When folks hunt for the best ETFs to buy, many times they forget one important metric: the expense ratio. In fact, The New York Times ran an article in October discussing the erosive effect of expenses on a portfolio’s value. And the story was hardly news.
Instead, investment experts have beaten expense ratio warnings to death for some time. If you don’t know by now that a high expense ratio hurts your chances of long-term portfolio success … well … I guess enjoy your blissful ignorance.
For those that care, I’m going to dig up the best ETFs that boast low expense ratios to build a sensible, cheap portfolio.
I won’t just pick the best ETFs to consider individually, but will include funds that have little overlap between holdings, a minimal amount of turnover (about 25% or less annually) and, of course, a management expense ratio of 0.10% or lower.
Take a look at the five best ETFs for bargain hunters that love low expense ratios.