ETFs vs. Mutual Funds: Vanguard ETF Expense Ratios Compared

In 2027, the author plans to increase investments in ETFs compared to mutual funds and individual stocks. The Vanguard S&P 500 ETF (VOO) has an expense ratio of 0.03%, while the Vanguard 500 Mutual Fund has an expense ratio of 0.04%, making the mutual fund about 33% more expensive. ETFs offer lower costs, minimal capital gains distributions, and all-day trading capabilities, appealing to both passive and active investors. This information is vital for ordinary investors as it highlights a cost-effective investment strategy with ETFs.