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
A good rule of thumb is to not invest in any fund with an expense ratio higher than 1% since many ETFs have expense ratios that are much lower. Also, ETFs tend to be passively managed, which keeps the management fee low.
What is a reasonable ETF expense ratio? ›
A good rule of thumb is to not invest in any fund with an expense ratio higher than 1% since many ETFs have expense ratios that are much lower. Also, ETFs tend to be passively managed, which keeps the management fee low.
Why is Splg so cheap to invest in? ›
A 0.02% expense ratio makes SPLG one of the most affordable index ETFs on the market today. A 0.02% expense ratio makes SPLG one of the most affordable index ETFs on the market today. Whenever I analyze an ETF, one of the first things that can turn me off is a high expense ratio.
Are there ETFs with no expense ratio? ›
In a bid to attract cost-conscious investors, some ETF providers have begun to offer products with a 0% expense ratio. Yes, you read that correctly—these ETFs come without any management fees, making them essentially free to invest in (aside from the bid-ask spread and any other trading costs).
How do I know if an ETF is overpriced? ›
Compare the market price to the NAV to determine if the ETF is trading at a premium or discount to its NAV. If the market price is higher than the NAV, the ETF is trading at a premium. If the NAV is lower than the price, the ETF is trading at a discount.
What is better than VOO? ›
For most investors, the differences between the four ETFs are minor. They all track the same index, have similar holdings, and largely similar returns. The primary difference between SPY, VOO, IVV, and SPLG is their cost. SPLG has the lowest cost at 0.02%, followed by VOO and IVV at 0.03%, and SPY at 0.09%.
Is SPLG or VOO better? ›
In the past year, SPLG returned a total of 28.13%, which is slightly higher than VOO's 27.99% return. Over the past 10 years, SPLG has had annualized average returns of 12.60% , compared to 12.63% for VOO. These numbers are adjusted for stock splits and include dividends.
Is SPLG better than SPY? ›
SPLG - Performance Comparison. The year-to-date returns for both investments are quite close, with SPY having a 11.30% return and SPLG slightly higher at 11.32%. Both investments have delivered pretty close results over the past 10 years, with SPY having a 12.61% annualized return and SPLG not far ahead at 12.84%.
What are the cons of SPLG? ›
Cons of investing in SPLG:
Concentration risk: The concentration of SPLG is limited to a few big-cap stocks, where the top 10 holdings represent approximately 28% of the fund's assets. Due to this concentration, the fund becomes more prone to any notable downturn or instability in these stocks.
Can I buy an ETF for $1? ›
There are no restrictions on how often you can buy and sell stocks, or ETFs. You can invest as little as $1 with fractional shares, there is no minimum investment and you can execute trades throughout the day, rather than waiting for the NAV to be calculated at the end of the trading day.
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).
Is QQQ a low cost ETF? ›
Invesco QQQ's total expense ratio is 0.20%. Investment returns and principal value will fluctuate, and shares, when redeemed, may be worth more or less than their original cost.
