The ETF Fee Cheat Sheet
The fair expense ratio for every kind of ETF, the cheap default in each category, and exactly what overpaying costs you over time.
Fees are the one ETF cost you fully control, and the one most people never check. This cheat sheet gives you the fair price for each type of fund, the cheap default worth owning, and the line where you're paying too much. Save it, print it, and never overpay for plain-vanilla exposure again.
What you should pay, by category
Green means the fair, cheap default. Amber is reasonable for a niche. Red is where you're usually overpaying for exposure you can get cheaper.
| Category | Cheap default | Fair fee | Overpaying above |
|---|---|---|---|
| Total US market | VTI / ITOT | 0.03% | 0.20% |
| S&P 500 | VOO / IVV | 0.03% | 0.10% |
| Total international | VXUS | 0.05–0.08% | 0.25% |
| Total US bond | BND / AGG | 0.03% | 0.15% |
| Dividend | SCHD / VYM | 0.06% | 0.35% |
| Small cap | VB / IJR | 0.05–0.06% | 0.25% |
| Nasdaq-100 | QQQM | 0.15% | 0.20%+ |
| Sector (e.g. tech) | XLK | 0.09% | 0.40% |
| REIT | VNQ | 0.13% | 0.40% |
| Short-term Treasuries (cash) | SGOV | 0.09% | 0.20% |
The cheap lane vs. the expensive lane
✅ Cheap lane (own these)
- Broad index funds: 0.02–0.10%
- A full 3-fund portfolio: under 0.05% blended
- Plain, market-cap-weighted, huge and liquid
- Examples: VTI, VOO, VXUS, BND, SCHD
⚠️ Expensive lane (know what you pay)
- Thematic / active: 0.35–0.95% (ARKK ~0.75%)
- Options-income: ~0.35% (JEPI, JEPQ)
- Leveraged: ~0.75–0.95% (SOXL, TQQQ)
- Fine as small satellites — never as your cheap core
What overpaying actually costs
Total fees on $10,000 over 30 years
Growing at 8% a year. The percentage looks tiny; the dollars don't, because the fee compounds on a growing balance for decades.
Figures are rounded illustrations, not a guarantee. The exact number depends on returns and timing — run your own in the fee calculator. See the full math in what ETF fees actually cost.
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How to use this cheat sheet
Match the fund you're eyeing to its category, check its expense ratio against the fair fee here, and ask one question: am I getting something the cheap default doesn't give me? Sometimes yes — a specific strategy, a tax structure, a niche exposure. Usually no. For core, plain-vanilla holdings, the cheapest broad fund wins almost every time, because the fee is certain and the outperformance is not.
Common questions
What is a good expense ratio for an ETF?
For a broad index ETF, 0.03% to 0.10% is good, and the cheapest broad funds charge 0.02% to 0.03% (VTI 0.03%, VOO 0.03%, SPYM 0.02%). Above about 0.20% for a plain broad index fund is expensive. Niche, sector, and international funds fairly cost a little more (~0.05% to 0.15%); thematic, active, and leveraged funds run 0.35% to 0.95%.
How much do ETF fees actually cost over time?
The fee is charged on your balance every year, so it compounds. On $10,000 growing at 8% for 30 years, a 0.03% fund costs about $400 in total fees while a 0.75% fund costs roughly $9,500 — and leaves you with far less. The percentage looks tiny; the dollars are large because it applies to a growing balance for decades.
What is the cheapest ETF?
Among broad, mainstream funds, the cheapest sit at 0.02% to 0.03%: SPYM (0.02%), VTI and SCHB (0.03%), VOO and IVV (0.03%), and BND and AGG (0.03%). A complete three-fund portfolio can be built for a blended cost under 0.05% a year.