JPMorgan's BBUS ETF cuts fees to 0.02%, undercutting Vanguard's VTI with a large- and mid-cap focus.

JPMorgan BetaBuilders U.S. Equity ETF (BBUS) now offers a 0.02% expense ratio, slightly cheaper than Vanguard's Total Stock Market ETF (VTI). BBUS tracks the top 85% of the U.S. equity market by capitalization, focusing on large- and mid-cap stocks and excluding small-caps. This results in a portfolio dominated by mega-cap names like Apple and Microsoft, with a slightly different risk and return profile compared to VTI, which includes small-caps. Over five years, BBUS outperformed VTI due to its large- and mid-cap tilt, though small-caps have dragged down total-market returns recently. The fee savings are most beneficial in tax-advantaged accounts, as switching in taxable accounts may trigger significant capital gains taxes.