Vanguard ETF Expense Ratio Compared to Industry Averages
What happened
Vanguard's S&P 500 ETF charges an expense ratio of 0.03%. The Investment Company Institute (ICI) reported that the average expense ratio for equity mutual funds was 0.40% in 2025. The ICI also noted that index stock mutual funds averaged 0.05% in 2025, while actively managed U.S. stock funds averaged 0.64% in 2025.
From fool.com
Why it matters
The comparison highlights the significant difference between Vanguard's low cost and the higher fees charged by many mutual funds. The report notes that while the annual fee difference may seem small, the money pulled out by fees cannot compound and can grow to nearly the size of the original investment over three decades.
From fool.com
Who's involved
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- BlackRockSpeculative
Could face competitive pressure from Vanguard's ultra-low expense ratio, potentially affecting revenue in the asset management industry.