Statistics · 2026 · ETFs
ETF vs. Mutual Fund Statistics (2026)
The 28 ETFs WealthyBud tracks charge a median expense ratio of 0.09%, and six tie for the cheapest at just 0.03%, as of 2026-07-10. The average actively managed equity mutual fund charges 0.40% — over 13 times more — per the Investment Company Institute. That gap helps explain why long-term mutual funds saw $1.22 trillion in 2025 net outflows while ETFs pulled in a record $1.50 trillion.
Key takeaways
- The average actively managed equity mutual fund charged 0.40% in 2025, versus 0.14% for the average index equity ETF — nearly 3× cheaper — per the Investment Company Institute.
- WealthyBud’s own 28 tracked ETFs undercut even that ICI average: the median expense ratio is 0.09%, and 6 funds — AGG, BND, IVV, VEA, VOO, VTI — tie for the cheapest at 0.03%.
- 60.7% of WealthyBud’s tracked ETFs charge under 0.10%, and 78.6% charge under 0.20%, as of 2026-07-10.
- On a $10,000 position, the fee gap between the average active equity mutual fund and WealthyBud’s cheapest tracked ETF works out to about $37 a year.
- Long-term mutual funds — equity, hybrid and bond combined — had a net outflow of $1.22 trillion in 2025, per the Investment Company Institute, while U.S. ETFs pulled in a record $1.50 trillion in net inflows, per ETFGI.
- Mutual funds still hold more money — $31.4 trillion versus $13.43 trillion for ETFs at year-end 2025 — and three issuers (iShares, Vanguard, State Street) manage 72.1% of that ETF total, per ETFGI.
How do ETF and mutual fund expense ratios compare?
The average actively managed equity mutual fund charged 0.40% in 2025, versus 0.14% for the average index equity ETF. Bond funds show the same pattern: 0.36% for the average bond mutual fund versus 0.09% for the average index bond ETF, per the Investment Company Institute.
1. Average equity mutual fund expense ratio: 0.40%
The average actively managed equity mutual fund charged 0.40% of assets in 2025, unchanged from 2024, per the Investment Company Institute’s Trends in the Expenses and Fees of Funds, 2025, published March 25, 2026.
2. Average index equity ETF expense ratio: 0.14%
Index equity ETFs averaged 0.14% in 2025, also unchanged year over year — nearly a third of the average equity mutual fund’s fee, per the same ICI report.
3. Average bond mutual fund expense ratio: 0.36%
The average bond mutual fund charged 0.36% in 2025, down 2 basis points from 2024, per the same ICI report.
4. Average index bond ETF expense ratio: 0.09%
Index bond ETFs averaged 0.09% in 2025, down 1 basis point from 2024 — a quarter of the average bond mutual fund’s fee, per the same ICI report.
| Fund type | Mutual fund average | ETF average |
|---|---|---|
| Equity funds | 0.40% | 0.14% (index) |
| Bond funds | 0.36% | 0.09% (index) |
| WealthyBud’s 28 tracked ETFs | — | 0.09% median · 0.03% cheapest |
How cheap are the ETFs WealthyBud tracks?
Among the 28 ETFs WealthyBud tracks, the median expense ratio is 0.09%, and 6 funds tie for the cheapest at 0.03%. 60.7% of the 28 tracked funds charge under 0.10%, and 78.6% charge under 0.20%, as of 2026-07-10 (WealthyBud data · 28 ETFs).
5. Median expense ratio across 28 tracked ETFs: 0.09%
Half of WealthyBud’s 28 tracked ETFs charge 0.09% or less as of 2026-07-10; the mean is higher, at 0.14%, pulled up by a handful of pricier sector and bond funds (WealthyBud data · 28 ETFs).
6. 6 funds tie for the cheapest: 0.03%
AGG, BND, IVV, VEA, VOO, VTI all charge 0.03% — the lowest expense ratio among WealthyBud’s 28 tracked ETFs, spanning both broad stock-index and core bond-index funds (WealthyBud data · 2026-07-10).
7. 60.7% charge under 0.10%; 78.6% charge under 0.20%
17 of the 28 ETFs WealthyBud tracks charge less than 0.10% and 22 charge less than 0.20% — both well below the 0.40% average equity mutual fund fee; the priciest of all 28 still charges only 0.49% (WealthyBud data).
- AGG (iShares Core US Aggregate Bond ETF), a US total bond fund tracking the Bloomberg US Aggregate Bond, charges 0.03%.
- BND (Vanguard Total Bond Market ETF), a US total bond fund tracking the Bloomberg US Aggregate Float Adjusted, charges 0.03%.
- IVV (iShares Core S&P 500 ETF), a US large-cap blend fund tracking the S&P 500, charges 0.03%.
- VEA (Vanguard FTSE Developed Markets ETF), a Developed intl fund tracking the FTSE Developed All Cap ex US, charges 0.03%.
- VOO (Vanguard S&P 500 ETF), a US large-cap blend fund tracking the S&P 500, charges 0.03%.
- VTI (Vanguard Total Stock Market ETF), a US total market fund tracking the CRSP US Total Market, charges 0.03%.
How much does the ETF-mutual fund fee gap cost investors?
On a $10,000 position, the average active equity mutual fund’s 0.40% fee costs about $40 a year. WealthyBud’s cheapest tracked ETF, at 0.03%, costs about $3 a year on the same position — a gap of roughly $37 a year, or 13.3 times cheaper.
8. Fee gap: 0.37 percentage points, or 13.3×
The 0.40% average active equity mutual fund fee sits 0.37 percentage points above WealthyBud’s 0.03% cheapest tracked ETF — a 13.3-times difference (ICI data · WealthyBud data · 2026-07-10).
9. About $37 a year on a $10,000 position
At 0.40%, an active equity mutual fund costs about $40 a year per $10,000 invested; at 0.03%, WealthyBud’s cheapest tracked ETF costs about $3 — a $37 annual gap that compounds over time. Even the median tracked ETF, at 0.09%, still beats the mutual fund average by 0.31 points.
Compare expense ratios and returns across every ETF WealthyBud tracks
Are ETF and mutual fund fees still falling?
Yes, across the board. Equity mutual fund expense ratios have fallen 62% since 1996, while index equity ETF fees have dropped 33% and index bond ETF fees have dropped 50% just since 2017, per the Investment Company Institute.
10. Equity mutual fund fees are down 62% since 1996
From 1996 to 2025, the average equity mutual fund expense ratio fell 62%, per the Investment Company Institute’s Trends in the Expenses and Fees of Funds, 2025 — competition and scale have squeezed active fees for three decades.
11. Index equity ETF fees are down 33% since 2017; bond ETF fees 50%
Over the nine years from 2017 to 2025, index equity ETF expense ratios fell 33% and index bond ETF ratios fell 50% — the steepest decline of any category ICI tracks — per the same ICI report.
Is money moving from mutual funds to ETFs?
Yes. Long-term mutual funds — equity, hybrid and bond combined — had a net outflow of $1.22 trillion in 2025, driven almost entirely by equity funds, while U.S. ETFs pulled in a record $1.50 trillion in net inflows the same year, according to the Investment Company Institute and ETFGI.
12. Long-term mutual funds lost $1.22 trillion in 2025
Equity, hybrid and bond mutual funds combined had a net outflow of $1.22 trillion for the full year 2025, per the Investment Company Institute’s Trends in Mutual Fund Investing: December 2025 release, published January 29, 2026.
13. Equity mutual funds drove the outflow: −$1.23 trillion
Equity mutual funds alone shed $1.23 trillion in 2025; hybrid funds lost another $98.16 billion, while bond mutual funds were the lone bright spot, taking in $109.74 billion, per the same ICI release.
14. U.S. ETFs pulled in a record $1.50 trillion in 2025
U.S. ETFs took in $1.50 trillion in net inflows in 2025, the largest annual total on record, per ETFGI’s year-end 2025 report, published January 19, 2026.
| Metric | 2025 figure |
|---|---|
| Long-term mutual fund net flow (equity, hybrid, bond) | −$1.22 trillion |
| — Equity mutual funds | −$1.23 trillion |
| — Hybrid mutual funds | −$98.16 billion |
| — Bond mutual funds | +$109.74 billion |
| U.S. ETF net inflows (all categories) | +$1.50 trillion |
How big is the ETF industry compared to mutual funds?
Still smaller, but closing the gap. U.S. ETFs held $13.43 trillion in assets at year-end 2025, versus $31.4 trillion for mutual funds — mutual funds remain 2.3× larger — even though ETFs are growing far faster on a percentage basis, per the Investment Company Institute and ETFGI.
15. U.S. ETF assets: $13.43 trillion at year-end 2025
U.S. ETF industry assets reached $13.43 trillion at the end of December 2025, per ETFGI, published January 19, 2026.
16. U.S. mutual fund assets: $31.4 trillion at year-end 2025
The U.S. mutual fund industry held $31.4 trillion in total net assets at year-end 2025 — still the largest fund market in the world — per the Investment Company Institute’s 2026 Investment Company Fact Book, as reported by Crane Data.
17. Three issuers manage 72.1% of the U.S. ETF industry
iShares (29.7% share), Vanguard (28.7%) and State Street SPDR (13.7%) together manage 72.1% of the $13.43 trillion U.S. ETF industry, out of 460 total providers, per the same ETFGI report.
What this means for fund investors
The fee gap is the whole story. A 0.37-point difference sounds small until it compounds over decades — on a $10,000 position it is about $37 a year, every year.
Money is voting with its feet. A $1.22 trillion mutual-fund outflow against a $1.50 trillion ETF inflow in the same year signals a structural shift toward the cheaper, more tax-efficient wrapper.
Mutual funds are not obsolete. At $31.4 trillion, they still hold 2.3 times the assets ETFs do, largely because 401(k) plans remain built around mutual fund share classes.
Not every ETF is automatically cheap. WealthyBud’s own 28-fund range runs from 0.03% to 0.49%, so the expense ratio still needs checking fund by fund, not assumed from the wrapper alone.