Expense ratios are the silent killers of portfolio growth. Over a 30-year investing horizon, the difference between a 0.10% fee and a 0.50% fee can easily amount to tens of thousands of dollars in lost returns.
But what is considered a "good" or "average" expense ratio in 2026? To find out, we analyzed 104 of the largest and most popular ETFs on the market, comprising trillions of dollars in assets under management.
The Definitive Averages
The overall average ETF expense ratio is 0.40%, with a median of 0.27%. The significant gap between the mean and median indicates that a few highly specialized or actively managed funds skew the average upward. The majority of typical index funds sit well below the average.
Breakdown by Category
Not all ETFs are created equal. Passive index funds are engaged in a fierce "race to zero," while active managers and niche thematic funds still command a premium.
| Category | Avg Expense Ratio | Median Expense Ratio | Sample Count |
|---|---|---|---|
| Passive Index | 0.08% | 0.04% | 35 |
| Active | 0.45% | 0.35% | 19 |
| Thematic & Sector | 0.34% | 0.35% | 30 |
| Leveraged & Inverse | 1.02% | 0.95% | 20 |
As the data shows, Passive Index ETFs are remarkably cheap, averaging just 0.08%. If you are buying a broad-market S&P 500 or Total Stock Market fund, you should not be paying more than 0.05% today.
Historical Trend: A Decade of Dropping Fees
Over the past decade, the asset management industry has experienced massive fee compression. According to historical industry data, the average expense ratio for an equity mutual fund in the year 2000 was nearly 1.00%. By 2010, the proliferation of ETFs pushed that average closer to 0.70%.
Today, as our 2026 analysis shows, the overall average for ETFs is significantly lower, largely driven by the explosive growth of passive index funds which now routinely charge less than 0.05%. This "race to zero" has saved retail investors billions of dollars in aggregate, forcing even active managers to justify their fees with clear outperformance or highly specialized strategies.
The Issuer Race to Zero
The "Big Three" ETF issuers (Vanguard, iShares, and State Street), alongside competitors like Charles Schwab, have spent the last decade aggressively cutting fees to win assets. Here is how the top issuers stack up based on our sample:
| Issuer | Avg Expense Ratio |
|---|---|
| Charles Schwab | 0.04% |
| Vanguard | 0.04% |
| SPDR (State Street) | 0.13% |
| iShares (BlackRock) | 0.17% |
| Dimensional | 0.24% |
| JPMorgan | 0.29% |
| VanEck | 0.47% |
| Global X Funds | 0.64% |
| ARK Invest | 0.64% |
| Direxion | 0.97% |
| ProShares | 1.09% |
Interactive Tool: Is My Expense Ratio Good?
Enter the expense ratio of an ETF you own (or are considering buying) to see how it compares to the broader market and what percentile it falls into.
Impact Calculator: The Cost of Fees
See exactly how much your expense ratio is costing you over time.
Total Fees Paid:
Over years, this expense ratio costs you in total fees and lost compounding growth compared to a zero-fee portfolio.