From 24/7 Wall St. · Ryne Mauck · · 50s
Vanguard's 0.03% Fee Costs More Than Competitors
State Street sells identical S&P 500 stocks for 33% less than Vanguard's VOO.
In brief
State Street sells identical S&P 500 stocks for 33% less than Vanguard's VOO. Vanguard's 0.03% fee for S&P 500 ETFs costs 33% more annually than State Street's 0.02% fee for the same stocks. Originally reported by 24/7 Wall St..
Vanguard's Fee War
Vanguard markets its s&p 500 fund as the fee war's final answer at three basis points.
State Street's New Fee
State street now sells the identical 500 stocks for two basis points.
Annual Cost Difference
Voo costs $3 a year per $10,000 versus spym's $2 a year per $10,000.
Long-Term Impact
The extra fee redirects $1,200 from your account to vanguard over two decades.
Hidden Fee Structures
Voo's tax-efficient structure costs 33% more than competitors with similar features.
Cheaper Alternatives
Spym and ivv hold identical stocks at one-third the fee of voo.
Here's the gist
Vanguard's 0.03% fee for S&P 500 ETFs costs 33% more annually than State Street's 0.02% fee for the same stocks.
