Top funds over 3 years with lowest expenses
May 3, 2017 4:03 PM
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.
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.
23. Schwab US Broad Market ETF (SCHB)
3-Yr. Return: 10.06%
Expense Ratio: 0.03%
Fund Size (millions): $8,816
Expense Ratio: 0.03%
Fund Size (millions): $8,816
22. Vanguard Utilities ETF (VPU)
3-Yr. Return: 10.15%
Expense Ratio: 0.10%
Fund Size (millions): $3,185
Expense Ratio: 0.10%
Fund Size (millions): $3,185
21. Schwab US Large-Cap ETF (SCHX)
3-Yr. Return: 10.25%
Expense Ratio: 0.03%
Fund Size (millions): $8,621
Expense Ratio: 0.03%
Fund Size (millions): $8,621
20. Vanguard Large-Cap ETF (VV)
3-Yr. Return: 10.26%
Expense Ratio: 0.06%
Fund Size (millions): $15,222
Expense Ratio: 0.06%
Fund Size (millions): $15,222
19. iShares Core S&P Total US Stock Mkt (ITOT)
3-Yr. Return: 10.32%
Expense Ratio: 0.05%
Fund Size (millions): $8,476
Expense Ratio: 0.05%
Fund Size (millions): $8,476
18. SPDR S&P 500 ETF (SPY)
3-Yr. Return: 10.36%
Expense Ratio: 0.09%
Fund Size (millions): $238,588
Expense Ratio: 0.09%
Fund Size (millions): $238,588
17. Northern Stock Index (NOSIX)
3-Yr. Return: 10.36%
Expense Ratio: 0.10%
Fund Size (millions): $7,458
Expense Ratio: 0.10%
Fund Size (millions): $7,458
16. Schwab S&P 500 Index (SWPPX)
3-Yr. Return: 10.37%
Expense Ratio: 0.09%
Fund Size (millions): $25,979
Expense Ratio: 0.09%
Fund Size (millions): $25,979
15. Fidelity 500 Index Investor (FUSEX)
3-Yr. Return: 10.38%
Expense Ratio: 0.09%
Fund Size (millions): $118,541
Expense Ratio: 0.09%
Fund Size (millions): $118,541
14. DFA US Large Company (DFUSX)
3-Yr. Return: 10.41%
Expense Ratio: 0.08%
Fund Size (millions): $7,450
Expense Ratio: 0.08%
Fund Size (millions): $7,450
13. iShares Core S&P 500 (IVV)
3-Yr. Return: 10.42%
Expense Ratio: 0.07%
Fund Size (millions): $108,898
Expense Ratio: 0.07%
Fund Size (millions): $108,898
12. Vanguard Mega Cap ETF (MGC)
3-Yr. Return: 10.43%
Expense Ratio: 0.07%
Fund Size (millions): $1,296
Expense Ratio: 0.07%
Fund Size (millions): $1,296
11. BlackRock S&P 500 Index (WFSPX)
3-Yr. Return: 10.43%
Expense Ratio: 0.04%
Fund Size (millions): $10,903
Expense Ratio: 0.04%
Fund Size (millions): $10,903
10. Vanguard Consumer Staples ETF (VDC)
3-Yr. Return: 10.46%
Expense Ratio: 0.10%
Fund Size (millions): $4,385
Expense Ratio: 0.10%
Fund Size (millions): $4,385
9. Fidelity Series 100 Index (FOHIX)
3-Yr. Return: 10.55%
Expense Ratio: 0.10%
Fund Size (millions): $3,386
Expense Ratio: 0.10%
Fund Size (millions): $3,386
8. Vanguard Tax-Managed Small Cap Adm (VTMSX)
3-Yr. Return: 10.71%
Expense Ratio: 0.09%
Fund Size (millions): $5,292
Expense Ratio: 0.09%
Fund Size (millions): $5,292
7. Vanguard Health Care ETF (VHT)
3-Yr. Return: 11.41%
Expense Ratio: 0.10%
Fund Size (millions): $7,007
Expense Ratio: 0.10%
Fund Size (millions): $7,007
6. Schwab US Large-Cap Growth ETF (SCHG)
3-Yr. Return: 11.56%
Expense Ratio: 0.07%
Fund Size (millions): $4,039
Expense Ratio: 0.07%
Fund Size (millions): $4,039
5. iShares Core S&P US Growth (IUSG)
3-Yr. Return: 11.63%
Expense Ratio: 0.08%
Fund Size (millions): $2,153
Expense Ratio: 0.08%
Fund Size (millions): $2,153
4. Vanguard Mega Cap Growth ETF (MGK)
3-Yr. Return: 11.99%
Expense Ratio: 0.07%
Fund Size (millions): $2,854
Expense Ratio: 0.07%
Fund Size (millions): $2,854
3. Vanguard Financials ETF (VFH)
3-Yr. Return: 12.48%
Expense Ratio: 0.10%
Fund Size (millions): $6,193
Expense Ratio: 0.10%
Fund Size (millions): $6,193
2. Vanguard Consumer Discretionary ETF (VCR)
3-Yr. Return: 12.58%
Expense Ratio: 0.10%
Fund Size (millions): $2,425
Expense Ratio: 0.10%
Fund Size (millions): $2,425
1. Vanguard Information Technology ETF (VGT)
3-Yr. Return: 16.82%
Expense Ratio: 0.10%
Fund Size (millions): $13,321
Expense Ratio: 0.10%
Fund Size (millions): $13,321
