Leverage-Adjusted Expense Ratio

Leverage-adjusted expense ratio is a fund expense ratio presented after adjusting the denominator or expenses for leverage under the stated method.

Why this matters to income investors

Including financing costs gives a fuller view of expenses borne by leveraged-fund shareholders.

How to use leverage-adjusted expense ratio in your research

Read the fee formula and its base in the latest filing. Calculate what the charge takes from assets or earnings, then check whether waivers are temporary and whether the remaining income supports distributions.

This material is general education and information, not individualized investment, tax, or legal advice.