If all else is equal, an exchange-traded fund’s expense ratio is often times the deciding factor when it comes to investing. A fund’s expense ratio is the measure of the cost to run the fund. These operating expenses are taken out of the ETF’s assets, thus lowering the return for the investors. The lower the expense ratio, the lower the cost of fund ownership. Here are the 100 exchange-traded funds with the lowest expense ratios in the industry. If you’re curious, you may also wish to peruse our list of the 100 ETFs with the highest expense ratios.
This data may include leveraged and inverse ETFs. To exclude leveraged and inverse ETFs from the table below, click here.
FAQs
The 10 Best Low Cost ETFs by Expense Ratio and AUM
| Ticker | Fund | Expense Ratio |
|---|
| VOO | Vanguard S&P 500 ETF | 0.03% |
| BND | Vanguard Total Bond Market ETF | 0.03% |
| AGG | iShares Core U.S. Aggregate Bond ETF | 0.03% |
| ITOT | iShares Core S&P U.S. Total Stock Market ETF | 0.03% |
6 more rows100 Lowest Expense Ratio ETFs – Cheapest ETFs
| Symbol | Name | Expense Ratio |
|---|
| SPLG | SPDR Portfolio S&P 500 ETF | 0.02% |
| BBUS | JPMorgan BetaBuilders U.S. Equity ETF | 0.02% |
| BND | Vanguard Total Bond Market ETF | 0.03% |
| AGG | iShares Core U.S. Aggregate Bond ETF | 0.03% |
96 more rows- S&P 500 ETF with the Lowest Fees: iShares Core S&P 500 ETF (IVV) (Tie)
- S&P 500 ETF with the Lowest Fees: Vanguard S&P 500 ETF (VOO)(Tie)
- S&P 500 ETF with the Lowest Fees: SPDR Portfolio S&P 500 ETF (SPLG) (Tie)
- Most Liquid S&P 500 ETF: SPDR S&P 500 ETF (SPY)
- Why Expense Ratios Matter.
Lowest Cost S&P 500 Index Fund: Fidelity 500 Index Fund (FXAIX)
- Expense Ratio: 0.015%
- 2022 Return: -18.13%
- Yield: 1.33%
- Assets Under Management (AUM): $373.8 billion.
- Minimum Investment: $0.
- Inception Date: Feb. 17, 1988 (Share Class Inception Date: May 4, 2011)
- Issuing Company: Fidelity.
And the QQQ is cheap, only charging 0.2%. There's an even cheaper version, the Invesco Nasdaq 100 ETF (QQQM), which charges just 0.15%. Compare that to the 0.75% charged by ARK Innovation (ARKK). And ARK Innovation gained just 2.6% annually in the past 10 years.
What is the ETF with the highest return? ›
100 Highest 5 Year ETF Returns
| Symbol | Name | 5-Year Return |
|---|
| FNGO | MicroSectors FANG+ Index 2X Leveraged ETNs | 56.51% |
| SOXL | Direxion Daily Semiconductor Bull 3x Shares | 45.44% |
| TECL | Direxion Daily Technology Bull 3X Shares | 44.21% |
| SMH | VanEck Semiconductor ETF | 38.76% |
93 more rows- Top 7 ETFs to buy now.
- Vanguard 500 ETF.
- Invesco QQQ Trust.
- Vanguard Growth ETF.
- iShares Core SP Small-Cap ETF.
- iShares Core Dividend Growth ETF.
- Vanguard Total Stock Market ETF.
- iShares Core MSCI Total International Stock ETF.
A no-fee ETF, or zero-fee ETF, is an exchange-traded fund (ETF) that can be bought and traded without paying a commission or fee to a broker. An increasing number of brokerages have been offering investors the chance to buy or sell these securities for free in order to remain competitive with other platforms.
What is a good expense ratio for an ETF? ›
Passively managed funds usually just track an index or sector, so their expenses are lower. The expense ratios of passively managed ETFs and mutual funds usually average around 0.05% to 0.3%, while the ratios for actively managed funds average between 0.5% and 1%.
What ETF is beating the S&P 500? ›
The Vanguard S&P 500 Growth Index Fund ETF (NYSEMKT: VOOG) has trounced the S&P 500 this year with a gain of nearly 15.7%. As its name indicates, this ETF focuses on growth stocks in the S&P 500. There are many of them, as this ETF owns 229 stocks. Its top holdings include Microsoft, Apple, and Nvidia.
SoFi Select 500 ETF (SFY)
SFY isn't just notable for its zero expense ratio; it's also distinguished by its approach to investment. This ETF is actually a factor ETF tracking the Solactive SoFi US 500 Growth Index.
Is SPY better than VOO? ›
VOO typically provides a higher dividend yield compared to SPY. This aspect is particularly attractive to investors who prioritize income generation from their investments.
Which Fidelity fund beat the S&P 500? ›
On average, the Fidelity Contrafund has beaten the S&P 500 Index by 2.78% per year. Growth of $10,000 invested in Contrafund versus S&P 500 Index, September 17, 1990 to March 31, 2024. Total value March 31, 2024 for Contrafund was $751,828 compared to $327,447 for the S&P 500 Index.
What is the lowest expense ratio for Russell 2000 ETF? ›
Russell 2000 Index ETF List: 11 ETFs
| Ticker | Fund Name | Expense Ratio |
|---|
| IWM | iShares Russell 2000 ETF | 0.19% |
| VTWO | Vanguard Russell 2000 ETF | 0.10% |
| TNA | Direxion Daily Small Cap Bull 3X Shares | 1.08% |
| TZA | Direxion Daily Small Cap Bear 3X Shares | 1.04% |
6 more rowsFidelity® 500 Index Fund has an expense ratio of 0.02 percent.
What is a good expense ratio for ETF? ›
The expense ratios of passively managed ETFs and mutual funds usually average around 0.05% to 0.3%, while the ratios for actively managed funds average between 0.5% and 1%.
Is VOO better than Spy? ›
VOO typically provides a higher dividend yield compared to SPY. This aspect is particularly attractive to investors who prioritize income generation from their investments.
What is the highest yielding ETF? ›
Top 100 Highest Dividend Yield ETFs
| Symbol | Name | Dividend Yield |
|---|
| NVDQ | T-Rex 2X Inverse NVIDIA Daily Target ETF | 111.49% |
| TSL | GraniteShares 1.25x Long Tesla Daily ETF | 93.63% |
| CONY | YieldMax COIN Option Income Strategy ETF | 79.86% |
| KLIP | KraneShares China Internet and Covered Call Strategy ETF | 58.24% |
93 more rows