Best index funds 2025

This fund is highly recommended due to its zero expense ratio, making it one of the cheapest options for investors. It tracks the Fidelity U.S. Large Cap Index, which closely mirrors the S&P 500, providing broad diversification and a strong 5-year annualized return of 18.8%.

• Invest in large US companies

• Automatic diversification

• Long-term growth potential

The Vanguard S&P 500 ETF is a top choice for its low expense ratio of 0.03% and its track record of closely following the S&P 500 index. It offers broad diversification and has a 5-year annualized return of 18.8%, making it suitable as a core portfolio holding.

• Diversification across 500 large companies

• Tracks the S&P 500 index closely

• Strong Vanguard reputation

• High trading volume

This fund is notable for having no minimum investment requirement and a low expense ratio of 0.02%. It provides exposure to the S&P 500, making it a solid choice for those seeking broad market coverage.

• Tracks the S&P 500 index

• Broad diversification

• Schwab's reputation

The iShares Core S&P 500 ETF is another popular option for tracking the S&P 500, offering a low-cost way to invest in the U.S. stock market. It is widely available and provides broad diversification.

• Low expense ratio

• Broad diversification

• High liquidity

• iShares reputation

This ETF tracks the U.S. total stock market, providing exposure to virtually all publicly traded U.S. companies. It offers a comprehensive investment in the U.S. market at a low cost, making it a favorite among long-term investors.

• Low management expenses

• Tracks the CRSP US Total Market Index

• High liquidity and trading volume

• Ideal for long-term investors