Looking to invest in a diversified fund without a steep price tag? Look no further than low-cost index funds. These funds offer a basket of securities for a very minimal fee.
Top-rated low-cost index funds
The lowest-cost index fund may not be the best performing index fund. Be sure to weigh other factors such as market capitalization and sector focus when evaluating index funds. It’s also important to remember that past performance does not indicate future performance.
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Expense ratio |
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Fidelity 500 Index |
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Fidelity Total Market Index |
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Schwab S&P 500 Index |
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iShares S&P 500 Index |
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Schwab Total Stock Market Index |
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Vanguard 500 Index |
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Vanguard Growth Index Fund Admiral Shares |
Data current as of April 3, 2023. This data is for informational purposes only.
Top-rated low-cost index ETFs
Some of the cheapest index funds out there are actually exchange-traded funds, or ETFs. ETFs often track indexes just like index funds do, but they tend to have lower investment minimums (the amount of money you have to have in order to start investing in a fund). They also tend to have slightly lower expense ratios.
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Expense ratio |
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Vanguard Extended Market ETF |
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iShares Core S&P 500 ETF |
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iShares Core S&P Total U.S. Stock Market ETF |
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Schwab U.S. Broad Market ETF |
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Schwab U.S. Large-Cap ETF |
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SPDR Portfolio S&P 1500 Composite Stock Market ETF |
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Vanguard S&P 500 ETF |
Data current as of April 3, 2023. This data is for informational purposes only.
Methodology
To find the lowest-cost index funds we analyzed the index funds that appear on Morningstar’s list of the best index funds, meaning funds that have earned their highest rating, and sorted them from lowest to highest expense ratios.
To find the lowest-cost index exchange-traded funds we analyzed the index funds that appear on Morningstar’s list of the best index funds, meaning funds that have earned their highest rating, and sorted them from lowest to highest expense ratios.
This post was originally published on Nerd Wallet
