MER (Management Expense Ratio)

The MER bundles the management fee, the operating expenses, the trailer commission paid to your advisor, and GST/HST. It is deducted from the fund daily, you never see a bill. Canadian equity mutual funds historically carry MERs of 2.0% to 2.5%, among the highest in the developed world, while Canadian index ETFs sit at 0.05% to 0.25% (XEQT and VEQT are around 0.20%). Over a 30-year horizon, an extra 1.5% MER can eat 30% to 35% of your final portfolio. CIRO and the CSA now require fund facts and an annual report on charges (CRM2) so you can see the dollar cost.