5 Best Low Cost ETFs

In this article, we discuss 5 best low cost ETFs. If you want to see the top 15 low cost ETFs, head over to 15 Best Low Cost ETFs.

5. Vanguard Russell 3000 Index Fund ETF (NASDAQ:VTHR)

5-Year Share Price Performance as of April 15: 70.37%

The Vanguard Russell 3000 Index Fund ETF (NASDAQ:VTHR) seeks to mirror the performance of the Russell 3000 Index, which represents 98% of the entire US market. The ETF was launched on September 20, 2010. As of March 31, 2024, it has net assets amounting to $3.5 billion, with a portfolio of 2,917 stocks. The expense ratio stands at 0.10% as of December 22, 2023, and it is one of the best low cost ETFs.

Meta Platforms, Inc. (NASDAQ:META) is one of the top holdings of the Vanguard Russell 3000 Index Fund ETF (NASDAQ:VTHR). Meta Platforms, Inc. (NASDAQ:META) is one of the top firms that stand to gain significantly if legislation targeting TikTok’s US operations is enacted.

As per Insider Monkey’s fourth quarter database, 242 hedge funds were bullish on Meta Platforms, Inc. (NASDAQ:META), up from 234 funds in the preceding quarter. Rajiv Jain’s GQG Partners held a significant position in the company, with 11.15 million shares worth $3.95 billion.

Sequoia Fund stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its fourth quarter 2023 investor letter:

“Two additional trims, in Meta Platforms, Inc. (NASDAQ:META) and Carmax, were more substantive in nature. When Meta’s stock declined in 2022, we judged it to be significantly mispriced and held our ground through the bottom. We trimmed the position serially last year as the stock soared because we were wary of holding a large position exposed to significant regulatory risks, particularly in Europe. We are comfortable owning Meta at today’s much-reduced weighting and current valuation. The smaller position size reflects our updated assessment of the balance of long-term risk versus reward.”

4. Vanguard Russell 1000 Index Fund ETF (NASDAQ:VONE)

5-Year Share Price Performance as of April 15: 73.04%

The Vanguard Russell 1000 Index Fund ETF (NASDAQ:VONE), placed among the best low cost ETFs, invests in stocks from the Russell 1000 Index, which includes a range of large US companies. The ETF was introduced on September 20, 2010. As of March 31, 2024, it has net assets of $7 billion and holds 1,007 stocks. Its expense ratio is 0.08% as of December 22, 2023.

Alphabet Inc. (NASDAQ:GOOGL) is one of the largest holdings of the Vanguard Russell 1000 Index Fund ETF (NASDAQ:VONE). On March 22, Alphabet Inc. (NASDAQ:GOOGL)’s stock rose after Wedbush Securities included the company in its Best Ideas List.

According to Insider Monkey’s fourth quarter database, 214 hedge funds were bullish on Alphabet Inc. (NASDAQ:GOOGL), compared to the previous quarter when 221 funds had invested in the stock.

Pershing Square Holdings stated the following regarding Alphabet Inc. (NASDAQ:GOOGL) in its fourth quarter 2023 investor letter:

“In early 2023, we initiated an investment in Alphabet Inc. (NASDAQ:GOOGL), the parent company of Google, at a highly attractive valuation during a period when apprehension about the company’s competitive positioning in AI overshadowed the high-quality nature of its business and strong growth prospects.

Since we initiated our position, the company has delivered impressive operating results. With two of the highest ROI and most resilient ad formats in Search and YouTube, Google occupies a dominant position in the secularly fast-growing digital advertising market. As the digital advertising market recovered over the course of the year, revenue growth in Google’s advertising business accelerated from 3% in Q1 2023 to 10% in Q4 2023. Moreover, the company realized significant progress on its substantial margin expansion opportunity and maintained a robust capital return program. In 2023, operating profit margins expanded by approximately 225 basis points (bps), excluding one-time severance and real estate charges, as the Cloud segment reached breakeven profitability. We expect continued cost control, automation efficiencies, and operating leverage in under-earning segments (Cloud & YouTube) to sustain margin expansion as Google invests behind AI initiatives.

The company is using its ample free cash flow to repurchase approximately 4% of its outstanding shares on an annual basis…”

3. iShares Core S&P 500 ETF (NYSE:IVV)

5-Year Share Price Performance as of April 15: 74.08%

The iShares Core S&P 500 ETF (NYSE:IVV) aims to replicate the performance of the S&P 500 Index. Launched on May 15, 2000, IVV is one of the best low cost ETFs. As of April 12, 2024, it holds a total of $440.07 billion in assets, with a portfolio consisting of 503 stocks. It features an expense ratio of 0.03%.

Eli Lilly and Company (NYSE:LLY) is one of the top holdings of the iShares Core S&P 500 ETF (NYSE:IVV). It is a global pharmaceutical company that focuses on discovering, developing, and marketing human pharmaceuticals. On March 15, Eli Lilly and Company (NYSE:LLY) made headlines as its weight loss drug Zepbound had outperformed Novo Nordisk A/S (NYSE:NVO)’s rival drug Wegovy in terms of new prescriptions in the US.

According to Insider Monkey’s fourth quarter database, 102 hedge funds were bullish on Eli Lilly and Company (NYSE:LLY), same as the last quarter. Ken Fisher’s Fisher Asset Management is the largest shareholder of the company, with 4.54 million shares worth $2.65 billion.

Aristotle Atlantic Core Equity Strategy stated the following regarding Eli Lilly and Company (NYSE:LLY) in its fourth quarter 2023 investor letter:

“Eli Lilly and Company (NYSE:LLY) is a leading pharmaceutical company that develops diabetes, oncology, immunology and neuroscience medicines. The company generates over half of its revenue in the U.S. from its top-selling drugs Trulicity, Verzenio and Taltz. The company operates in a single business segment, Human pharmaceutical products.

Eli Lilly has a deep pipeline in treatment areas focused on metabolic disorders, oncology, immunology and central nervous system disorders. Currently, there are two phase three assets, Orforglipron, an oral GLP-1 and retatrutide, a triple incretin agonist, which have the potential to expand upon the potential success of Mounjaro. We believe that Mounjaro has the potential to commercialize beyond type 2 diabetes and obesity, potentially in the areas mentioned above of heart disease, sleep apnea, fatty liver disease and chronic kidney disease. We belief the premium valuation is supported by this outsized growth profile.”

2. iShares Core S&P U.S. Growth ETF (NASDAQ:IUSG)

5-Year Share Price Performance as of April 15: 85.53%

Ranked 2nd on our list of best low cost ETFs, the iShares Core S&P U.S. Growth ETF (NASDAQ:IUSG) aims to reflect the performance of the S&P 900 Growth Index, which includes large and mid-sized US companies showing growth potential. The ETF was introduced on July 24, 2000. As of April 12, 2024, its net assets total $16.87 billion, and it holds a portfolio of 472 stocks. The expense ratio stands at 0.04%.

Broadcom Inc. (NASDAQ:AVGO) is among the largest holdings of the iShares Core S&P U.S. Growth ETF (NASDAQ:IUSG). On March 8, Broadcom Inc. (NASDAQ:AVGO) declared a $5.25 per share quarterly dividend, in-line with previous. The dividend was paid to shareholders on March 29.

According to Insider Monkey’s fourth quarter database, 91 hedge funds were bullish on Broadcom Inc. (NASDAQ:AVGO), up from 87 funds in the preceding quarter.

Carillon Eagle Growth & Income Fund stated the following regarding Broadcom Inc. (NASDAQ:AVGO) in its fourth quarter 2023 investor letter:

“Broadcom Inc. (NASDAQ:AVGO) traded higher after closing on its acquisition of VMware. The company also announced earnings that were relatively in line with estimates with some benefit of better operating expenses. The stock appears to be one of the first real beneficiaries of generative artificial intelligence (AI) with meaningful revenue expected to show up in 2024.”

1. Vanguard Russell 1000 Growth Index Fund ETF (NASDAQ:VONG)

5-Year Share Price Performance as of April 15: 110.31%

Vanguard Russell 1000 Growth Index Fund ETF (NASDAQ:VONG) invests in stocks from the Russell 1000 Growth Index, which mainly comprises growth stocks from large US companies. Vanguard Russell 1000 Growth Index Fund ETF (NASDAQ:VONG) is one of the best low cost ETFs. It was launched on September 20, 2010. As of March 31, 2024, the fund’s net assets amount to $26.3 billion, and it holds a portfolio of 440 stocks. Its expense ratio is 0.08% as of December 22, 2023.

Tesla, Inc. (NASDAQ:TSLA) is one of the top holdings of the Vanguard Russell 1000 Growth Index Fund ETF (NASDAQ:VONG). On March 26, Tesla, Inc. (NASDAQ:TSLA) stock rose in value following a report that officials from the Industry Ministry had reached out to Tesla regarding the possibility of manufacturing electric trucks in Italy.

As per Insider Monkey’s fourth quarter database, 82 hedge funds were bullish on Tesla, Inc. (NASDAQ:TSLA), compared to 81 funds in the prior quarter. Philippe Laffont’s Coatue Management held a significant position in the firm, with 4.06 million shares valued at $1.01 billion.

Alger Spectra Fund stated the following regarding Tesla, Inc. (NASDAQ:TSLA) in its fourth quarter 2023 investor letter:

“Tesla, Inc. (NASDAQ:TSLA) is an electric vehicle manufacturer with a significant technological lead in its large and rapidly growing addressable market. Tesla is a transportation company that is setting the pace for industry innovation, in our view. During the quarter, the company reported weaker-than-expected fiscal third quarter earnings, where gross margins were negatively impacted by factory downtime and ramping production volumes at new manufacturing plants. However, the company noted that they remain confident by the amount of data that Tesla’s established and growing fleet of vehicles has gathered, which may bode well for the company’s full self-driving capabilities.”

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