Best ETFs for Spare Change Investing in 2026

How We Chose These ETFs

Selecting the right ETFs for spare change investing investors requires a careful evaluation of multiple factors. We analyzed dozens of funds across the industry and narrowed our recommendations based on the following criteria. Each factor was weighted according to its importance for investors in this specific category, ensuring that our picks are truly optimized for your goals.

1. Compatible with major — Compatible with major round-up investing platforms
2. Fractional share support — Fractional share support for tiny investment amounts
3. Ultra-low expense ratios — Ultra-low expense ratios critical for micro-sized investments
4. Broad market exposure — Broad market exposure from even the smallest contributions

We also factored in our proprietary Beginner Suitability Score, which evaluates each fund on a 1-to-10 scale considering expense ratios, volatility (beta), diversification (holdings count), dividend history, and track record length. Funds that score consistently high across these dimensions earned a spot on our list.

1. Vanguard S&P 500 ETF (VOO) — Best Overall

Vanguard • U.S. Large-Cap Blend

VOO tracks the S&P 500 index, giving you ownership in 500 of the largest U.S. companies in a single investment. It is one of the most popular ETFs in the world thanks to its ultra-low expense ratio and broad market exposure. For beginners, VOO is often recommended as a core portfolio holding because it provides instant diversification across America's leading businesses.

Vanguard S&P 500 ETF earns its spot as our best overall pick because it delivers on the metrics that matter most for spare change investing investors. With an expense ratio of just 0.03%, you keep more of your returns working for you over time. The fund manages $560.0B in total assets, which speaks to its popularity and ensures strong liquidity with tight bid-ask spreads when you buy or sell shares.

Over the past five years, VOO has delivered a total return of 15.80%, outperforming many of its peers and rewarding patient, long-term investors. The fund holds 503 individual securities, giving you exceptional diversification across a wide swath of the market. Its beta of 1.00 indicates that the fund is closely aligned with overall market movements, which is expected for a broadly diversified fund.

VOO currently pays a dividend yield of 1.30%, providing investors with a stream of regular income on top of capital appreciation. Dividends are typically distributed quarterly and can be automatically reinvested through most major brokerages, accelerating the compounding process. With a track record stretching back to 2010, VOO has weathered multiple market cycles including the 2008 financial crisis and the 2020 pandemic, proving its resilience. Our Beginner Suitability Score rates it 9.5/10 (Great for Beginners), reflecting its excellent combination of low costs, manageable volatility, and broad diversification.

2. Vanguard Total Stock Market ETF (VTI) — Runner-Up

Vanguard • U.S. Total Market

VTI gives you exposure to the entire U.S. stock market in one fund, covering large-cap, mid-cap, and small-cap companies. With over 3,600 holdings, it is one of the most diversified U.S. equity ETFs you can buy. Beginners often choose VTI over S&P 500 funds because it includes smaller companies that have historically provided additional growth potential.

Vanguard Total Stock Market ETF earns its spot as our runner-up pick because it delivers on the metrics that matter most for spare change investing investors. With an expense ratio of just 0.03%, you keep more of your returns working for you over time. The fund manages $430.0B in total assets, which speaks to its popularity and ensures strong liquidity with tight bid-ask spreads when you buy or sell shares.

Over the past five years, VTI has delivered a total return of 15.20%, outperforming many of its peers and rewarding patient, long-term investors. The fund holds 3,644 individual securities, giving you exceptional diversification across a wide swath of the market. Its beta of 1.00 indicates that the fund is closely aligned with overall market movements, which is expected for a broadly diversified fund.

VTI currently pays a dividend yield of 1.30%, providing investors with a stream of regular income on top of capital appreciation. Dividends are typically distributed quarterly and can be automatically reinvested through most major brokerages, accelerating the compounding process. With a track record stretching back to 2001, VTI has weathered multiple market cycles including the 2008 financial crisis and the 2020 pandemic, proving its resilience. Our Beginner Suitability Score rates it 9.5/10 (Great for Beginners), reflecting its excellent combination of low costs, manageable volatility, and broad diversification.

3. SPDR Portfolio S&P 500 ETF (SPLG) — Best for Diversification

State Street • US Large-Cap Blend

SPLG tracks the S&P 500 Index at an expense ratio of just 0.02%, making it one of the absolute cheapest ways to own America's 500 largest companies. It is the low-cost sibling of the famous SPY ETF, designed specifically for long-term buy-and-hold investors rather than active traders. The lower share price compared to SPY also makes it more accessible for smaller investment amounts.

SPDR Portfolio S&P 500 ETF earns its spot as our best for diversification pick because it delivers on the metrics that matter most for spare change investing investors. With an expense ratio of just 0.02%, you keep more of your returns working for you over time. The fund manages $40.0B in total assets, which speaks to its popularity and ensures strong liquidity with tight bid-ask spreads when you buy or sell shares.

Over the past five years, SPLG has delivered a total return of 14.00%, outperforming many of its peers and rewarding patient, long-term investors. The fund holds 503 individual securities, giving you exceptional diversification across a wide swath of the market. Its beta of 1.00 indicates that the fund is closely aligned with overall market movements, which is expected for a broadly diversified fund.

SPLG currently pays a dividend yield of 1.40%, providing investors with a stream of regular income on top of capital appreciation. Dividends are typically distributed quarterly and can be automatically reinvested through most major brokerages, accelerating the compounding process. With a track record stretching back to 2005, SPLG has weathered multiple market cycles including the 2008 financial crisis and the 2020 pandemic, proving its resilience. Our Beginner Suitability Score rates it 9.5/10 (Great for Beginners), reflecting its excellent combination of low costs, manageable volatility, and broad diversification.

4. SPDR Portfolio S&P 1500 Composite Stock Market ETF (SPTM) — Best for Stability

State Street • US Total Market

SPTM tracks the S&P Composite 1500 Index, which combines the S&P 500, S&P MidCap 400, and S&P SmallCap 600 into one fund covering the full range of U.S. stock market capitalization. It offers near-total market coverage at an ultra-low cost, with the added benefit of S&P's profitability screening across all size segments. This is a one-stop shop for U.S. stock exposure.

SPDR Portfolio S&P 1500 Composite Stock Market ETF earns its spot as our best for stability pick because it delivers on the metrics that matter most for spare change investing investors. With an expense ratio of just 0.03%, you keep more of your returns working for you over time. The fund manages $10.0B in total assets, which speaks to its popularity and ensures strong liquidity with tight bid-ask spreads when you buy or sell shares.

Over the past five years, SPTM has delivered a total return of 13.00%, outperforming many of its peers and rewarding patient, long-term investors. The fund holds 1,500 individual securities, giving you exceptional diversification across a wide swath of the market. Its beta of 1.01 indicates that the fund is closely aligned with overall market movements, which is expected for a broadly diversified fund.

SPTM currently pays a dividend yield of 1.40%, providing investors with a stream of regular income on top of capital appreciation. Dividends are typically distributed quarterly and can be automatically reinvested through most major brokerages, accelerating the compounding process. With a track record stretching back to 2000, SPTM has weathered multiple market cycles including the 2008 financial crisis and the 2020 pandemic, proving its resilience. Our Beginner Suitability Score rates it 9/10 (Great for Beginners), reflecting its excellent combination of low costs, manageable volatility, and broad diversification.

5. Schwab U.S. Dividend Equity ETF (SCHD) — Best for Dividends

Charles Schwab • U.S. Large-Cap Dividend

SCHD focuses on high-quality U.S. companies with strong track records of paying and growing dividends. It uses a rules-based approach to select about 100 stocks that have consistently paid dividends for at least 10 years. Beginners who want both income and growth often find SCHD attractive because it combines a solid dividend yield with quality stock selection at a very low cost.

Schwab U.S. Dividend Equity ETF earns its spot as our best for dividends pick because it delivers on the metrics that matter most for spare change investing investors. With an expense ratio of just 0.06%, you keep more of your returns working for you over time. The fund manages $62.0B in total assets, which speaks to its popularity and ensures strong liquidity with tight bid-ask spreads when you buy or sell shares.

Over the past five years, SCHD has delivered a total return of 12.10%, outperforming many of its peers and rewarding patient, long-term investors. The fund holds 103 individual securities, giving you solid diversification across a meaningful number of positions. Its beta of 0.82 indicates that the fund is closely aligned with overall market movements, which is expected for a broadly diversified fund.

SCHD currently pays a dividend yield of 3.40%, providing investors with a stream of regular income on top of capital appreciation. Dividends are typically distributed quarterly and can be automatically reinvested through most major brokerages, accelerating the compounding process. With a track record stretching back to 2011, SCHD has weathered multiple market cycles including the 2008 financial crisis and the 2020 pandemic, proving its resilience. Our Beginner Suitability Score rates it 9/10 (Great for Beginners), reflecting its excellent combination of low costs, manageable volatility, and broad diversification.

Comparison Table

Here is a side-by-side comparison of all 5 ETFs in our spare change investing category. This table highlights the key metrics you should evaluate when choosing between these funds. Pay close attention to expense ratios and beginner scores, as these are the most impactful factors for long-term investment success.

*Beginner Score is calculated based on expense ratio, beta, holdings count, dividend yield, and fund inception year. Past performance does not guarantee future results.

Common Mistakes Spare Change Investing Investors Make

Even with a solid selection of ETFs, investors in the spare change investing category can undermine their results by falling into avoidable traps. Understanding these common pitfalls will help you stay on track and avoid costly errors that could set back your financial progress by years or even decades.

• 1

  Relying solely on spare: Relying solely on spare change and not making additional contributions

• 2

  Paying app fees that: Paying app fees that represent a high percentage of tiny balances

• 3

  Not graduating to direct: Not graduating to direct brokerage investing as your balance grows

• 4

  Thinking spare change alone: Thinking spare change alone will fund retirement

The best defense against these mistakes is a simple, written investment plan that you commit to following regardless of market conditions. Define your target allocation, set up automatic contributions, and schedule a review only once or twice per year. This removes emotion from the process and keeps you focused on long-term wealth building rather than short-term noise.

Frequently Asked Questions