Top 10 low-cost ETFs to watch in 2026

Index ETFs aim to replicate a market benchmark by holding its underlying securities, rather than picking stocks through active management. The 10 funds on this list range from 0.03% to 0.25% in annual fees, with seven U.S.-listed options and three on the ASX holding U.S. equities, investment-grade bonds, Australian shares and international markets.

How we built this list: We selected these funds based on their management fees and fund size and ordered them by assets under management. Prices are updated daily, and the list and supporting content are reviewed roughly every quarter. All data is sourced from Stake. This list isn't a recommendation and isn't ordered by suitability.

Past performance is not a reliable indicator of future performance.

Source: Stake market data. AUM is shown in each fund's listing currency, without currency adjustment. Data updated as of 24 August 2026.

✅ Learn more: Top 10 U.S.-listed index funds to watch in 2026→

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1. Vanguard 500 Index Fund ETF ($VOO)

Vanguard 500 Index Fund ETF (VOO) share price over the last year: started at US$590.70, ended at US$701.81, a change of +18.8%. Range over the period: high US$714.95, low US$580.93. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: US$701.81 · Daily: -0.3% · AUM: US$997.35B · MER: 0.03%

The S&P 500 is a market-cap-weighted index of 500 large U.S.-listed companies. Vanguard 500 Index Fund ETF ($VOO) aims to mirror it by holding each constituent at roughly the same weight the index assigns. According to the fund's mandate, $VOO invests in all 500 stocks rather than using a smaller representative sample.

As company weights shift within the S&P 500, $VOO's holdings adjust to stay in step with the benchmark. The index itself determines what the fund holds – stock selection plays no part in the construction.

2. Vanguard Morningstar Total Stock Mkt Ix Fd ($VTI)

Vanguard Morningstar Total Stock Mkt Ix Fd (VTI) share price over the last year: started at US$316.65, ended at US$377.03, a change of +19.1%. Range over the period: high US$384.30, low US$311.68. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: US$377.03 · Daily: -0.3% · AUM: US$666.88B · MER: 0.03%

Vanguard Morningstar Total Stock Mkt Ix Fd ($VTI) aims to track the Morningstar US Total Market Index, a benchmark intended to measure the investment return of the overall US stock market. The fund takes an indexing approach – holding a collection of securities to approximate the index – rather than making active stock selections. That design means the objective is to match the market's return, not to outpace it through stock picking.

The fund's holdings shift as the index composition shifts, without any active intervention in between. $VTI's exposure reflects the US market as a whole, across whatever companies make up the index at any given point. As those weights change, so does the portfolio.

3. Vanguard Morningstar Value Index Fund ($VTV)

Vanguard Morningstar Value Index Fund (VTV) share price over the last year: started at US$182.03, ended at US$226.69, a change of +24.5%. Range over the period: high US$227.51, low US$181.79. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: US$226.69 · Daily: 0.1% · AUM: US$187.81B · MER: 0.04%

Vanguard Morningstar Value Index Fund ($VTV) is built around large-cap U.S. companies that trade at lower prices relative to earnings and book value – what the market tends to classify as 'value' stocks. The fund aims to track a benchmark index of large-capitalisation US value stocks by holding all the stocks that make it up.

The 0.04% annual fee means the vast majority of any return stays in the fund rather than going to administration. $VTV holds US$187.81B in assets.

4. Vanguard Total Bond Market Index Fund ($BND)

Vanguard Total Bond Market Index Fund (BND) share price over the last year: started at US$73.64, ended at US$72.36, a change of −1.7%. Range over the period: high US$75.17, low US$72.15. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: US$72.36 · Daily: 0.2% · AUM: US$160.93B · MER: 0.03%

Vanguard Total Bond Market Index Fund ($BND) is designed to track the Bloomberg U.S. Aggregate Float Adjusted Index, a benchmark covering public, investment-grade, taxable fixed-income securities issued in the United States. Every holding carries a maturity of more than one year. The index is market-weighted, so larger bond issues naturally make up a greater share of the portfolio.

5. iShares Core S&P Mid-Cap ETF ($IJH)

iShares Core S&P Mid-Cap ETF (IJH) share price over the last year: started at US$64.71, ended at US$76.20, a change of +17.8%. Range over the period: high US$78.67, low US$62.26. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: US$76.20 · Daily: -0.7% · AUM: US$125.92B · MER: 0.05%

iShares Core S&P Mid-Cap ETF ($IJH) is designed to track the S&P MidCap 400 Index, which measures the mid-capitalisation segment of the U.S. equity market. Rather than holding every constituent in the index, $IJH uses a representative sampling strategy to try to replicate the index's price and yield performance. The fund's mandate targets that performance before fees and expenses, as is standard for index-tracking structures.

6. iShares Core S&P Small-Cap ETF ($IJR)

iShares Core S&P Small-Cap ETF (IJR) share price over the last year: started at US$117.38, ended at US$146.75, a change of +25.0%. Range over the period: high US$150.44, low US$112.05. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: US$146.75 · Daily: -0.4% · AUM: US$111.19B · MER: 0.06%

The S&P SmallCap 600 covers approximately 2.32% of the US equity market by capitalisation – the smaller end of listed US equities. iShares Core S&P Small-Cap ETF ($IJR) is designed to track that benchmark using a replication strategy, holding the index's underlying securities directly. The fund seeks to correspond to the index's price and yield performance, before fees and expenses.

7. Vanguard FTSE All World ex US ETF ($VEU)

Vanguard FTSE All World ex US ETF (VEU) share price over the last year: started at US$69.67, ended at US$85.21, a change of +22.3%. Range over the period: high US$85.85, low US$68.88. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: US$85.21 · Daily: -0.6% · AUM: US$68.43B · MER: 0.05%

Tracking the FTSE All-World ex US Index, Vanguard FTSE All World ex US ETF ($VEU) aims to replicate the investment return of stocks in both developed and emerging markets outside the United States. The fund uses an indexing approach, holding securities in line with the benchmark rather than selecting stocks through active management. By design, the mandate excludes U.S. equities entirely, so $VEU's performance reflects international equity markets across developed economies and the emerging world.

8. Vanguard Australian Shares Index ETF ($VAS)

Vanguard Australian Shares Index ETF (VAS) share price over the last year: started at A$111.08, ended at A$113.15, a change of +1.9%. Range over the period: high A$114.74, low A$104.44. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: A$113.15 · Daily: 0.5% · AUM: A$26.19B · MER: 0.07%

The S&P/ASX 300 Index covers 300 of the largest companies listed on the ASX, and the Vanguard Australian Shares Index ETF ($VAS) aims to replicate its return before fees, expenses, and tax. The fund holds or is exposed to most of the index's securities, with individual weightings that can vary marginally from the benchmark. $VAS may also hold securities in the process of being added to or removed from the index as it rebalances.

9. iShares Core MSCI World Ex Aus ESG ETF ($IWLD)

iShares Core MSCI World Ex Aus ESG ETF (IWLD) share price over the last year: started at A$65.65, ended at A$70.82, a change of +7.9%. Range over the period: high A$72.70, low A$60.81. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: A$70.82 · Daily: 0.01% · AUM: A$1.84B · MER: 0.09%

Tracking the MSCI World Ex Australia Custom ESG Leaders Index (AUD), iShares Core MSCI World Ex Aus ESG ETF ($IWLD) covers developed market equities from outside Australia. An environmental, social and governance (ESG) screen is built into the benchmark's construction. The 'Leaders' component indicates the index targets higher ESG-rated companies within each sector, rather than removing industries from the index altogether.

Because Australian companies are excluded, the portfolio covers international developed markets without any domestic equity overlap. The fund aims to provide the performance of that index before fees and expenses, as its mandate describes.

10. BetaShares Australian Ex-20 Portfolio Dvrsfr ETF ($EX20)

BetaShares Australian Ex-20 Portfolio Dvrsfr ETF (EX20) share price over the last year: started at A$23.90, ended at A$23.40, a change of −2.1%. Range over the period: high A$24.88, low A$20.69. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: A$23.40 · Daily: 0.6% · AUM: A$697.7M · MER: 0.25%

The BetaShares Australian Ex-20 Portfolio Diversifier ETF ($EX20) aims to track the Solactive Australia ex 20 Index. The index starts with the largest Australian-listed securities by free float-adjusted market capitalisation, then excludes the top 20. What remains is a portfolio of approximately 180 companies – the layer of the Australian market that sits below the megacap names.

➡️ Top 10 Vanguard ETFs in Australia to watch in 2026→

Common questions

How do I invest in low-cost ETFs in Australia?

The access route depends on where the fund is listed. The three ASX-listed funds in this article – $VAS, $IWLD and $EX20 – trade in Australian dollars during ASX hours through any share trading platform. The seven US-listed funds ($VOO, $VTI, $VTV, $BND, $IJH, $IJR and $VEU) require a platform with US market access, and you'll transact in US dollars, so currency conversion applies when moving between AUD and USD.

What are the key risks of low-cost ETFs?

Low fees reduce one cost drag but don't reduce market risk. Equity ETFs track their indices closely, so a broad downturn in U.S. or global equities tends to flow directly into a fund's value. The US-listed funds in this article hold overseas assets priced in US dollars, meaning AUD/USD movements affect Australian-dollar returns – the underlying index can rise while the fund's AUD value falls if the Australian dollar strengthens. $BND, the one bond fund in this list, also carries interest rate risk: bond prices tend to move inversely to rates.

What is a management expense ratio, and why does it matter for index funds?

A management expense ratio (MER) is the annual fee deducted from a fund's assets to cover its operating costs, expressed as a percentage of the fund's total value. Because index funds aim to replicate their benchmark rather than outperform it, the MER is one of the primary factors that explains the gap between the benchmark's return and the fund's reported return. The funds in this article range from 0.03% to 0.25%.

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Disclaimer

Past performance is not a reliable indicator of future performance. When you invest, your capital is at risk. You should consider your own investment objectives, financial situation, and particular needs before making an investment decision. The value of your investments can go down as well as up and you may receive back less than your original investment. As always, do your own research and consider seeking appropriate financial advice before investing.

This is not personal financial advice nor a recommendation to invest in the securities listed. Any advice provided by Stake is of general nature only and does not take into account your specific circumstances. Trading and volume data from the Stake investing platform is for reference purposes only, the investment choices of others may not be appropriate for your needs and is not a reliable indicator of performance.

Please refer to hellostake.com/pricing for the fees that apply. When you trade securities priced in another currency, currency conversion fees may apply and movements in the exchange rate may affect your returns.

Stake Desk

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This article combines AI and human review from our analysts to bring you accurate, informative investing content at speed. For questions or suggestions, contact stakedesk@stake.com.au.