In the world of index funds and exchange-traded funds, Vanguard is often viewed as the low-cost leader, but plenty of other fund issuers are staking their claims to be friendly to investors when it comes to low fees.
When it comes to sector ETFs, Fidelity is the low-cost leader. In fact, Fidelity’s lineup of 11 sector ETFs feature the lowest fees of any group of sector ETFs. Yes, even cheaper than Vanguard’s sector ETFs. Each of Fidelity’s sector ETFs, one for each of the 11 sectors represented in the S&P 500, cost 0.084% per year, or $8.40 on a $10,000 investment.
Data confirm that saving on fees has a significant impact on investors’ long-term returns. Assuming an average annual return of 4% with fees of 0.25% per year on $10,000 investment, that position will be worth $210,000 in 20 years compared to $180,000 on an investment with a 1% annual fee, according to the Securities and Exchange Commission.
Investors looking to get tactical while accessing some high-flying sectors can consider the following low-fee Fidelity Sector ETFs. As was mentioned earlier, all of these ETFs charge 0.084% per year.