For a complete guide to index fund and ETF investing — including fund comparisons, expense ratios, and tax strategy — see the Index Funds and ETFs hub.
Compare the best index funds for building long-term wealth with low fees.
Best Index Funds Overview
Category
Top Pick
Expense Ratio
Min Investment
Total US Stock
VTSAX / VTI
0.03%
$3,000 / $1
S&P 500
VOO / IVV / FXAIX
0.03%
$1
Total International
VTIAX / VXUS
0.11%
$3,000 / $1
Total Bond
VBTLX / BND
0.03%
$3,000 / $1
Total World
VT
0.07%
$1
Best S&P 500 Index Funds
Fund
Ticker
Expense Ratio
Min
10-Yr Return*
Vanguard 500 ETF
VOO
0.03%
$1
12.8%
iShares Core S&P 500
IVV
0.03%
$1
12.8%
SPDR S&P 500
SPY
0.09%
$1
12.7%
Fidelity 500 Index
FXAIX
0.015%
$0
12.8%
Schwab S&P 500
SWPPX
0.02%
$0
12.8%
*Annualized returns through 2025; past performance doesn’t guarantee future results
Why S&P 500 Funds Are Popular
Advantage
Explanation
Ultra-low cost
0.02-0.03% expense ratio
500 largest companies
Instant diversification
Long track record
~10% historical annual return
Tax efficient
Low turnover
Highly liquid
Trade anytime
Best Total Stock Market Index Funds
Fund
Ticker
Expense Ratio
Holdings
Min
Vanguard Total Stock Market ETF
VTI
0.03%
3,900+
$1
Vanguard Total Stock Admiral
VTSAX
0.04%
3,900+
$3,000
Fidelity Total Market Index
FSKAX
0.015%
4,000+
$0
Schwab Total Stock Market
SWTSX
0.03%
3,400+
$0
iShares Total US Stock Market
ITOT
0.03%
3,600+
$1
S&P 500 vs Total Market
Factor
S&P 500
Total Market
Holdings
500 large-cap
3,000-4,000 all sizes
Mid/small cap
No
Yes (~20%)
Historical return
Very similar
Very similar
Recommendation
Either is excellent
Slightly more diversified
Best International Index Funds
Fund
Ticker
Expense Ratio
Holdings
Min
Vanguard Total Int’l ETF
VXUS
0.08%
8,000+
$1
Vanguard Total Int’l Admiral
VTIAX
0.12%
8,000+
$3,000
iShares Core MSCI Total Int’l
IXUS
0.09%
4,300+
$1
Fidelity Total Int’l Index
FTIHX
0.06%
5,000+
$0
Schwab International Index
SWISX
0.06%
830+
$0
Why Include International?
Reason
Benefit
Diversification
Not all eggs in US basket
Growth opportunity
Some countries grow faster
Currency diversification
Hedge against dollar decline
Valuation
International often cheaper
Typical allocation: 70-80% US / 20-30% International
Best Bond Index Funds
Fund
Ticker
Expense Ratio
Yield
Duration
Vanguard Total Bond ETF
BND
0.03%
4.5%
6.3 yrs
iShares Core US Aggregate
AGG
0.03%
4.5%
6.2 yrs
Fidelity US Bond Index
FXNAX
0.025%
4.5%
6.1 yrs
Schwab US Aggregate Bond
SCHZ
0.03%
4.5%
6.2 yrs
When to Include Bonds
Age/Timeline
Suggested Bond %
20s-30s
0-10%
40s
10-20%
50s
20-30%
60+
30-50%+
Common rule: Bond % = Your age (e.g., 30 years old = 30% bonds)
Best Target Date Index Funds
“Set it and forget it” all-in-one funds:
Fund (Vanguard)
Ticker
Expense Ratio
Stock/Bond
Target Retirement 2065
VLXVX
0.08%
90/10
Target Retirement 2055
VFFVX
0.08%
90/10
Target Retirement 2045
VTIVX
0.08%
88/12
Target Retirement 2035
VTTHX
0.08%
77/23
Target Retirement 2025
VTTVX
0.08%
58/42
How they work: Automatically shift from stocks to bonds as you age.
Cost Comparison: $100,000 Over 30 Years
Expense Ratio
Annual Fee
30-Year Fee Drag*
0.03% (Index)
$30
$13,500
0.50% (Avg mutual fund)
$500
$180,000
1.00% (High-cost fund)
$1,000
$315,000
*Assumes 7% annual return; fee drag includes lost growth
Index fund advantage: Save hundreds of thousands in fees over a lifetime
Simple Portfolio Examples
One-Fund Portfolio
Fund
Allocation
VT (Total World)
100%
Simplest option - global diversification in one fund
Two-Fund Portfolio
Fund
Allocation
VTI (Total US)
70%
VXUS (Total Int’l)
30%
Three-Fund Portfolio
Fund
Allocation (Young)
Allocation (Near Retirement)
VTI (Total US)
60%
40%
VXUS (Total Int’l)
25%
20%
BND (Total Bond)
15%
40%
Where to Buy Index Funds
Brokerage
Commission
Proprietary Funds
Account Min
Vanguard
$0
VTSAX, VOO, etc.
$0
Fidelity
$0
FXAIX, FSKAX, etc.
$0
Schwab
$0
SWPPX, etc.
$0
E*TRADE
$0
None
$0
TD Ameritrade
$0
None
$0
All major brokerages offer commission-free ETF trading
Index Fund vs ETF
Feature
Mutual Fund
ETF
Trading
End of day
Anytime
Minimum
Often $1,000-$3,000
~$1 (price of 1 share)
Tax efficiency
Good
Slightly better
Automatic investing
Easy to set up
May need workaround
Fractional shares
Standard
Depends on broker
Both are excellent choices for index investing
Getting Started
Step-by-Step
Open brokerage account - Vanguard, Fidelity, or Schwab
Choose strategy - Target date or 3-fund portfolio
Set up automatic investing - Monthly contributions
WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.
The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy
