These 21 funds have the lowest holding costs for short-term speculators.
If you want a brief exposure to smaller companies, use one of the exchange-traded funds that get to the top of our cost efficiency rankings.
The scorecard here reports the cost of maintaining a $10,000 stake for three months. That cost is the sum of the bid/ask spread, the expense ratio and the cost offset from securities lending.
The last factor is an important one for small-company index funds. They use revenue from lending shares to short-sellers to offset a large chunk of their management fee. It’s how such ETFs as the iShares Core S&P Small-Cap (IJR) and the iShares Russell 2000 (IWM) get their holding costs pretty close to zero.
|3-month Holding Cost*|
|IJH||iShares Core S&P Mid-Cap||$2.66||A|
|VXF||Vanguard Extended Market||3.85||A|
|SCHM||Schwab US Mid-Cap||4.48||A|
|VOE||Vanguard Mid-Cap Value||4.94||A|
|SPMD||SPDR Portfolio Mid Cap||5.30||B|
|VOT||Vanguard Mid-Cap Growth||6.93||B|
|IVOO||Vanguard S&P Mid-Cap 400||7.00||B|
|MDY||SPDR S&P MidCap 400||7.45||A+|
|IWS||iShares Russell Mid-Cap Value||9.13||A|
|IJR||iShares Core S&P Small-Cap||0.43||A+|
|IWM||iShares Russell 2000||0.66||A+|
|IWO||iShares Russell 2000 Growth||2.76||A|
|VTWO||Vanguard Russell 2000||3.95||B|
|SCHA||Schwab US Small-Cap||4.21||A|
|IWN||iShares Russell 2000 Value||4.42||A|
|SPSM||SPDR Portfolio Small Cap||5.10||B|
|VBR||Vanguard Small-Cap Value||6.83||A|
|VIOO||Vanguard S&P Small-Cap 600||6.87||B|
|VBK||Vanguard Small-Cap Growth||7.91||B|
*Cost of a $10,000 position held for three months. Reflects bid/ask spread, expense ratio and cost offset from securities lending.
Data sources: Morningstar, Bloomberg, fund distributors
For links to the short-term holding costs in other categories, such as bonds and foreign stocks, go to Best ETFs for Trading.
Originally published at Forbes