Top-Performing Index Funds in July 2025 and Investment Strategies
For long-term investors seeking growth with minimal cost, low-cost index funds—both mutual funds and ETFs—are a proven strategy. These funds offer broad diversification, track major market indexes, and feature some of the lowest expense ratios in the industry.
**Top U.S. Broad Market Index Funds**
| Fund Name | Ticker | Expense Ratio | Key Features | |---------------------------------------------|--------|--------------|--------------------------------------------------------| | Fidelity 500 Index Fund | FXAIX | 0.015% | No minimum investment, ultra-low cost[1][3] | | Fidelity Total Market Index Fund | FSKAX | 0.015% | Tracks entire U.S. stock market, also no minimum[3] | | Schwab S&P 500 Index Fund | SWPPX | 0.02% | No minimum, very low cost[1][3] | | Fidelity Zero Large Cap Index Fund | FNILX | 0.00% | Zero expense ratio, Fidelity-only[1] | | T. Rowe Price Equity Index 500 Fund | PREIX | Competitive | $2,500 minimum, still relatively low cost[1] |
**Top U.S. Broad Market Index ETFs**
| Fund Name | Ticker | Expense Ratio | Key Features | |---------------------------------------------|--------|--------------|------------------------------------------------------| | BNY Mellon US Large Cap Core Equity ETF | BKLC | 0.00% | Zero expense ratio, large-cap focus[3] | | SPDR Portfolio S&P 500 ETF | SPLG | 0.02% | Very low cost, tracks S&P 500[3] | | JPMorgan BetaBuilders U.S. Equity ETF | BBUS | 0.02% | Broad U.S. equity exposure, low cost[3] | | iShares Core S&P 500 ETF | IVV | 0.03% | Highly liquid, large-cap U.S. stocks[3] | | Vanguard Total Stock Market ETF | VTI | 0.03% | Entire U.S. stock market, extremely popular[3] | | Vanguard S&P 500 ETF | VOO | 0.03% | Tracks S&P 500, very low cost[3] |
**International and Specialized Index Funds**
For global diversification, consider funds like the **Vanguard FTSE Europe ETF (VGK)** or **Vanguard European Stock Index Fund (VEUSX)** for developed international markets[5]. For inflation protection, **iShares Short-Term TIPS Bond Index (BKIPX)** and **Schwab US TIPS ETF (SCHP)** are top choices[5].
**Why Choose Low-Cost Index Funds?**
- **Lower costs:** Expense ratios are a fraction of those for actively managed funds—often under 0.05%[1][3]. - **Broad diversification:** These funds track major indexes, spreading risk across hundreds or thousands of stocks. - **Tax efficiency:** Index funds typically generate fewer capital gains distributions than active funds[5]. - **No manager risk:** Performance depends on the index, not a star fund manager[5].
**How to Get Started**
- **Pick a broad U.S. market fund** (e.g., FXAIX, FSKAX, SWPPX, VTI, VOO) as your core holding[1][3]. - **Consider international diversification** with funds like VGK or VEUSX for non-U.S. exposure[5]. - **Use ETFs for flexibility and potentially lower minimums**—many can be bought for the price of a single share[3]. - **Automate contributions** to take advantage of dollar-cost averaging over the long term.
**Final Recommendations**
For most long-term investors, **FXAIX**, **FSKAX**, **SWPPX**, **VTI**, and **VOO** are among the best low-cost choices for U.S. equity exposure[1][3]. For those seeking zero-cost options, **FNILX** (Fidelity only) and **BKLC** (ETF) stand out[1][3]. International and inflation-protected funds can be added for further diversification and risk management[5].
- In the realm of personal finance, low-cost index funds, both mutual funds and ETFs, are highly recommended for long-term investors aiming for growth at minimal cost.
- Comparing various U.S. broad market index funds like FXAIX, FSKAX, and SWPPX, each offers broad diversification and low expense ratios, often under 0.05%.
- Personal-finance tools such as calculators and apps can help individuals compare expense ratios, key features, and minimum investments when selecting the right index funds for their portfolio.
- For personal savings on taxes, choosing low-cost index funds is advantageous due to their tax efficiency, as they generate fewer capital gains distributions than actively managed funds.
- Investing in retirement accounts or other long-term investment vehicles can benefit significantly from low-cost index funds' saving potential, as performance depends on the index rather than a manager's decisions.
- While building credit is essential for one's financial well-being, proper management of personal finances through saving, investing, and taking expert advice should also be prioritized.
- To optimize personal finance and achieve financial independence, utilizing various finance and investing tools and taking advantage of zero-cost options like FNILX and BKLC can help maximize savings and returns.
- Seeking trusted advice from financial experts and conducting thorough research using personal-finance tools is crucial to saving for retirement, managing debt, and making wise investment decisions, leading to a secure financial future.
