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As of 2024, exchange-traded funds (ETFs) in the U.S. hold $10.3 trillion in assets, with the average expense ratio for index equity ETFs at 0.14%. Vanguard’s S&P 500 ETF, NYSEMKT: VOO, offers an industry-low fee of 0.03%, translating to just $3 annually on a $10,000 investment. This drastically reduces investor costs and helps retain 97% of returns over decades.
Vanguard’s offerings include the Vanguard Growth ETF (NYSEMKT: VUG) with a 0.04% expense ratio, delivering nearly 25% annual returns over the past three years, and the Vanguard Information Technology ETF (NYSEMKT: VGT), which boasts an annualized return of 27% with an expense ratio of 0.09%. Furthermore, the Vanguard Real Estate ETF (NYSEMKT: VNQ) provides REIT exposure at 0.13%, yielding about 3.5%—nearly triple the S&P 500’s yield.
The Vanguard Small-Cap Value ETF (NYSEMKT: VBR) charges 0.07% and accesses 835 companies trading at discounted valuations, aiming for better risk-adjusted returns compared to large-cap growth stocks. Each of these funds represents a strategic allocation for various investment strategies while maintaining low costs.
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