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The average index fund now charges 0.06%, and the best charge almost nothing. That fee gap - not stock picking - is the most reliable edge a long-term investor gets. On $10,000, a 0.02% fund costs $2 a year; a 1% actively managed fund costs $100, every year, win or lose.
These nine funds cover the core of a portfolio (S&P 500, growth, small caps, international) plus income tilts (dividends, real estate) and one thematic satellite. Expense ratios below were checked on September 28, 2026 against fund-provider and Morningstar data.
Last updated: September 28, 2026. Expense ratios verified against fund providers and Morningstar. *Marked ratios change - confirm at the fund page before investing.
| Fund | Ticker | Expense ratio | Focus | Where to buy |
|---|---|---|---|---|
| Fidelity ZERO Large Cap Index Fund | FNILX | 0.00% | S&P 500 large caps | Check rates with Fidelity |
| Schwab S&P 500 Index Fund | SWPPX | 0.02% | S&P 500 | Check rates with Schwab |
| Vanguard Growth ETF | VUG | 0.03% | U.S. large-cap growth | Check rates with Vanguard |
| Schwab U.S. Large-Cap Growth ETF | SCHG | 0.04%* | Large-cap growth | Check rates with Schwab |
| SPDR S&P Dividend ETF | SDY | 0.35% | Dividend aristocrats | Check rates with Fidelity |
| Vanguard Real Estate ETF | VNQ | 0.13% | REITs | Check rates with Vanguard |
| Vanguard Russell 2000 ETF | VTWO | 0.06% | U.S. small caps | Check rates with Vanguard |
| Schwab Emerging Markets Equity ETF | SCHE | 0.06% | Emerging markets | Check rates with Schwab |
| ROBO Global Robotics and Automation ETF | ROBO | 0.95% | Robotics and AI | Check rates with Fidelity |
Expense ratio: 0.00% · focus: S&P 500 large caps.
FNILX charges literally nothing - the 'ZERO' is a 0% expense ratio, with no minimum investment. It tracks S&P 500-style large caps and is up about 11% so far in 2026. Only catch: you must hold it at Fidelity.
Expense ratio: 0.02% · focus: S&P 500.
SWPPX tracks the actual S&P 500 for 0.02% - that is $0.20 a year per $1,000 invested - with no minimum. The default first index fund for many Schwab account holders.
Expense ratio: 0.03% · focus: U.S. large-cap growth.
VUG holds about 150 U.S. large-cap growth stocks, heavy in tech, for a 0.03% expense ratio. It has ridden the AI buildout - the strongest performer on this list in 2026's first eight months.
Expense ratio: 0.04%* · focus: Large-cap growth.
Schwab's answer to VUG tracks the Dow Jones U.S. Large-Cap Growth index. Check the current expense ratio at Schwab - it has been among the lowest in the category.
Expense ratio: 0.35% · focus: Dividend aristocrats.
SDY holds the S&P High Yield Dividend Aristocrats - companies that have raised dividends for 20+ straight years. It tends to hold up better when growth stocks slump. The 0.35% expense ratio is the price of that screen.
Expense ratio: 0.13% · focus: REITs.
VNQ spreads your money across U.S. REITs - warehouses, data centers, apartments, cell towers - for 0.13%. A straightforward way to add real-estate income without being a landlord.
Expense ratio: 0.06% · focus: U.S. small caps.
VTWO tracks the Russell 2000 for 0.06%. Small caps have lagged the mega-caps, which is exactly why contrarians buy the index instead of picking winners.
Expense ratio: 0.06% · focus: Emerging markets.
SCHE holds large- and mid-cap stocks across China, Taiwan, India and 20+ other emerging markets for 0.06%. The cheapest clean way to diversify beyond the U.S.
Expense ratio: 0.95% · focus: Robotics and AI.
ROBO is the expensive outlier at 0.95% - you pay for a curated basket of robotics and automation companies. It was up over 16% in the first eight months of 2026, but thematic funds swing hard both ways. Keep it a small slice.
The mutual funds on this list are proprietary - FNILX trades only at Fidelity, SWPPX and SCHG only at Schwab. The ETFs (VUG, SDY, VNQ, VTWO, SCHE, ROBO) trade commission-free at any US brokerage, including the app-based ones.
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Cost first: every core fund here charges 0.06% or less except where a specific strategy (dividends, REITs, robotics) justifies more. We cross-checked expense ratios with fund providers and Morningstar on September 28, 2026, and pulled 2026 performance context from Motley Fool's September index-fund roundup. The buttons go to the brokerages where you can buy these funds, and Financialist may earn a referral fee from some of them. That does not change the list. This is educational content, not investment advice.