Best Index Funds for Investment in 2024
Discover the top index funds of 2024 that offer broad market exposure, low costs, and high potential returns. From Vanguard and Fidelity to BlackRock, find out which funds are best suited for your investment portfolio. These funds track the S&P 500 and are perfect for diversifying your investments efficiently and cost-effectively.
Best Index Funds for Investment in 2024
Investing in index funds provides exposure to a diversified basket of stocks at a cost-effective price. This approach offers broad market exposure, reducing investment risk while keeping costs low. Over recent years, index funds have gained popularity over individual stocks. The top options for 2024 are based on the S&P 500, featuring 500 leading large-cap companies across various sectors. Here, we present a selection of the best S&P 500 index funds known for their affordability and strong returns.
Fidelity Zero Large Cap Index (FNILX)
This fund tracks the Fidelity Large Cap Index, which closely resembles the S&P 500, but with negligible difference. Its standout feature is a zero expense ratio, making it highly attractive for cost-conscious investors. Since Fidelity doesn’t leverage the S&P 500 name, management costs are lower, which is crucial for long-term growth.
- Schwab S&P 500 Index Fund (SWPPX)
- This fund aims to mirror the S&P 500's performance, allocating around 80% of assets to its constituent stocks. It tracks the total return of the index with an ultra-low expense ratio of 0.02%, making it an excellent choice for cost-effective investing.
- SPDR S&P 500 ETF Trust (SPY)
- Established in 1993, SPY is among the most traded ETFs globally. It tracks the S&P 500 index and features high liquidity, which often translates to lower trading costs. Its expense ratio is 0.09%, suitable for investors seeking short-term or long-term holdings.
- Vanguard 500 Index Fund Admiral Shares (VFIAX)
- With assets under management exceeding USD 740 billion, VFIAX is one of the largest index funds. It seeks to replicate the S&P 500’s performance with an expense ratio of 0.04%, offering a cost-effective way to invest in the broad market.
- iShares Core S&P 500 ETF (IVV)
- Issued by BlackRock, IVV tracks the S&P 500 with an expense ratio of just 0.03%. Its low costs and competitive dividend yield make it a popular choice among investors looking for reliable, cost-efficient exposure to the U.S. stock market.
