A Guide to the 25 Cheapest ETFs

The ETFs are seeing explosive growth, piling up huge assets. It has become one of the most popular investment vehicles due to its unique strategies, creativity, transparency, diversification benefits, enhanced tax competencies, low turnover, and, of course, low costs.

While there are several types of costs associated with ETFs, such as trading commissions, bid/ask spreads, premiums and discounts, and tracking errors, expense ratios have been the biggest crowd pullers in the ETF world. This is especially true as ETFs with low expense ratios significantly outperform their expensive counterparts when other factors remain constant. This can be explained by the following example (see: all the ETFs with Low Expense Ratios here).

Consider two funds with expense ratios of 0.10% and 0.50% and invest $10,000 in both. Now, both funds have delivered the same annual returns of 10% in 10 years. The fund with an expense ratio of 0.10% will grow to $25,703 in 10 years, while the same fund with a 0.50% expense ratio will grow by a lower amount of $24,782. Further, the difference in total returns (after expenses) becomes more significant if we increase the holding period. The same funds with an expense ratio of 0.10% and 0.50%, when invested for 30 years, would have a value of $169,797 and $152,203, respectively, after 30 years.

Finding the Cheapest ETFs

Keeping the importance of the expense ratio in mind, we have highlighted the 25 cheapest ETFs currently on the market, which have an AUM of more than $50 million:

BNY Mellon US Large Cap Core Equity ETF (BKLC) – Expense ratio: 0.00%

BNY Mellon US Large Cap Core Equity ETF provides investors with broad exposure to large-capitalization stocks and tracks the Solactive GBS Unites States 500 Index TR. It holds 504 stocks in its basket and has AUM of $3.2 billion. The product trades in an average daily volume of 92,000 shares a day.

BNY Mellon Core Bond ETF (BKAG) – Expense ratio: 0.00%

BNY Mellon Core Bond ETF provides investors with broad exposure to the overall U.S. bond market by tracking the Bloomberg US Aggregate Total Return Index. It holds 4,632 bonds in its basket with an effective duration of 6.14 years and average maturity of 8.48 years. BNY Mellon Core Bond ETF has amassed $1.9 billion in its asset base and trades in an average daily volume of 1 million shares.

SPDR Portfolio S&P 500 ETF (SPLG) – Expense ratio: 0.02%

SPDR Portfolio S&P 500 ETF offers exposure to the U.S. large-cap segment by tracking the S&P 500 Index. Holding 503 stocks in its basket, it is the lowest-cost large-cap blend S&P 500 ETF offering. SPDR Portfolio S&P 500 ETF has an AUM of $54.3 billion and trades in a solid volume of 6 million shares a day, on average. It carries a Zacks ETF Rank #1 (Strong Buy).

JPMorgan BetaBuilders U.S. Equity ETF (BBUS) – Expense ratio: 0.02%

JPMorgan BetaBuilders U.S. Equity ETF offers exposure to 555 U.S. large and mid-cap equities by tracking the Morningstar US Target Market Exposure Index. It has an AUM of $4.3 billion and trades in an average daily volume of 126,000 shares.

iShares Core S&P 500 ETF (IVV) – Expense ratio: 0.03%

iShares Core S&P 500 ETF is the third-largest fund in the space, with an AUM of $574.3 billion and an average daily volume of 3.1 million shares. It tracks the S&P 500 Index and holds 503 securities in its basket. IVV has a Zacks ETF Rank #1 (read: The Most Popular ETFs of 2024).

Vanguard Total Stock Market ETF (VTI) – Expense ratio: 0.03%

Vanguard Total Stock Market ETF follows the CRSP US Total Market Index, offering broad exposure across growth and value styles. Holding 3644 stocks, it has an AUM of $471 billion and an average daily volume of nearly 3 million shares. VTI has a Zacks ETF Rank #2 (Buy).

Vanguard S&P 500 (VOO) – Expense ratio: 0.03%

Vanguard S&P 500 is another low-cost, well-diversified large-cap fund, tracking the S&P 500 Index and holding 504 securities in its basket. It trades in a volume of 4 million shares a day and has an AUM of $587 billion. Vanguard S&P 500 has a Zacks ETF Rank #1 (read: Record ETF Cash Inflows Power Market Surge).

Vanguard Total Bond Market ETF (BND) – Expense ratio: 0.03%

Vanguard Total Bond Market ETF targets the broad U.S. investment grade bond market by tracking the Bloomberg U.S. Aggregate Float Adjusted Index. It holds 11,336 securities in its basket, with an average maturity of 8.4 years and an average duration of six years. BND is the largest bond ETF, with an AUM of $122.4 billion and an average daily volume of 6 million shares.

iShares Core U.S. Aggregate Bond ETF (AGG) – Expense ratio: 0.03%

iShares Core U.S. Aggregate Bond ETF also offers broad exposure to U.S. investment-grade bonds and follows the BBG U.S. Aggregate Index. It holds a broad basket of 12,134 bonds, with an average maturity of 8.27 years and an effective duration of 5.94 years. AGG is the largest and most liquid bond ETF, with an AUM of $121.8 billion and an average daily volume of 8 million shares.

iShares Core S&P Total U.S. Stock Market ETF (ITOT) – Expense ratio: 0.03%

iShares Core S&P Total U.S. Stock Market ETF offers exposure to the total U.S. stock market, from some of the smallest to largest companies and tracks the S&P Total Market Index. It holds a larger basket of 2,547 stocks and has an AUM of $66.2 billion. ITOT trades in an average daily volume of 919,000 shares and has a Zacks ETF Rank #2 (read: 5 Reasons Why Wall Street ETFs Could Gain in 2025).

Schwab U.S. Large-Cap ETF (SCHX) – Expense ratio: 0.03%

Schwab U.S. Large-Cap ETF follows the Dow Jones U.S. Large-Cap Total Stock Market Index, holding 753 securities in its basket. It has amassed $52.9 billion in its asset base and trades in a volume of 5.5 million shares. Schwab U.S. Large-Cap ETF has a Zacks ETF Rank #2.

Schwab U.S. Broad Market ETF (SCHB) – Expense ratio: 0.03%

This fund provides broad exposure to the U.S. equity market by tracking the Dow Jones U.S. Broad Stock Market Index. It holds a well-diversified portfolio of 2,464 stocks. SCHB is one of the most popular and liquid ETFs, with an AUM of $33.4 billion and an average daily volume of 2 million shares. It has a Zacks ETF Rank #3 (Hold).

Schwab U.S. TIPS ETF (SCHP) – Expense ratio: 0.03%

Schwab U.S. TIPS ETF tracks the Bloomberg Barclays US Treasury Inflation-Linked Bond Index (Series-L), holding 50 securities in its basket. It has an effective duration of 6.70 years and an average maturity of 7.40 years. SCHP is among the cheapest options in the TIPS space, with an AUM of $12 billion and an average daily volume of 2.8 million shares.

SPDR Portfolio Developed World ex-US ETF (SPDW) – Expense ratio: 0.03%

SPDR Portfolio Developed World ex-US ETF offers broad exposure to developed international equities outside the United States by tracking the S&P Developed Ex-U.S. BMI Index. It has a well-diversified basket of 2,396 stocks, with an AUM of $21.1 billion and an average daily volume of 2.5 million shares. SPDR Portfolio Developed World ex-US ETF has a Zacks ETF Rank #3.

Schwab U.S. Aggregate Bond ETF (SCHZ) – Expense ratio: 0.03%

Schwab U.S. Aggregate Bond ETF offers exposure to the U.S. investment grade, taxable bond market, holding 10,755 bonds in its basket. It tracks the Bloomberg US Aggregate Bond Index, with an effective duration of 6.01 years and an average maturity of 8.43 years. Schwab U.S. Aggregate Bond ETF has amassed $8.6 billion and trades in a volume of 1 million shares a day on average.

Schwab Short-Term U.S. Treasury ETF (SCHO) – Expense ratio: 0.03%

Schwab Short-Term U.S. Treasury ETF targets the short-end of the Treasury market by tracking the Bloomberg US Treasury 1-3 Year Index. It holds 98 bonds in its basket, with an average maturity of 1.97 years and an average duration of 1.88 years. Schwab Short-Term U.S. Treasury ETF has an AUM of $11.2 billion and trades in an average daily volume of 2 million shares. It has a Zacks ETF Rank #3.

iShares 0-5 Year TIPS Bond ETF (STIP) – Expense ratio: 0.03%

iShares 0-5 Year TIPS Bond ETF offers exposure to short-term TIPS, with an effective duration of 2.32 years and an average maturity of 2.43 years. The fund holds 25 securities in its basket and follows the ICE US Treasury 0-5 Year Inflation Linked Bond Index. STIP has amassed $9.7 billion in its asset base and trades in an average daily volume of 444,000 shares.

SPDR Portfolio Aggregate Bond ETF (SPAB) – Expense ratio: 0.03%

With an AUM of $8.8 billion, SPDR Portfolio Aggregate Bond ETF tracks the Bloomberg U.S. Aggregate Bond Index, with an adjusted duration of 6.11 years and an average maturity of 8.44 years. It offers comprehensive exposure to U.S. dollar-denominated investment-grade bonds, including government bonds, corporate bonds, mortgage pass-through securities, commercial mortgage-backed securities and asset-backed securities. SPDR Portfolio Aggregate Bond ETF trades in an average daily volume of 2.5 million shares.

SPDR Portfolio S&P 1500 Composite Stock Market ETF (SPTM) – Expense ratio: 0.03%

SPDR Portfolio S&P 1500 Composite Stock Market ETF offers exposure to the broad market by tracking the S&P Composite 1500 Index, holding 1,513 stocks in its basket. It has an AUM of $10 billion and trades in an average daily volume of 322,000 shares. SPDR Portfolio S&P 1500 Composite Stock Market ETF has a Zacks ETF Rank #3.

SPDR Portfolio S&P 400 Mid Cap ETF (SPMD) – Expense ratio: 0.03%

SPDR Portfolio S&P 400 Mid Cap ETF targets the broad mid-cap segment of the broad U.S. market. It tracks the S&P MidCap 400 Index and holds 401 stocks in its basket. SPDR Portfolio S&P 400 Mid Cap ETF has accumulated $12.5 billion in its asset base while trading in a volume of 1 million shares per day on average. It has a Zacks ETF Rank #2.

SPDR Portfolio S&P 600 Small Cap ETF (SPSM) – Expense ratio: 0.03%

SPDR Portfolio S&P 600 Small Cap ETF offers exposure to the small-cap segment by tracking the S&P Small Cap 600 Index. It holds 605 stocks in its basket. SPDR Portfolio S&P 600 Small Cap ETF has been able to manage $13.2 billion in its asset base and trades in a good volume of 1.5 million shares a day on average. It has a Zacks ETF Rank #2.

SPDR Portfolio Short Term Treasury ETF (SPTS) – Expense ratio: 0.03%

SPDR Portfolio Short Term Treasury ETF offers exposure to U.S. Treasuries with a remaining maturity between 1 and 3 years and follows the Bloomberg 1-3 Year U.S. Treasury Index. It holds 104 bonds in its basket, with an average maturity of 1.94 years and an adjusted duration of 1.85 years. SPDR Portfolio Short Term Treasury ETF has an AUM of $5.6 billion and an average daily volume of 1.2 million shares. It has a Zacks ETF Rank #3.

iShares Morningstar U.S. Equity ETF (ILCB) – Expense ratio: 0.03%

iShares Morningstar U.S. Equity ETF tracks the Morningstar US Large-Mid Cap Index, holding 616 stocks in its basket. It has accumulated $1.2 billion in its asset base and trades in an average daily volume of 51,000 shares. The fund has a Zacks ETF Rank #2.

Franklin U.S. Equity Index ETF (USPX) - Expense ratio: 0.03%

Franklin U.S. Equity Index ETF follows the Morningstar US Target Market Exposure Index, which targets large and mid-capitalization U.S. stocks representing the top 85% of the U.S. equity market by float-adjusted market capitalization. It holds 568 stocks in its basket with AUM of $1.3 billion and an average daily volume of 78,000 shares.

JPMorgan BetaBuilders U.S. Aggregate Bond ETF (BBAG) – Expense ratio: 0.03%

JPMorgan BetaBuilders U.S. Aggregate Bond ETF seeks to offer exposure to the U.S. investment grade fixed rate bond market using an indexed approach. It tracks the Bloomberg U.S. Aggregate Bond Index and holds a diversified 2,429 bonds in its basket with average maturity of 13.10 years and duration of 6.12 years. JPMorgan BetaBuilders U.S. Aggregate Bond ETF has amassed $1.5 billion in its asset base and trades in an average daily volume of 225,000 shares.

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