Best Index Funds for 2022 and Beyond

Are you thinking about investing in index funds? You may have heard about the popularity of this type of investment. Now you want to know about the best index funds in the market.

Why Invest in Index Funds?

– They tend to be lower-cost than actively managed funds, which can save investors money over time.  – They produce lower tax outcomes than other types of investments, which can save investors money on their taxes. That’s because, with index funds, you will buy and sell less, which means fewer taxable capital gains.

Index Funds vs. Managed Fund

Actively managed funds offer high returns with more risk. If you're more concerned with capital preservation and wealth creation, consider an index fund.

How Do Index Funds Work?

Index funds are typically structured as mutual or exchange-traded funds (ETFs). Both index funds aim to track the performance of a specific index, but they differ in a few key ways.

15 Best Index Fund

Vanguard S&P 500 Index Fund

VOO tracks the S&P 500 index and has an expense ratio of 0.03%, and it has returned an average of 11.8% per year over the past ten years.

1

SPDR S&P 500 ETF

SPY tracks the S&P 500 index with an expense ratio of 0.09%. It is the largest US ETF, with over $300 billion in assets.

2

Vanguard Total Stock Market Index Fund

VTSAX tracks the MSCI US Broad Market Index, which includes all US stocks. The fund has an expense ratio of 0.04% and has returned an average of 13.4% per year over the past ten years.

3

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