An expense ratio is the percentage of a fund's assets taken each year to run it, covering the manager's fee, any 12b-1 fees and other costs.
You'll find it in the fee table of the fund's prospectus as total annual fund operating expenses. It comes out of the fund's assets, so it never appears as a bill; it shows up as a lower return.
It is separate from what you pay an advisor. Your total cost is the advisor's fee plus the expenses of every fund you hold, and the SEC requires advisers to describe those other costs, such as mutual fund expenses, in their brochures. On $500,000, every 0.10% of expense ratio is $500 a year.
Two funds holding similar investments can have very different expense ratios, so it's one of the easiest costs to compare.
How to check
Look up each fund's prospectus or fact sheet. Ask your advisor for your total yearly cost in dollars, including fund expenses, and check Item 5.C of their Form ADV Part 2A brochure.
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