There are several factors that determine whether an expense ratio is considered high or low. A good expense ratio, from the investor's point of view, ranges from 0.5% to 0.75% for an actively managed portfolio. A spending ratio greater than 1.5% is considered high. The expense ratio is the percentage of the fund's assets that are used to cover management costs and other administrative expenses.
Look at this metric to get an idea of what a fund charges for its service. Expense ratios are calculated as a percentage of the average net assets under management.