When selecting ETFs, not only performance matters but also the costs incurred through management fees. As a Plus or Investor plan subscriber, you can now analyze the fees of all your held ETFs and funds from the last 12 months in the Parqet web app.

This blog post provides an overview of the new feature and explains what the Total Expense Ratio (TER) is and why it's crucial for investment decisions.

What Does the New Fee Feature Show?

In the new "Fees" tab within the Analysis tab, you'll find a detailed overview of all fees you've paid for your ETFs and funds in the last 12 months. The display includes:

• Total Fees: Here the total costs of the last 12 months are displayed.
• Average TER (Total Expense Ratio): This metric indicates the percentage of annual total costs of the ETF or fund in relation to the average fund assets. The lower the TER, the cheaper the ETF.
• Fees and TER per ETF: A detailed breakdown of costs for each ETF and fund in your portfolio.

Optionally, fees for sold positions can also be displayed. This gives you a complete picture of your cost structure.

What Is the Total Expense Ratio (TER)?

The Total Expense Ratio (TER) indicates the total cost ratio of an ETF or fund. It is expressed as a percentage and includes all ongoing costs caused by the ETF, such as management fees, operating costs, and other ongoing administrative costs. The TER is calculated as follows:

TER = (Total Fund Costs / Avg. Fund Assets) × 100

A low TER means that fewer costs are incurred relative to the value of the investment. This can significantly impact returns over the long term.

Outlook and Feedback

This feature is live in its first version. It's based on feedback from beta users. We're constantly working to improve Parqet. For the future, we plan to further expand this feature - for example, by suggesting lower-cost ETFs with similar composition. Many more ideas are already on our roadmap.

Try out the new fee feature right away and always keep an eye on your ETF and fund costs. If you're missing a fund or ETF that we don't yet support, feel free to write to us at support@parqet.com. We look forward to your feedback and suggestions.

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