Overview
- Latest coverage urges investors to compare near-identical funds, noting SPDR S&P 500 (SPY) charges a 0.09% expense ratio versus 0.03% for Vanguard’s VOO.
- Some specialized products carry steep costs, with YieldMax Bitcoin Option Income Strategy ETF (YBIT) listing a 0.99% expense ratio that warrants close review.
- ETFs are not automatically diversified or low risk, as Invesco QQQ is roughly 60% in technology stocks and about half allocated to its top 10 holdings.
- Articles warn that fees can meaningfully erode future returns if costs are not justified by the strategy or outcomes.
- Guidance emphasizes building a diversification plan first and considering broad, low-cost index trackers for core exposure.