Best Low-Cost ETFs Under 0.10% Expense Ratio
Every penny in fees compounds against you. Here are the cheapest ETFs available for every major asset class.
Don't have time? Here's what you need to know:
- 1The cheapest core ETFs (VTI, VOO, BND) charge 0.03% — $3 per $10,000 per year
- 2A complete global portfolio costs 0.04% blended — about $41 per $100,000 per year
- 3Fidelity offers zero-fee mutual funds (FZROX, FZILX) but with less coverage and no portability
- 4The fee difference between 0.03% and 0.50% compounds to $180,000+ on $100K over 30 years
Why 0.07% Matters More Than You Think
On a $100,000 portfolio, the difference between a 0.03% ETF and a 0.50% ETF is $470 per year. Over 30 years at 10% returns, that fee gap costs you over $180,000 in lost compounding. Expense ratios are the most reliable predictor of future fund performance — not past returns, not star ratings, not fund manager reputation. Lower fees = more of your money stays invested.
The ETFs below all charge under 0.10% per year and cover every major asset class. You can build a complete global portfolio for less than $10 per $10,000 invested annually.
The Cheapest ETFs for Every Asset Class
| Asset Class | ETF | Expense Ratio | Provider | Holdings |
|---|---|---|---|---|
| Total U.S. Stock Market | VTI | 0.03% | Vanguard | 4,000+ |
| S&P 500 | VOO / IVV | 0.03% | Vanguard / iShares | 500 |
| Total International Stocks | VXUS | 0.07% | Vanguard | 7,000+ |
| Developed International | VEA | 0.05% | Vanguard | 4,000+ |
| Emerging Markets | VWO | 0.08% | Vanguard | 5,000+ |
| Total U.S. Bond Market | BND | 0.03% | Vanguard | 10,000+ |
| Short-Term Bonds | BSV | 0.04% | Vanguard | 2,500+ |
| U.S. Large-Cap Growth | SCHG | 0.04% | Schwab | 250+ |
| U.S. Large-Cap Value | SCHV | 0.04% | Schwab | 540+ |
| Dividend Growth | SCHD | 0.06% | Schwab | 100 |
Build the Cheapest Possible Global Portfolio
The rock-bottom cost portfolio: 60% VTI (0.03%) + 25% VXUS (0.07%) + 15% BND (0.03%). Blended expense ratio: 0.041%. On $100,000, that is $41 per year in total fees. This portfolio holds over 21,000 stocks and bonds across 40+ countries. You cannot get broader diversification at a lower price anywhere.
Fidelity offers even cheaper mutual fund alternatives: FZROX (Zero Total Market, 0.00%) and FZILX (Zero International, 0.00%). These zero-fee funds have slightly less coverage than Vanguard's ETFs but are genuinely free. The catch: they are only available at Fidelity and cannot be transferred to another broker without selling.
Tip: Do not sacrifice diversification for a few basis points in fees. VTI at 0.03% holding 4,000 stocks is a better deal than a 0.00% fund holding 2,500 stocks. Breadth matters.
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Frequently Asked Questions
Are Fidelity's zero-fee funds really free?
Yes — FZROX and FZILX charge 0.00% in expense ratios. Fidelity makes money through securities lending and by keeping you on their platform. The trade-off: these are mutual funds (not ETFs), only available at Fidelity, and hold fewer stocks than Vanguard's equivalent ETFs.
How much do fees really cost over 30 years?
On $500/month invested for 30 years at 10%: a 0.03% fee leaves you with $986,000. A 0.50% fee leaves you with $905,000. A 1.00% fee leaves you with $830,000. The expensive fund costs you $156,000 — almost 19% of your potential wealth.
Is it worth switching from a 0.10% ETF to a 0.03% ETF?
On small balances (under $25,000), the savings are a few dollars per year — not worth the effort. On larger balances ($100,000+), the savings are $70+ per year and compound over decades. If you can switch without tax consequences (inside a Roth IRA or 401k), it is worth doing.
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Alex Harrington
CFA Level II Candidate, Finance & Economics
Alex Harrington is an independent ETF researcher and personal finance writer with over 8 years of experience analyzing exchange-traded funds. A CFA Level II candidate with a background in economics, Alex has reviewed 800+ ETFs and helped thousands of beginners build their first investment portfolios through clear, jargon-free education.
This content is for educational purposes only and does not constitute financial advice. Past performance does not guarantee future results. Consult a licensed financial advisor before making investment decisions.