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  • Apr 16th, 2018 1:51 pm
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[OP]
Sr. Member
Oct 21, 2016
945 posts
717 upvotes

Mer

Just wondering if an ETF contains another ETF as it's only holding is your mer the combination of the two or just the mer of the one ETF containing the other. For example vfv primary holding is voo ... So how is the mer calculated and does voo mer and vfv mer both drag down your return or is the mer for voo set to zero and you pay the mer of vfv. Is it better to have an ETF that directly holds its stocks instead of another fund which then holds the stock ?
3 replies
Deal Expert
Jan 27, 2006
19538 posts
12604 upvotes
Vancouver, BC
The MER of the vehicle you own directly is the only thing that matters as that MER should (and is by law) contain all of the expenses typically covered by a MER. Now, in your example where fund A only holds fund B, the MER for fund A is typically higher than just fund B's MER.

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