What is the cheapest S&P 500 ETF?

SPLG (SPDR Portfolio S&P 500 ETF) is the cheapest S&P 500 ETF with an expense ratio of just 0.02%. VOO and IVV are tied at 0.03%. SPY, the original and most liquid, charges 0.0945%.

Does expense ratio really matter?

Yes. On a $100,000 portfolio over 30 years, the difference between a 0.03% and a 0.50% expense ratio is approximately $14,000 in lost returns (assuming 7% annual growth). For passive index funds tracking the same benchmark, lower expense ratios directly translate to higher net returns.

VOO vs SPY which is better?

Both track the S&P 500. VOO charges 0.03% vs SPY's 0.0945%. For buy-and-hold investors, VOO saves ~$65/year per $100,000 invested. SPY has tighter spreads and higher volume, making it preferred by active traders. For long-term holding, VOO is the better choice.

What is the average ETF expense ratio?

Across our index of 86 major ETFs, the average expense ratio is 0.164% and the median is 0.09%. Broad-market index funds average around 0.03-0.05%, while thematic and actively managed ETFs average 0.35-0.75%. The industry trend is strongly toward lower fees.

Which ETF provider has the lowest fees?

Schwab and Vanguard offer the lowest average expense ratios. Schwab averages 0.046% across 8 ETFs, while Vanguard averages 0.055% across 17 ETFs. SPDR's Portfolio line (SPLG, SPTM, SPYG, SPYV) competes at 0.02-0.04%, though their legacy products like SPY and GLD are pricier.

ETF Expense Ratio Index 2026 — Westmount Research

Methodology

Expense ratios were sourced from official fund prospectuses filed with the SEC and verified against issuer websites (Vanguard, iShares/BlackRock, SPDR/State Street, Schwab, Invesco, and others). AUM figures are approximate as of Q1 2026 and may fluctuate with market conditions and fund flows.

This index covers 86 of the most widely held ETFs across seven categories: US Equity, International, Bond, Sector, Thematic, Dividend, and Commodity. ETFs were selected based on AUM, trading volume, and investor relevance. All data is publicly available from official fund documentation.

Expense ratios represent the total annual fund operating expenses as a percentage of assets. They are deducted from fund returns automatically and reduce the net asset value over time. Lower expense ratios directly benefit long-term investors.

Cite this research

Westmount Research. "ETF Expense Ratio Index 2026." Published March 9, 2026. https://westmountresearch.com/etf-expense-ratios

ETF Expense Ratio Index 2026

Expense Ratios: Cheapest to Most Expensive

Average Expense Ratio by Provider

Key Findings

Full ETF Comparison Table

Frequently Asked Questions

Methodology

Cite this research