The Vanguard Index Funds S&P 500 is considered to be one of the best S&P 500 index funds by many. However, other index funds have features that make them very attractive to investors. Below is a list of great S&P 500 index funds to consider.
What makes the Vanguard Index Funds S&P 500 the best?
All S&P 500 index funds share a lot of similarities. They are all diversified and they have low cost, among many other things. In fact, they all track the S&P 500 index. However, one of the key aspects that makes one S&P 500 index fund better than another is the FEE.
A fund company that has excessive fees can have a negative aspect on your investment return. On the other hand, a company with a low fee, like the Vanguard Index Funds S&P 500, is very attractive among investors.
Another aspect that makes an S&P 500 index fund the best is the minimum investment. A minimum investment of $1,000 is more attractive to investors, especially beginner investor with little money to invest.
Here’s a list of of the best S and P 500 Index Funds to choose from.
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The Best S&P 500 Index Funds
- Vanguard Index Funds S&P 500
The Vanguard index fund S&P 500 is arguably ranks at the top of the best S and P 500 index funds. For one, Vanguard is a reputable company. Their fee is low. It has a reasonable minimum investment. Plus, it’s one of the largest funds on the market.
In addition, the S and P 500 index fund has a strong record of performing well over the short term as well as the long term.
The Vanguard S&P 500 ETF is also available as an admiral shares mutual fund. It seeks to tract the S&P 500 index, which composes of the 500 largest U.S. companies.
As of 5/24/2021, it has a market price of $385.28.
Its expense ratio is 0.03%, which is very reasonable.
The minimum investment is $3,000.
2. Schwab S&P 500 Index Fund
The Schwab S and P 500 index fund invests 80% or more of its assets in the 500 US stocks. One of the things that makes this fund very attractive to most investors, however, is its strong performance record. Below are some key aspects of this index fund:
- Minimum investment: $0
- Founded: May 18, 1997
- Company: Charles Schwab
- Expense ratio: 0.02
- AUM: $40.2 billion
- Return in 2019: 31.44%
- Yield: 1.95%
3. Fidelity 500 Index Fund
The Fidelity 500 index fund tracks the performance of the S& P 500.
- Minimum investment: $0
- Founded: February 17, 1988
- Company: Fidelity
- Expense ratio: 0.015%
- AUM: $213.4 billion
- Return: 31.47%
- Yield: 2.25%
4. SPDR S&P 500 ETF: most liquid
The SPDR S&P 500 ETF is the most liquid S&P 500 fund out there. That means it is easy to be traded, which in turns means its trading cost is pretty low. The issuing company for this fund is the State Street Global Advisors, one of the biggest in the industry. Here are some key aspect if the fund:
- Founded: January 22, 1993
- Company: State Street SPDR
- Expense ratio: 0.095%
- AUM: $265 billion
- Return in 2019: 31.22%
5. State Street S and P 500 Index Fund (SVSPX)
This fund tracks closely the Sand P 500 index. While this S and P 500 fund requires a minimum of $10,000 initial investment, its expense ratio is quite low. This makes it one of the best out there. Its unique features include:
- Minimum investment: $10,000
- Founded: December 29, 1992
- Company: State Street
- Expense ratio: 0.016%
- AUM: $1.5 billion
- Return in 2019: 31.26%
- Yield: 1.84
6. iShares Core S&P 500 ETF (IVV)
The iShare Core S&P 500 is one of the best out there and among the largest ETFs trading on the market today.
- Founded: May 15, 2000
- Company: iShares
- Expense ratio: 0.03%
- AUM: $279.3 billion
In conclusion, the Vanguard Index Funds S&P 500 is perhaps the best S&P 500 index funds out there. However, other funds such as the Schwab and the Fidelity are great options as well. Mainly because they too allow investors to gain exposure to the stocks of the S&P 500 at a relatively lower cost. They are also diversified and have lower risk. In short, these index funds are the best for long term investments, especially for retirement.
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