2017 RANKING & REVIEWS
TOP RANKING BEST INDEX FUNDS
Introduction: The Best Performing Index Funds on Today’s Market
Learning how to make money through investment options is something that most all people would like to learn. Finding the best S&P index fund to invest in is a great starting point for people who are looking for a short cut toward understanding how the market works.
The top index funds are usually considered a safe, long-term investment for people who are new to the investing world.
Award Emblem: Best 6 Index Funds
In this brief article, AdvisoryHQ will review some of the best index funds to invest in. We’ll begin by explaining what S&P index fund or other low-cost index funds are. Next, we offer a comparative table of the main features of the best S&P 500 index fund.
In our FAQ section, we offer clues on how to be successful investing in index funds and the top performing index funds. We also offer information on where you can find reviews of the best low-cost index funds. Finally, we offer a complete review of the six top low-cost index funds on the market today.
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What Is an S&P 500 Index Fund or Low-Cost Index Funds?
There are thousands of different equities and mutual funds on the market that you could invest in. The top index funds, however, are funds grouped together by different committees or companies. Some of the top index funds are indexed by groups such as the Dow Jones Industrial Average, NASDAQ, and the S&P 500.
Many market analysts have come to believe that the S&P index fund is the most accurate barometer of the U.S. equity market. According to Investopedia.com:
“S&P 500 Index funds allow investors to establish a core allocation in large-cap U.S. equities, which have been advised by one of the most iconic American investors, Warren Buffet, also known as the Oracle of Omaha. S&P 500 Index funds seek to replicate the performance of the benchmark index by investing in S&P 500 constituents with similar weights.”
Furthermore, the top index funds on the market that are managed by large companies such as Fidelity or Vanguard almost always have large numbers of investors. The more investors an S&P index fund has, the more effective those low-cost index funds can manage the fund, provide needed liquidity, and buy shares for holdings.
AdvisoryHQ’s List of the Top 6 Best Index Funds
List is sorted alphabetically (click any of the best low-cost index funds names below to go directly to the detailed review section for that index fund):
- Fidelity Spartan 500 Index
- Guggenheim Defensive Equity ETF
- iShares U.S. Preferred Stock ETF
- PowerShares S&P 500 Low Volatility Portfolio
- Schwab S&P 500 Index
- Vanguard 500 Index
Top 6 Best Index Funds | Brief Comparison
Best Index Funds | Expense | Minimum Investment | Other Pertinent Information |
| Fidelity Spartan 500 Index | 0.095% | $2,500 | 80% invested in stocks on the index |
| Guggenheim Defensive Equity ETF | 0.65% | N/A | Over $210 million in total managed assets |
| iShares U.S. Preferred Stock ETF | 0.47% | N/A | Over $16 billion in net assets |
| PowerShares S&P 500 Low Volatility Portfolio | 0.25% | N/A | Over 90% of portfolio in stocks on the index |
| Schwab S&P 500 Index | 0.09% | $100 | 2% portfolio turnover rate |
| Vanguard 500 Index | 0.17% | N/A | Over $200 billion in total net assets |
Table: Top 6 Best Index Funds to Invest in| Above list is sorted alphabetically
How to Be Successful Investing in Index Funds and the Top Performing Index Funds
To be successful investing in index funds, you need to do your homework. Finding the best index funds to invest in requires more than simply purchasing the first low-cost index funds that you come across.
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The most important thing to consider when searching for the top index funds is to find an S&P index fund with the lowest expense ratio. The best index funds are those that have the lowest expenses, as these best-performing index funds will generate larger returns over time.
Since the top index funds are passively managed, meaning that they only attempt to match the holdings of an index, costs are almost always lowest. Whereas actively managed funds require more involvement that drives up the expense ratio, the best S&P 500 index fund will almost always have much lower costs.
Furthermore, finding the best index funds requires much more than simply buying up the securities listed in the index. To be successful with low-cost index funds, you will need to determine how much to invest in each share on the index.
“To create an index fund, and insure good performance tracking, the management team and supporting staff will determine how much (the number of shares) of each holding on the list to purchase. The idea is to match the percentage ‘weighting’ of the index itself.”
The advantage of investing in the best S&P 500 index fund is that your “management team” is taking advice from Warren Buffet, one of the most well-respected and successful investors in the United States. Additionally, the top index funds will usually try to mirror the S&P 500 index by purchasing larger amounts of shares of the stocks with the greatest capitalization.
If you invest in low-cost index funds that don’t hold the stocks with the highest capitalization as the largest percentage of the overall fund, then you probably haven’t found the best index funds on the market.
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Where Can You Find the Best S&P 500 Index Fund?
If you feel that investing in the top index funds is the best investment strategy for you and your personal financial goals, where can you go to find the best index funds and/or low-cost index funds available? Below, we list a few different places online where you can find the best index funds to invest in.
- Kiplinger: This well-known financial website offers a wealth of information on the best index funds currently available on the market. You can read quality advice from Kiplinger on how to find the best performing index funds here.
- John Bogle: Bogle is one of the founders of Vanguard Investments, one of the leaders in finding the best index funds on the market. You can learn a ton of information on how to invest in the best index funds by reading Bogle’s book The Little Book of Common Sense Investing that you can find here.
- Online Brokers: If you feel that you don’t have the financial expertise to successfully find and invest in the top index funds, then you can use an online brokerage. While there are certain fees involved, you will benefit from the wealth of knowledge accumulated by many financial experts. E*TRADE is a great option to start with to help you find the top index funds.
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Detailed Review – Top Ranking Best Index Funds
Below, please find the detailed review of each of the top index funds.We have highlighted some of the factors that allowed these best performing index funds to score so highly in our selection ranking.
Fidelity Spartan 500 Index Review
The Fidelity Spartan 500 Index is another of the best index funds on the market today. It has an extremely low expense ratio at 0.095%. This quality S&P 500 index fund will invest up to 80% of its portfolio in common stocks. If you are looking for low-cost index funds that will give you great exposure to a wide variety of stocks across the S&P 500 index, this option is for you.
Image Source: Fidelity Investments
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Guggenheim Defensive Equity ETF Review
The Guggenheim Defensive Equity ETF is another of the top performing index funds on the market today. Though considerably smaller than some of the other indexes reviewed here, this ETF fund is unique because of the defensive position it assumes.
According to Guggenheim this top S&P index fund “seeks to deliver a more defensive core position, while maintaining potential to participate in up market periods.” This positions makes Guggenheim one of the best index funds for people looking for limited risk in their investments.
iShares U.S. Preferred Stock ETF Review
The iShares U.S. Preferred Stock ETF is another of the top low-cost index funds out there. This quality stock option has yielded an 8.34% annual return, making it a sound investment option among the top index funds available. Furthermore, if you are looking for one of the top index funds that invests in the financial sector, the iShares U.S. Preferred Stock is for you, as it invests in a number of large banks, such as Wells Fargo, Citi Group, HSBC, and others.
Image Source: iShares
PowerShares S&P 500 Low Volatility Portfolio Review
Another quality investment option for low-cost index funds is the Power Shares S&P 500 Low Volatility Portfolio. If you are looking for a safe investment that will protect your wealth during some of the worst economic times, then PowerShares is for you. During the 10 worst returning months recorded on the S&P 500 index, this index actually rose during one of the 10 worst markets since 2011.
Schwab S&P 500 Index Review
The Schwab S&P 500 Index is also a quality option for people looking for the top index funds and low-cost index funds. While Schwab does have a slightly higher expense ratio than some of its competitors, their minimum investment is only $100, which makes this one of the best index funds for small investors and retail investors.
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Vanguard 500 Index Review
Lastly, the Vanguard 500 Index is largely considered to be the cream of the crop when it comes to the best index funds on the market. This index was created in 1976, and as of 2015, it generated a respectable 10.99% average annual return, making this one of the best index funds to invest in if you want a solid return over the long term.
Image Source: Vanguard Investments
Conclusion – The Top Performing Index Funds to Secure a Healthy Financial Future
If you have been looking for a quality option for your investments, low-cost index funds are a relatively safe, long-term investment plan that can promise you a decent return on your investment. The top index funds almost always offer some of the lowest costs and expense ratios on the market.
Additionally, the best low-cost index funds are offered by companies that understand the art of indexing and weighting the different funds appropriately in order to receive the highest return. The top index funds that we have reviewed above are offered by some of the companies with the best reputation in managing the best index funds today.
Whether you choose the Fidelity Spartan 500 Index, the Guggenheim Defensive Equity ETF, the iShares U.S. Preferred Stock ETF, the PowerShares S&P 500 Low Volatility Portfolio, the Schwab S&P 500 Index, the Vanguard 500 Index, or any other low-cost index funds on the market, you should find yourself on your way to a rock solid long-term investment.
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Reasonable efforts have been made by AdvisoryHQ to present accurate information, however all info is presented without warranty. Review AdvisoryHQ’s Terms for details. Also review each firm’s site for the most updated data, rates and info.
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