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ETF Expense Ratios 2026: Compare VOO, SPY, IVV & 86 ETFs —

Last Updated: March 2026

Expense Ratios: Cheapest to Most Expensive

Average Expense Ratio by Provider

Key Findings

Lowest Expense Ratio S&P 500 ETFs: SPY vs VOO vs IVV vs SPLG

All four ETFs track the same S&P 500 index and deliver nearly identical returns. The only meaningful difference is cost. Here's how they compare in 2026:

FeatureSPLGVOOIVVSPY
Expense Ratio0.02%0.03%0.03%0.0945%
Annual Cost per $100K$20$30$30$94.50
30-Year Cost on $100K (7% growth)~$1,900~$2,800~$2,800~$8,800
AUM$48B$560B$530B$590B
Dividend Yield1.3%1.3%1.3%1.2%
IssuerState Street (SPDR)VanguardBlackRock (iShares)State Street (SPDR)
Inception2005201020001993
StructureOpen-end ETFOpen-end ETFOpen-end ETFUnit Investment Trust
Best ForCost-conscious buy-and-holdLong-term core holdingLong-term core holdingDay trading & options

Bottom line: SPLG is the cheapest S&P 500 ETF in 2026 at 0.02%. VOO and IVV are nearly as cheap at 0.03%. SPY costs 3-5x more due to its legacy unit investment trust structure, which prevents fee reductions. For long-term investors, SPLG or VOO will save thousands over a 30-year horizon. SPY remains the best choice for active traders who need maximum liquidity and tight options spreads.

Vanguard vs Schwab Expense Ratios: Head-to-Head 2026

Vanguard and Schwab are the two cheapest ETF providers. Here's how their competing funds stack up:

CategoryVanguard ETFExpense RatioSchwab ETFExpense RatioWinner
Total US MarketVTI0.03%SCHB0.03%Tie
Large-Cap GrowthVUG0.04%SCHG0.04%Tie
Large-Cap ValueVTV0.04%SCHV0.04%Tie
Small-CapVB0.05%SCHA0.04%Schwab
International DevelopedVEA0.05%SCHF0.06%Vanguard
DividendVIG (0.05%) / VYM (0.06%)0.05-0.06%SCHD0.06%Vanguard (VIG)
US Aggregate BondBND0.03%SCHZ0.03%Tie
REITVNQ0.12%SCHH0.07%Schwab
Average across lineup0.055%0.046%Schwab

Verdict: Schwab's average expense ratio (0.046%) narrowly beats Vanguard (0.055%), but the differences are razor-thin in most categories. Both providers offer excellent low-cost options. Vanguard has a wider ETF lineup (17 vs 8 in our index) and significantly larger AUM, which may offer slight advantages in tracking accuracy and liquidity. For most investors, either provider is an excellent choice — the difference of 0.01% on $100K is just $10/year.

Average Expense Ratio for Thematic & Specialty ETFs in 2026

Thematic ETFs — funds targeting specific trends like semiconductors, clean energy, AI, or cybersecurity — charge significantly more than broad-market index funds. Here's what to expect:

ETFThemeExpense RatioAUMComparable Index Fund Cost
QQQNasdaq-100 / Large-Cap Tech0.20%$310BQQQM: 0.15%
QQQMNasdaq-100 (cheaper share class)0.15%$35B
SOXXSemiconductors0.35%$14BSMH: 0.35%
SMHSemiconductors0.35%$25BSOXX: 0.35%
ICLNClean Energy0.40%$2.5BNo cheaper alternative
HACKCybersecurity0.60%$1.8BNo cheaper alternative
ARKKDisruptive Innovation (Active)0.75%$5BNo passive equivalent
Average Thematic ETF Expense Ratio0.40%8-13x more than broad-market ETFs (0.03%)

Key takeaway: The average expense ratio for thematic ETFs in 2026 is approximately 0.40%, compared to just 0.03% for core broad-market funds. This premium reflects higher index licensing fees, smaller scale, more frequent rebalancing, and active management in some cases. If you want Nasdaq-100 exposure, always choose QQQM (0.15%) over QQQ (0.20%) for long-term holding — same index, lower cost.

Full ETF Comparison Table

Ticker Fund Name Issuer Expense Ratio AUM ($B) Category Div Yield Index Tracked Inception

Frequently Asked Questions

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 Ratios 2026." Published March 9, 2026. Updated March 16, 2026. https://westmountfundamentals.com/etf-expense-ratios
This site provides data for informational purposes only. Not investment advice.

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