ETF Expense Ratios Compound into Long-Term Retirement Gaps

Small fees compound over long retirement horizons to create significant differences in final investor returns. Two funds tracking the same index can cost differently. The Vanguard S&P 500 ETF (VOO) charges an expense ratio of 0.03%, while the SPDR S&P 500 ETF Trust (SPY) charges 0.0945%. U.S.-listed ETFs held about $14.21 trillion in assets as of early 2026. These costs are part of a broader set of factors including liquidity and intended use that affect long-term outcomes.