Compare
| Factor | Why It Matters | How to Check |
|---|---|---|
| Expense Ratio | Lower = more of the return stays with you | Listed in fund details |
| Tracking Error | How closely it follows the index | Compare 1-year return to benchmark |
| Liquidity | Higher volume = tighter spreads | Check daily average volume |
| Holdings Count | Broader = more diversified | Listed in holdings breakdown |
| Total Assets | Larger funds are more stable | Listed in fund details |
Try it
Compare SPY vs VOO. Both track the S&P 500. Look at expense ratio, volume, and total assets. Which would you choose?
Check-in
ETF A has 0.03% expense ratio and $300B in assets. ETF B has 0.75% expense ratio and $5B in assets. Both track the same index. Which is likely better?
Key insight
Check your understanding
Sit with the ideas.
Two ETFs track the S&P 500. ETF A has an expense ratio of 0.03%, tracks the index within 0.04%, and trades $30B per day. ETF B has an expense ratio of 0.20%, tracks within 0.25%, and trades $100M per day. For a long-term buy-and-hold investor, which is likely better?
Why: