Jasmine Birtles
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Best Zero Fees ETFs to Buy in 2025
Ruby Layram
28th May 2025
So you’ve heard of ETFs, those handy baskets of investments you can buy and sell like shares. But did you know there are actually some with zero fees? Yep, really! In 2025, there are some cracking zero-fee ETFs out there that let you invest without having to pay the fund managers a single penny in annual fees.
In this guide, we will take a look at what zero-fee ETFs are, why ETFs even have fees in the first place, and the best zero-fee ETFs to pop on your radar this year.
What’s an ETF, and Why Do They Charge Fees?
ETFs, or exchange-traded funds, bundle up lots of investments (like shares, bonds, or even commodities) and trade them on the stock exchange.
They’re an easy way to diversify your portfolio and, typically, they charge a small annual fee known as an “expense ratio” to cover management and operational costs.
This fee is usually pretty small (often between 0.05% and 0.5%), but over time it can add up and eat into your returns. That’s why zero-fee ETFs are so exciting, they let you keep more of your investment gains for yourself!
You might like: The best European ETFs to Buy in 2025
How to Check If an ETF Has Zero Fees
Before you dive in, make sure you’re investing in the real deal. Here’s what to look for:
Check the “Expense Ratio”: This is usually listed in the fund’s key factsheet or on your investing platform. If it says 0.00%, that means it’s truly zero-fee!
Look for Terms Like “Zero” or “No Fee”: Funds like the “Fidelity ZERO” range really do what they say on the tin.
Check for Hidden Costs: Some funds might have no ongoing fees but could still have other costs, like high trading commissions or exit fees. Always read the small print!
The Best Zero-Fee ETFs to Buy in 2025
Here’s a rundown of some of the best zero-fee and super-low-cost ETFs available right now:
BNY Mellon US Large Cap Core Equity ETF (BKLC)
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Fee: 0.00%
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Why We Like It: It’s one of the few truly zero-fee ETFs tracking large-cap US companies. A fab option if you want to keep more of your money working for you.
Fidelity ZERO Large Cap Index Fund (FNILX)
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Fee: 0.00%
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Why We Like It: Technically a mutual fund rather than an ETF, but it’s got the same benefits – zero fees and broad exposure to the big guns of the US stock market.
Fidelity ZERO Total Market Index Fund (FZROX)
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Fee: 0.00%
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Why We Like It: Another mutual fund with zero fees, covering the entire US market. It’s a “set it and forget it” kind of fund!
SPDR Portfolio S&P 500 ETF (SPLG)
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Fee: 0.02%
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Why We Like It: Okay, it’s not zero, but 0.02% is as close as it gets for an ETF tracking the mighty S&P 500.
Vanguard S&P 500 ETF (VOO)
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Fee: 0.03%
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Why We Like It: Super low-cost, reliable, and tracks the S&P 500. A classic choice for anyone wanting to ride the ups and downs of the US stock market.
iShares Core S&P 500 ETF (IVV)
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Fee: 0.03%
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Why We Like It: Another solid S&P 500 option with rock-bottom fees and a track record of great performance.
The Best Low-Cost ETF Platform for UK Investors
There are plenty of investment platforms out there that offer ETFs. However, one of our top ticks for low-cost ETFs is Invest Engine.
Here’s why InvestEngine is getting all the love in 2025:
- Zero Platform Fees for DIY Investors: That’s right! InvestEngine doesn’t charge you anything to buy and hold ETFs if you’re happy to build your own portfolio. That means all those juicy gains stay in your pocket, not theirs.
- Built Just for ETFs: Unlike some other platforms that have all sorts of products, InvestEngine focuses purely on ETFs. That means a slick, simple interface without the clutter. Perfect if you’re new to investing or just want to cut out the noise.
- Fractional Investing & Auto-Rebalancing: You can start with as little as £100, and you can invest fractionally – so you don’t need to buy whole ETF shares. Plus, their auto-rebalancing tool makes sure your portfolio doesn’t drift too far from your target mix over time. Handy!
- Great Range of Funds: You’ll find everything from global giants to niche sector funds (yep, even those healthcare and defence ETFs we’ve talked about!)- all at low cost.
- Friendly Support & Educational Resources: InvestEngine isn’t just about low fees- they’ve got loads of guides, articles and handy webinars to help you feel confident in your investing journey.
Final Thoughts
Zero-fee ETFs are a brilliant way to keep your costs low and your investing goals on track. But don’t forget to look beyond the fees- you want to make sure the ETF matches your risk level and financial goals. And of course, double-check that your investing platform actually offers these funds to UK-based investors- sometimes there are different options for US vs UK savers!
Ready to give your investments a fee-free boost? Keep your eyes peeled for those expense ratios and shop around for the best value platforms!
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Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here, including opinions, commentary, suggestions or strategies, are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence. When investing your capital is at risk.
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