The management expense ratio (MER) is the annual fee charged by an ETF issuer, expressed as a percentage of assets under management. It is one component of the total cost of owning an ETF. The following ETFs have among the lowest MERs of ASX-listed funds as at Q2 2026.
Last updated: Q2 2026. MER figures are reported from fund manager disclosures and reviewed quarterly. This table is refreshed each quarter.
| Ticker | Name | MER | Asset class |
|---|---|---|---|
| IVV | iShares S&P 500 ETF | 0.04% p.a. | US shares |
| A200 | Betashares Australia 200 ETF | 0.04% p.a. | Australian shares |
| STW | SPDR S&P/ASX 200 ETF | 0.05% p.a. | Australian shares |
| VAS | Vanguard Australian Shares Index ETF | 0.07% p.a. | Australian shares |
| VGS | Vanguard MSCI Index International Shares ETF | 0.18% p.a. | Global shares |
| DHHF | Betashares Diversified All Growth ETF | 0.19% p.a. | Diversified |
| VDHG | Vanguard Diversified High Growth Index ETF | 0.27% p.a. | Diversified |
| NDQ | Betashares Nasdaq 100 ETF | 0.48% p.a. | US shares |
MER is not the only cost of owning an ETF. The indirect cost ratio (ICR), bid-ask spread, brokerage, and tax treatment also affect the true cost of ownership. This table is general information only and does not constitute a recommendation to purchase any ETF listed. Past performance is not a reliable indicator of future returns.
What does the MER actually measure?
The MER is the percentage of fund assets deducted each year to cover the issuer's management costs. A fund with an MER of 0.07% per year costs approximately $7 per year for every $10,000 invested. The fee is taken from the fund's assets rather than charged separately, so you do not see it as a line item, but it still reduces your return. You can model the long-run dollar impact of different MERs with the ETFLens fee calculator.
Why the lowest MER is not always the lowest total cost
MER is one component of the cost of ownership, not the whole picture. The indirect cost ratio (ICR) captures costs incurred inside the fund. The bid-ask spread is the gap between the buy and sell price each time you trade. Brokerage is charged by your broker per trade. Tax treatment, including the franking and capital gains components of distributions, also affects your after-tax outcome. A fund with the lowest management expense ratio is not automatically the lowest total cost or appropriate for any individual. This is general information only and does not constitute a recommendation.
General information only. Not financial advice. This article does not consider your personal circumstances and does not constitute a recommendation to purchase any ETF. MER data is reported from fund manager disclosures and reviewed quarterly; always check the current PDS for the most recent fee information before investing. Past performance is not a reliable indicator of future returns. Consider your personal circumstances and read the relevant PDS before making any investment decisions. ETFLens does not hold an Australian Financial Services Licence.