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Which ETF is better for my goals?

Compare two ETFs side by side on expense ratio, yield, and projected growth. Make informed decisions about which fund to choose.

What This Calculator Is

An ETF comparison calculator evaluates two exchange-traded funds side by side, accounting for expense ratios, dividend yields, and expected growth rates. It projects long-term wealth accumulation under each scenario, helping you choose the ETF that best aligns with your investment strategy and goals.

Who This Calculator Is For

Self-directed investors choosing between similar ETFs, those comparing index funds to dividend-focused funds, and anyone building a portfolio who wants to optimize fund selection. It's particularly useful for comparing total market funds, sector ETFs, or growth versus value options.

When to Use This Calculator

Use this calculator when narrowing down ETF choices for your portfolio, when rebalancing and considering switches, when comparing new fund options that become available, or when evaluating the trade-off between higher yield and higher growth potential. Factor in tax implications separately.

Inputs

Investment Amount

$50,000.00

ETF 1 Expense Ratio

0.030%

ETF 1 Dividend Yield

1.500%

ETF 1 Expected Growth

8.000%

ETF 2 Expense Ratio

0.750%

ETF 2 Dividend Yield

3.000%

ETF 2 Expected Growth

5.000%

Investment Period

Results

Wealth Difference

$102,673.28

ETF 1 Final Value$305,402.34

ETF 2 Final Value$202,729.07

Better ChoiceETF 1

Past performance does not guarantee future results. All investments carry risk.

Insights

ETF 1 performs better

The difference is $102,673.28 over 20 years.

Look beyond returns

Also consider tracking error, liquidity, tax efficiency, and your overall portfolio allocation.

How ETF Comparison Is Calculated

The calculator projects each ETF's future value based on initial investment, dividends reinvested, price growth, and fees deducted. It shows the difference in final wealth to help you make an informed choice.

etfTotalReturn = yield + growth - expenseRatio (% per year)
FinalValue = investmentAmount * (1 + etfTotalReturn/100)^years
Computed independently for ETF1 and ETF2; difference = |etf1Final - etf2Final|
Where:
investmentAmount (default 50000), etf1/2Expense % (defaults 0.03, 0.75), etf1/2Yield % (defaults 1.5, 3.0), etf1/2Growth % (defaults 8, 5), years (default 20)
Assumptions:
Yield and price growth are simply summed (assumes dividends reinvested at the same total rate, no separate yield compounding mechanics)
Expense ratio is a flat annual drag subtracted from total return
Single annual compounding of the net total return rate; no monthly detail

Key Takeaways

•Lower expense ratios almost always win over long periods
•Compare ETFs tracking the same index — performance should be similar, so fees matter most
•Consider tax efficiency: some ETFs are structured to minimize capital gains distributions
•Look at tracking error — how closely does the ETF match its benchmark?
•Liquidity matters for larger investors: check daily trading volume

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