10 Best Low-Cost Index Funds to Buy

We all love index funds and we especially love low cost.  Here is the latest list from U.S. News Invested.  Hope everyone is enjoying their weekend.  

DECEMBER 8, 2022 Invested Advice, rankings and stock market news for investors.

Good morning, investors. Markets dip, and investor confidence in Carvana reaches a low point. Highlights of today's newsletter include our market insights plus these new articles: 10 Best Low-Cost Index Funds to Buy 7 Best Long-Term ETFs to Buy and Hold 7 Best Marijuana Stocks to Buy for 2023 TODAY'S FEATURED STORY 10 Best Low-Cost Index Funds to Buy Whether in mutual fund or exchange-traded fund, or ETF, form, index funds are a great pick for beginner and advanced investors alike. Studies have shown that most actively managed funds fail to outperform their index counterparts over the long term. Even if an active fund manages to outperform, the difference in gross returns is often eaten up by the higher expense ratios charged. With an index fund, investors can instead focus on controllable sources of risk: under-diversification, high fees and poor investment behaviors. While an index fund won't beat the market, it's also much less likely to underperform it. As Jack Bogle, the founder of Vanguard and pioneer of the index fund, put it: "gunning for average is your best shot at finishing above average." Here are the 10 best low-cost index funds to buy today: Fidelity 500 Index Fund (ticker: FXAIX). The benchmark most investors compare their returns to is the S&P 500. The index tracks 500 large-cap U.S. companies representative of the broad U.S. market from all 11 stock market sectors and is notoriously difficult to beat. Many actively managed funds and hedge funds have tried and failed to outperform it over long periods of time. Investors who wish to replicate its performance can buy FXAIX, which is one of Fidelity's longest-running and most popular mutual funds. Since its inception in 1988, FXAIX has returned an annualized 10.5% with dividends reinvested. Another bonus is its rock-bottom expense ratio, which currently sits at just 0.015%, or $1.50 for every $10,000 invested, annually. Vanguard Balanced Index Fund Admiral Shares (VBIAX). VBIAX remains a popular hands-off investment for many mutual fund investors thanks to its low-cost structure. The fund itself is comprised of two allocations: U.S. stocks, which track the Dow Jones U.S. Total Stock Market Index; and U.S. bonds, which track the Bloomberg Aggregate Bond Index. These two segments are held in a 60/40 stocks/bonds allocation, which has historically resulted in a portfolio with a good risk-adjusted return suitable for a wide range of investors. Thus, VBIAX is a great way of owning both the U.S. stock and bond markets passively. The fund costs an expense ratio of 0.07% and requires a minimum investment of $3,000. Click here to continue reading. 10 best low-cost index funds: Fidelity 500 Index Fund (FXAIX) Vanguard Balanced Index Fund Admiral Shares (VBIAX) Schwab Total Stock Market Index Fund (SWTSX) Vanguard Total International Stock Index Fund Admiral Shares (VITAX) SPDR S&P 500 ETF Trust (SPY) iShares Core S&P 500 ETF (IVV) iShares Core U.S. Aggregate Bond ETF (AGG) iShares U.S. Treasury Bond ETF (GOVT) Invesco Nasdaq 100 ETF (QQQM) Vanguard Total World Stock ETF (VT)