Why Vanguard is Leading ETF Inflows for 2012 | Page 2 of 2 | ETF Trends

VTI has an expense ratio of 0.06%, while BND charges 0.1%.

“The core is where you have the majority of assets, and that’s where investors are expecting the lowest-possible-cost products,” said Martha King, managing director of Vanguard’s financial advisory services division, in the article.

“Costs matter more when expected returns are low. If you’re expecting only a 2% or 3% return, a 1% fee seems a lot more expensive,” added Mike Rawson, an ETF analyst at Morningstar.

Vanguard Total Stock Market ETF