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When the markets are regularly putting points on the board, it’s probably time to bring clients back to the boring, but important, matter of expenses.

John Bogle, the founder of Vanguard, famously said that a 2% expense ratio (high in today’s world) can cost investors as much as two-thirds of their returns, assuming market returns of 7% over the course of 50 years.

Conscious of the pernicious effects of fees, we researched the funds that offered solid performance at a low price. We screened based on these three requirements: 1) three-year returns of 10% or more, 2) expense ratios of 10 basis points or less, and 3) assets of $500 million or more.

The funds are ranked based on three-year returns. All data from Morningstar.
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23. Schwab US Broad Market ETF (SCHB)

3-Yr. Return: 10.06%
Expense Ratio: 0.03%
Fund Size (millions): $8,816
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22. Vanguard Utilities ETF (VPU)

3-Yr. Return: 10.15%
Expense Ratio: 0.10%
Fund Size (millions): $3,185
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21. Schwab US Large-Cap ETF (SCHX)

3-Yr. Return: 10.25%
Expense Ratio: 0.03%
Fund Size (millions): $8,621
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20. Vanguard Large-Cap ETF (VV)

3-Yr. Return: 10.26%
Expense Ratio: 0.06%
Fund Size (millions): $15,222
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19. iShares Core S&P Total US Stock Mkt (ITOT)

3-Yr. Return: 10.32%
Expense Ratio: 0.05%
Fund Size (millions): $8,476
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18. SPDR S&P 500 ETF (SPY)

3-Yr. Return: 10.36%
Expense Ratio: 0.09%
Fund Size (millions): $238,588
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17. Northern Stock Index (NOSIX)

3-Yr. Return: 10.36%
Expense Ratio: 0.10%
Fund Size (millions): $7,458
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16. Schwab S&P 500 Index (SWPPX)

3-Yr. Return: 10.37%
Expense Ratio: 0.09%
Fund Size (millions): $25,979
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15. Fidelity 500 Index Investor (FUSEX)

3-Yr. Return: 10.38%
Expense Ratio: 0.09%
Fund Size (millions): $118,541
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14. DFA US Large Company (DFUSX)

3-Yr. Return: 10.41%
Expense Ratio: 0.08%
Fund Size (millions): $7,450
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13. iShares Core S&P 500 (IVV)

3-Yr. Return: 10.42%
Expense Ratio: 0.07%
Fund Size (millions): $108,898
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12. Vanguard Mega Cap ETF (MGC)

3-Yr. Return: 10.43%
Expense Ratio: 0.07%
Fund Size (millions): $1,296
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11. BlackRock S&P 500 Index (WFSPX)

3-Yr. Return: 10.43%
Expense Ratio: 0.04%
Fund Size (millions): $10,903
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10. Vanguard Consumer Staples ETF (VDC)

3-Yr. Return: 10.46%
Expense Ratio: 0.10%
Fund Size (millions): $4,385
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9. Fidelity Series 100 Index (FOHIX)

3-Yr. Return: 10.55%
Expense Ratio: 0.10%
Fund Size (millions): $3,386
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8. Vanguard Tax-Managed Small Cap Adm (VTMSX)

3-Yr. Return: 10.71%
Expense Ratio: 0.09%
Fund Size (millions): $5,292
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7. Vanguard Health Care ETF (VHT)

3-Yr. Return: 11.41%
Expense Ratio: 0.10%
Fund Size (millions): $7,007
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6. Schwab US Large-Cap Growth ETF (SCHG)

3-Yr. Return: 11.56%
Expense Ratio: 0.07%
Fund Size (millions): $4,039
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5. iShares Core S&P US Growth (IUSG)

3-Yr. Return: 11.63%
Expense Ratio: 0.08%
Fund Size (millions): $2,153
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4. Vanguard Mega Cap Growth ETF (MGK)

3-Yr. Return: 11.99%
Expense Ratio: 0.07%
Fund Size (millions): $2,854
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3. Vanguard Financials ETF (VFH)

3-Yr. Return: 12.48%
Expense Ratio: 0.10%
Fund Size (millions): $6,193
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2. Vanguard Consumer Discretionary ETF (VCR)

3-Yr. Return: 12.58%
Expense Ratio: 0.10%
Fund Size (millions): $2,425
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1. Vanguard Information Technology ETF (VGT)

3-Yr. Return: 16.82%
Expense Ratio: 0.10%
Fund Size (millions): $13,321
Lee Conrad
Former senior editor, Employee Benefit News and Employee Benefit Adviser
Investments Investment insights Mutual funds ETFs Morningstar Vanguard Fidelity Investments iShares
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