# ETF Fees by Category by the Numbers: Averages, Medians and Ranges

Source: https://www.vistashares.com/etf-fees-by-category-by-the-numbers/
Published: 2026-11-13 | Updated: 2026-11-13

By Adam Patti, Chief Executive Officer, VistaShares | November 2026

What an ETF charges depends heavily on what it does. Broad index bond and stock funds cost a few hundredths of a percent a year on an asset-weighted basis, while thematic, crypto and buffer funds typically charge several times more. This page gathers category fee figures from ICI, Morningstar and ETFIQ in one table, with the type of figure and the date for each, since averages and medians measure different things.

Category | Fee figure | Type of figure and date |

Index bond ETFs | 0.09% | Asset-weighted average, 2025 (ICI) |

Index equity ETFs | 0.14%; 0.45% simple average | Asset-weighted and simple averages, 2025 (ICI) |

All U.S. passive funds, mutual funds and ETFs | 0.10% | Asset-weighted average, 2025 (Morningstar) |

All U.S. active funds, mutual funds and ETFs | 0.57% | Asset-weighted average, 2025 (Morningstar) |

Spot crypto ETFs | 0.25%; spot bitcoin funds from 0.14% to 1.50% across 13 funds | Median sponsor fee and range, Nov 12, 2026 (ETFIQ) |

Thematic ETFs | 0.56% median across 227 funds; range 0.00% to 1.32% across 428 funds | Median for the second quarter of 2026; range as of Nov 11 to 12, 2026 (ETFIQ) |

Selected themes | Semiconductor 0.15% to 0.65%; defense 0.10% to 0.75%; AI 0.35% to 1.32% | Ranges, Nov 10 to 12, 2026 (ETFIQ) |

Defined outcome (buffer) ETFs | 0.75% | Average fee, Dec 31, 2025 (Morningstar) |

Sources: ICI, Trends in the Expenses and Fees of Funds, 2025 (note 1); Morningstar 2026 US Fund Fee Study and Defined Outcome ETF guide (notes 2 and 3); [ETFIQ ETF statistics](https://etfiq.com/statistics/), data as of Nov 12, 2026; [ETFIQ Quarterly, 2026-Q2](https://etfiq.com/research/quarterly/2026-q2/); [ETFIQ thematic ETFs](https://etfiq.com/themes/), [semiconductor](https://etfiq.com/themes/semis), [defense](https://etfiq.com/themes/defense) and [AI](https://etfiq.com/themes/ai) pages, data as of Nov 11 to 12, 2026.

## What does an ETF fee include?

An ETF's expense ratio is the annual percentage of assets the fund deducts to cover management, administration and other operating costs. It is taken out of the fund's assets daily, so investors do not pay a separate bill; it shows up as a slightly lower net asset value. The prospectus states the expense ratio, and our article on [how to compare two ETFs](https://www.vistashares.com/how-to-compare-two-etfs/) explains where to find it.

The expense ratio does not include trading costs inside the fund, such as commissions or option trading costs, or the bid and ask spread an investor pays when buying or selling shares.

## Why do averages and medians differ so much?

An asset-weighted average gives each fund weight in proportion to its size, so it shows what the typical dollar pays. A simple average or a median treats every fund equally, so it shows what the typical fund on the shelf charges. ICI's figures for index equity ETFs show the gap clearly: 0.14% asset-weighted in 2025, against 0.45% as a simple average.[1] Most ETF money sits in a small number of large, low-cost funds, while many smaller funds charge more.

When comparing categories, it helps to compare like with like. The figures in the table mix asset-weighted averages, simple averages and medians, and each row says which.

## Where are the lowest fees?

Broad index funds. Index bond ETFs had an asset-weighted average expense ratio of 0.09% in 2025, and index equity ETFs 0.14%, according to ICI.[1] Morningstar put the asset-weighted average for all passive U.S. funds, mutual funds and ETFs together, at 0.10%.[2] Competition among the largest index funds has pushed these costs down for years; across all U.S. mutual funds and ETFs, Morningstar's asset-weighted average fell to 0.32% in 2025 from 0.80% in 2006.[2]

## What do specialized categories charge?

**Thematic ETFs:** ETFIQ found a [median fee of 0.56%](https://etfiq.com/research/quarterly/2026-q2/) across 227 thematic ETFs that traded through the second quarter of 2026, with fees ranging from [0.00% to 1.32%](https://etfiq.com/themes/) across 428 funds in November 2026. Ranges differ by theme: semiconductor funds ran from [0.15% to 0.65%](https://etfiq.com/themes/semis), defense funds from [0.10% to 0.75%](https://etfiq.com/themes/defense) and AI funds from [0.35% to 1.32%](https://etfiq.com/themes/ai).

**Spot crypto ETFs:** the median sponsor fee was [0.25%](https://etfiq.com/statistics/) as of November 12, 2026, read from each trust's own filings. Among 13 spot bitcoin ETFs holding the same asset, fees ran from 0.14% to 1.50%, a wide spread for funds that hold the same thing.

**Buffer ETFs:** Morningstar reported an average fee of 0.75% for defined outcome ETFs at the end of 2025.[3] These funds pay for an options package that is reset each outcome period, and the fee covers managing that process.

**Active funds:** Morningstar put the asset-weighted average for all active U.S. funds at 0.57% in 2025.[2] Many option income and buffer ETFs are actively managed.

## Does a higher fee mean a worse fund?

Not by itself. A fee pays for a strategy, and some strategies cost more to run: writing options every week, resetting a buffer, holding hard-to-trade securities or researching narrow themes. The useful question is whether the strategy is the one an investor wants, and then whether a similar fund offers it for less. Fees are one of the few costs known in advance, and they compound over time, so they matter most for long holding periods.

Our article on [active vs. passive ETFs](https://www.vistashares.com/active-vs-passive-etfs/) explains the trade-off between cost and strategy.

## How should investors use category fee figures?

**As a benchmark:** a category median or range shows whether a fund's fee is typical, low or high for what it does.

**With the date and measure:** fee figures change as funds launch, close and cut fees, and an average is not a median.

**Fund by fund:** the prospectus expense ratio is the figure that applies, and the fund's fact sheet usually repeats it. Our article on [what an ETF is](https://www.vistashares.com/what-is-an-etf/) covers the basics of how funds are structured.

More basics articles are in the [ETF Basics Guide](https://www.vistashares.com/etf-basics-guide/).

## Frequently asked questions

### What is the average ETF expense ratio?

It depends on the measure. ICI put the asset-weighted average for index equity ETFs at 0.14% in 2025, and the simple average, which counts every fund equally, at 0.45%.

### Which ETFs are cheapest?

Broad index funds, especially bond index funds. Index bond ETFs had an asset-weighted average expense ratio of 0.09% in 2025, according to ICI.

### What do thematic ETFs typically charge?

ETFIQ found a median fee of 0.56% across 227 thematic ETFs in the second quarter of 2026, with a range of 0.00% to 1.32% across 428 funds in November 2026.

### Why do funds that hold the same asset charge different fees?

Issuers set their own fees, and some use lower fees to compete for assets. Among 13 spot bitcoin ETFs, fees ran from 0.14% to 1.50% as of November 12, 2026.

### Is the expense ratio the only cost?

No. Trading costs inside the fund and the bid and ask spread when buying or selling shares add to the total cost of owning an ETF.

### Have ETF fees fallen over time?

Yes. Morningstar's asset-weighted average across all U.S. mutual funds and ETFs fell to 0.32% in 2025 from 0.80% in 2006.

## NOTES

- Investment Company Institute, "Trends in the Expenses and Fees of Funds, 2025," index bond ETFs 0.09% and index equity ETFs 0.14% asset-weighted, index equity ETFs 0.45% simple average, 2025, https://www.ici.org/system/files/2026-03/per32-01.pdf.
- Morningstar Manager Research, "2026 US Fund Fee Study," asset-weighted averages for 2025: all funds 0.32% (0.80% in 2006), passive 0.10%, active 0.57%, https://www.morningstar.com/content/cs-assets/v3/assets/blt9415ea4cc4157833/bltceffe0d68d048b0a/6a076fcbc9bda1fb11c9f0a6/US_Fund_Fee_Study_2026.pdf.
- Morningstar Manager Research, "Defined Outcome ETFs: A definitive guide," average fee of 0.75% as of December 31, 2025, https://www.morningstar.com/content/cs-assets/v3/assets/blt9415ea4cc4157833/blt2d885fde2895d23f/698cb7d6664b36cdfb8426c5/Defined_Outcome_ETF_Landscape.pdf.
- ETFIQ, ETF statistics, data as of November 12, 2026 (spot crypto median sponsor fee and spot bitcoin fee range), https://etfiq.com/statistics/; ETFIQ, The ETFIQ Quarterly, 2026-Q2, published September 11, 2026 (thematic median fee), https://etfiq.com/research/quarterly/2026-q2/; ETFIQ, Thematic ETFs (fee range), https://etfiq.com/themes/; ETFIQ, Semiconductor ETFs, https://etfiq.com/themes/semis; ETFIQ, Defense ETFs, https://etfiq.com/themes/defense; ETFIQ, AI ETFs, https://etfiq.com/themes/ai. Pages read November 13, 2026.
- Adam Patti, Chief Executive Officer of VistaShares, is also the founder of ETFIQ. ETFIQ does not accept payment from ETF issuers, and its figures are calculated from public filings and market data.

Adam Patti, Chief Executive Officer of VistaShares, is also the founder of ETFIQ. ETFIQ does not accept payment from ETF issuers, and its figures are calculated from public filings and market data.

## IMPORTANT INFORMATION

This material is provided for educational purposes only. It is not investment, legal or tax advice, and it is not a recommendation or an offer to buy or sell any security. Information is drawn from sources believed to be reliable as of the date of publication, is not guaranteed as to accuracy or completeness, and may change without notice. Figures attributed to third parties are their estimates. Projections and forecasts are not guarantees of future results. Investors should consult their own financial, legal and tax professionals before making investment decisions. Investments involve risk, including possible loss of principal. Strategies that use options involve additional risks, including limited participation in market gains, the risk that options do not perform as intended, and changes in distributions. Tax treatment depends on individual circumstances and on current law, which may change.

Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call (844) 875-2288 or visit www.VistaShares.com. Read the prospectus or summary prospectus carefully before investing.

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