The so-called Total Expense Ratio, or TER for short, is the total annual expense ratio for managing the ETF. This fee covers all items that are recurring annually for the management of the product. The TER serves as a decision-making tool for investors to make the right investment. In the long run, a lean fee structure of an investment product is a clear advantage because especially due to the compound interest effect, saved fees can open up enormous return potentials in the long run.