Some ETFs compete on price — but fees shouldn't always 'drive the investment decision,' analyst says

As investors who use exchange-traded funds know, the cost can be a tiny fraction of the assets you invest.

Sometimes, ETFs from different providers — i.e., Vanguard, State Street

, Charles Schwab

, etc. — track the same index (say, the S&P 500), which can make it tempting to go with whichever is cheapest. Yet when you choose a fund to invest in, experts say, it’s important to consider more than just its expense.

“ETFs that compete on price are usually index-trackers that charge the cheapest fees in their respective category,” said Dan Sotiroff, a senior analyst at Morningstar. “So, other considerations would ultimately drive the investment decision.”