WealthMER vs Management Fees in Canada: What You Pay
Put a fee percentage into perspective
Compare two fee scenarios using an amount and time horizon you choose. The calculator is free to use without an account; its results are illustrations, not predictions.
Compare fee scenarios →Management fee, MER and TER: the difference
| Term | What it measures |
|---|---|
| Management fee | A component paid for managing the fund, not the entire MER. |
| MER | Management expense ratio: management and operating expenses, including applicable taxes. |
| TER | Trading expense ratio: the fund's costs of buying and selling investments, separate from MER. |
| FER | Fund expense ratio: MER + TER. |
The distinction is explained in the Ontario Securities Commission's investor education guides to Fund Facts and total cost reporting. MER is not a complete list of every charge you may pay: account, advisory and transaction fees can be separate.
A $100,000 example you can check
Illustration only: hold the investment value constant at $100,000 for one year, with an unchanged MER. These are invented fee scenarios, not quotes for actual funds.
Estimated annual MER cost = holding value × MER ÷ 100
| Hypothetical MER | Calculation | Annual cost |
|---|---|---|
| 0.20% | $100,000 × 0.002 | $200 |
| 1.00% | $100,000 × 0.010 | $1,000 |
The difference is $800 for that year under these assumptions. It is a cost comparison, not evidence that one fund will outperform another. Actual dollar costs change with the value held, time invested and fee changes; this example excludes TER and separate account charges.
Now try your own assumptions
Change the balance, fees, contributions and horizon in the fee-impact calculator. Longer-term results also depend on your assumed gross return, so compare more than one scenario.
Open the free MER calculator →Where to find the right fee
- Open the fund provider's latest Fund Facts for a mutual fund or ETF Facts for an ETF.
- Check the exact fund name, series or class, and the document's reporting date. A similarly named fund can have a different fee structure.
- Read the MER and trading-cost disclosure, then check your broker or adviser's separate charges.
A headline management fee is not interchangeable with the reported MER. The OSC's fund-fee guide explains where fund expenses are disclosed and why fee structures differ.
Compare costs without promising a return
A lower fee reduces one cost; it does not establish that two funds offer the same investments, risks or services. Compare what each holds and how it fits with the rest of a portfolio. The risk rating in Fund Facts describes past volatility, not a prediction or a personal suitability assessment.
Do not deduct MER twice. Published Fund Facts returns already reflect fund expenses. A calculator asking for a gross return before fees needs a different input from an already-net historical fund return.
Frequently asked questions
What does the MER include?
The management expense ratio includes the management fee, operating expenses and applicable taxes. The management fee alone is not the full MER.
What does TER mean in Canada?
In Canadian fund disclosures, TER means trading expense ratio: the fund's trading costs. It is separate from MER. The fund expense ratio combines MER and TER.
How much is a 0.20% MER on $100,000?
About $200 for one year if the holding's value stays at $100,000 and the MER stays at 0.20%. This is a simplified estimate of MER only, not a bill or a return forecast.
Are published fund returns before or after fees?
Fund Facts performance is reported after fund expenses. Subtracting the same MER again would double-count it. Personal account, advisory or transaction charges can be separate.
Sources and methodology
Reviewed September 8, 2026. Definitions and disclosure guidance come from the OSC Investor Office. Dollar examples are WealthWise arithmetic using the assumptions shown, not current fund data.