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The Hidden Costs of "Free" ETFs: What Zero-Fee Funds Could Do to Your Portfolio

When an ETF is advertised as free, it doesn't necessarily mean you'll save money.

The Hidden Costs of "Free" ETFs: What Zero-Fee Funds Could Do to Your Portfolio

The Hidden Costs of "Free" ETFs: What Zero-Fee Funds Could Do to Your Portfolio

Published June 23, 2026 · Category: Finance

Overview

Few things catch a consumer's eye more quickly than the word "free," and now, major brokerages have gotten into the game. The race to zero-fee has led more brokerages to offer exchange-traded funds (ETFs) with 0% expense ratios. However, as the old saying goes, if something seems too good to be true, it probably is. Those zero-fee ETFs can come with hidden expenses that can quietly and methodically erode your returns.

Here's why the best ETFs may not be free.

Image source: Getty Images.

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Originally published at www.fool.com.

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