No one stock does much better than another in the long run. So it is with a mutual fund. And when it comes to mutual funds, index funds are still king.Below are the top 9 index funds available on the market today.
1. Fidelity ZERO Large Cap Index Fund
With more than $1 trillion in assets under management and over 2 million investors, Fidelity Investments is one of the most popular financial services companies in the world. Fidelity has some of the best index funds, among which is the Fidelity ZERO Large Cap Index Fund. This mutual fund focuses mostly on smaller U.S. companies and holds about 70 percent of its assets in stocks from this segment.
2. Vanguard 500 Index Fund
Vanguard 500 Index Fund is another excellent index fund from Vanguard. This mutual fund was designed to mirror the S&P 500 Index and has the distinction of being the first-ever index fund to launch in 1976. The management expense ratio of this portfolio fund is 0.20 percent, making it one of the thriftiest mutual funds out there. It uses a passive strategy and holds 95 percent of its portfolio in stocks that are part of the S&P 500 Index.
3. Schwab S&P 500 Index Fund
Schwab S&P 500 Index Fund is another excellent index mutual fund. This portfolio fund was designed to mirror the S&P 500 Index and has assets under management of over $5 billion. Schwab also claims that its Wide-Cap fund is tested against the CRSP US Large Cap Index, which is a much broader asset class than the S&P 500. With fees of only 0.17 percent, this fund should be on your list of best index funds if you’re looking for something with low cost performance.
4. SPDR S&P Dividend ETF
SPDR S&P Dividend ETF is a “basket” fund that holds stocks of the largest and most stable dividend-paying companies. This fund can be used as a great company stock or as an additional income source. The management fee for this index fund is 0.35 percent and its performance has exceeded that of the S&P 500 in seven out of 10 years.