Explore the top 7 passive index funds ideal for diversifying your investment portfolio. These funds track major market indices like the S&P 500 and Nasdaq-100, offering low-cost options for long-term growth. Understand their features, historical performance, and suitability for different risk profiles to make informed investment choices.

Best 7 Index Funds for Investors to Consider

Index funds are investment options like mutual funds or ETFs that track the performance of a specific stock market index. Managed passively, these funds replicate the index composition, adjusting holdings as the market shifts. They offer a low-cost, efficient way to diversify. Here’s a list of leading index funds, each with distinct features and historical returns, suitable for different investment goals.

Fidelity 500 Index Fund (FXAIX)
Mimicking the S&P 500, this fund invests in large-cap U.S. stocks. After a -19.3% return in 2022, it has an expense ratio of only 0.015%. Its five-year average annual return stands at 11.5%.

Washington Mutual Investors Fund (WSHFX)
Founded in 1952, this fund outperforms during major market declines, focusing on companies with reliable dividends. Its holdings primarily include firms in finance, healthcare, and technology sectors, mostly from the U.S.

Rowe Price Value Fund
Prioritizing undervalued stocks, this fund allocates at least 65% of assets to such securities. It provides a strategic hedge during inflation periods, charging a management fee of 0.55% and an expense ratio of 0.65%.

Fidelity Zero Large Cap Index (FNILX)
This fund tracks the Fidelity US Large Cap Index without charging any expense ratio. It avoids licensing fees associated with the S&P 500, providing broad exposure to large-cap stocks at no cost.

Thrivent Mid Cap Stock Fund
This actively managed fund targets mid-cap companies, holding 58 stocks aimed at long-term growth. Suitable for investors comfortable with higher market volatility, its sectors include consumer discretionary, finance, and industrials.

Schwab S&P 500 Index Fund
Recognized for its extremely low fees, with an expense ratio of 0.02%, this fund closely tracks the S&P 500, making it popular among cost-conscious investors seeking market-matching returns.

Invesco QQQ Trust ETF
Launched in 1999, this ETF follows the Nasdaq-100, emphasizing leading technology and non-financial firms. Managed by Invesco, it boasts a low expense ratio of 0.2% and has achieved impressive total returns over the past decade and a half.

Investing in stocks or bonds involves risks, including the possibility of losing your entire investment. It’s essential to analyze market trends, diversify your portfolio, and consult a financial professional before investing.

Note: This information is based on current market data and research; however, market conditions may change. We do not guarantee accuracy and recommend seeking professional advice for investment decisions.