ESMA strengthens ETF cost transparency rules: what changes from July 1, 2026
The new directive requires issuers to disclose the actual TER (including transaction costs), not just the headline TER.
QFQuentin Fossé·Founder & Editor in ChiefThe ESMA directive
ESMA published on February 28, 2026 new cost transparency rules for UCITS funds and ETFs, applicable from July 1, 2026. Issuers must now publish an all-in TER including internal transaction costs, not just management fees.
Actual vs headline TER
Until now, the headline TER didn't capture all real costs. Tracking difference (gap between fund return and index return) was a better real cost indicator, but hard to compare across issuers. The new rule imposes a standardised metric for apples-to-apples comparison.
Implementation timeline
Issuers have until July 1, 2026 to comply. Reformatted KIDs (Key Information Documents) will be available from that date. Data aggregators (justETF, Morningstar) will update their databases accordingly.