Cheapest ETFs by Expense Ratio for 2026
The cheapest ETFs by expense ratio represent the most cost-efficient way to invest in the stock and bond markets. Over decades of compounding, even small differences in fees translate into thousands of dollars of savings, making expense ratio one of the most important factors in long-term investment success. The fee war among major ETF providers has driven costs to near zero for many core funds, creating an unprecedented opportunity for cost-conscious investors.
Among the cheapest broad-market funds, BIV from Vanguard offers intermediate-term bond exposure at a minimal expense ratio, providing diversified fixed income at rock-bottom cost. BNDX, also from Vanguard, delivers international bond exposure with currency hedging at an extremely competitive fee. SPTM from SPDR tracks the total US stock market at one of the lowest expense ratios available, competing head-to-head with Vanguard and BlackRock on cost.
When comparing the cheapest ETFs, it is important to remember that expense ratio is not the only cost. Bid-ask spreads, tracking error, and tax efficiency all contribute to the total cost of ownership. The cheapest ETF by expense ratio may not be the cheapest to own if it has wider spreads or poor tracking. That said, for the major index-tracking ETFs from providers like Vanguard, BlackRock, and SPDR, the total cost differences are negligible, and any of them will serve investors well as ultra-low-cost core holdings.
How We Rank
ETFs are ranked by expense ratio (lowest first). Only ETFs with $500M+ in assets are included. Data is updated daily.
| # | Symbol | Fund Name | AUM |
|---|---|---|---|
| 1 | CMU | MFS High Yield Municipal Trust | $2.50B |
| 2 | BKLC | BNY Mellon US Large Cap Core Equity ETF | $5.63B |
| 3 | BKAG | BNY Mellon Core Bond ETF | $2.26B |
| 4 | SPYM | State Street SPDR Portfolio S&P 500 ETF | $169.37B |
| 5 | BBUS | JPMorgan BetaBuilders U.S. Equity ETF | $9.11B |
| 6 | SPLG | SPDR Portfolio S&P 500 ETF | $95.72B |
| 7 | BND | Vanguard Total Bond Market ETF | $396.70B |
| 8 | VB | Vanguard Morningstar Small-Cap ETF | $183.40B |
| 9 | VTV | Vanguard Morningstar Value ETF | $256.50B |
| 10 | IVV | iShares Core S&P 500 ETF | $889.43B |
| 11 | VGSH | Vanguard Short-Term Treasury ETF | $34.70B |
| 12 | ITOT | iShares Core S&P Total U.S. Stock Market ETF | $96.61B |
| 13 | VOO | Vanguard S&P 500 ETF | $1.70T |
| 14 | SPDW | State Street SPDR Portfolio Developed World ex-US ETF | $41.92B |
| 15 | VGLT | Vanguard Long-Term Treasury ETF | $14.80B |
| 16 | BIV | Vanguard Intermediate-Term Bond ETF | $51.90B |
| 17 | SPSM | State Street SPDR Portfolio S&P 600 Small Cap ETF | $17.03B |
| 18 | STIP | iShares 0-5 Year TIPS Bond ETF | $16.09B |
| 19 | SCHA | Schwab U.S. Small-Cap ETF | $23.18B |
| 20 | SCMB | Schwab Municipal Bond ETF | $4.03B |
| 21 | VO | Vanguard Morningstar Mid-Cap ETF | $224.70B |
| 22 | VEA | Vanguard FTSE Developed Markets ETF | $315.00B |
| 23 | SPMD | State Street SPDR Portfolio S&P 400 Mid Cap ETF | $18.77B |
| 24 | SCHP | Schwab US TIPS ETF | $16.51B |
| 25 | BSV | Vanguard Short-Term Bond ETF | $70.60B |
What to Look For
Expense ratio is the primary metric on this page, but also consider the bid-ask spread, which adds to your effective cost each time you trade. Funds with higher AUM and daily volume tend to have tighter spreads. Tracking error measures how closely the ETF follows its benchmark after fees — the best cheap ETFs track their indices almost perfectly.
Tax efficiency is another hidden cost. ETFs are generally tax-efficient, but some structures and indices are more tax-friendly than others. Also compare the underlying indices — two ETFs with different expense ratios may track different benchmarks, making a direct cost comparison misleading unless the exposures are truly equivalent.
Which Cheapest ETFs by Expense Ratio Is Best for You?
SPTM provides total US stock market exposure at one of the lowest expense ratios in the industry. Competing directly with VTI and ITOT, SPTM holds over 1,500 US stocks spanning large, mid, and small caps. For investors at brokerages offering SPDR ETFs commission-free, SPTM is an outstanding choice for ultra-low-cost equity exposure.
BIV is one of the cheapest bond ETFs available, providing intermediate-term investment-grade bond exposure at minimal cost. Its focus on bonds with 5-10 year maturities creates a moderate duration profile suitable for core fixed income allocation. Vanguard's bond indexing expertise ensures tight tracking and efficient portfolio management.
BNDX stands out as one of the cheapest ways to access international bonds. It provides currency-hedged exposure to investment-grade bonds from developed markets outside the US, adding geographic diversification to a fixed income portfolio. The currency hedging removes exchange rate risk, making returns more predictable for US-based investors.
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