Low-cost index funds have revolutionized investing by providing affordable access to diversified market returns. According to Morningstar research, these passive investment vehicles often outperform actively managed funds while charging minimal fees, making them ideal for long-term wealth building. For investors just starting their journey with understanding index funds, these investment options offer broad market exposure without the high costs typically associated with active management. As Fidelity reports, the best low-cost index funds can help investors capture market returns while minimizing expenses that can eat into long-term gains.
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Summary Table
| Item Name | Price Range | Best For | Website |
|---|---|---|---|
| Fidelity ZERO Large Cap Index | 0% expense ratio | Cost-conscious investors | Visit Site |
| Schwab S&P 500 Index Fund | 0.02% expense ratio | S&P 500 exposure | Visit Site |
| Vanguard 500 Index Fund Admiral | 0.04% expense ratio | Long-term investors | Visit Site |
| Fidelity 500 Index Fund | 0.015% expense ratio | Large-cap exposure | Visit Site |
| Schwab Total Stock Market Index Fund | 0.03% expense ratio | Total market coverage | Visit Site |
| Vanguard Total Stock Market ETF | 0.03% expense ratio | ETF investors | Visit Site |
| iShares Core S&P 500 ETF | 0.03% expense ratio | ETF traders | See details |
| SPDR Portfolio S&P 500 ETF | 0.02% expense ratio | Cost-efficient trading | See details |
| JPMorgan BetaBuilders U.S. Equity ETF | 0.02% expense ratio | Broad market exposure | Visit Site |
| SoFi Select 500 ETF | 0.05% expense ratio | New investors | Visit Site |
10 Best Low-Cost Index Funds for Investors (2025)
Below you'll find detailed information about each option, including what makes them unique and their key benefits.
1. Fidelity ZERO Large Cap Index (FNILX)
A standout zero-fee index fund that tracks the largest U.S. companies with no expense ratio and no minimum investment requirement. Perfect for cost-conscious investors seeking broad market exposure. Learn more in our guide on low-cost index funds.
Key features:
- 0% expense ratio - completely free to own
- No minimum investment required
- Tracks 500+ large U.S. companies
2. Schwab S&P 500 Index Fund (SWPPX)
This low-cost S&P 500 index fund provides broad exposure to America's largest companies with a minimal 0.02% expense ratio. Schwab's fund offers automatic investment options and comprehensive online tools for portfolio tracking.
Notable features:
- 0.02% expense ratio
- No minimum investment
- Automated investment plans available
3. Vanguard 500 Index Fund Admiral Shares (VFIAX)
The original S&P 500 index fund maintains its reputation for reliability with a low 0.04% expense ratio and proven long-term performance. While it requires a $3,000 minimum investment, this fund is a cornerstone holding for serious long-term investors.
What you get:
- 0.04% expense ratio
- $3,000 minimum investment
- Access to Vanguard's research tools
4. Fidelity 500 Index Fund (FXAIX)
A highly efficient S&P 500 index fund offering broad exposure to America's largest companies. With no minimum investment requirement and a rock-bottom 0.015% expense ratio, it's an excellent choice for cost-conscious investors seeking core market exposure.
Key features:
- 0.015% expense ratio - among the lowest in its category
- No minimum investment
- Tracks 500 of America's largest companies
5. Schwab Total Stock Market Index Fund (SWTSX)
This comprehensive fund tracks the entire U.S. stock market, providing broader diversification than S&P 500-only funds. With a low 0.03% expense ratio and exposure to companies of all sizes, it's particularly suitable for investors wanting complete market coverage in a single fund. Learn more about building a diverse portfolio in our beginner's guide to investing.
Notable features:
- 0.03% expense ratio
- $0 minimum investment
- Access to entire U.S. stock market
6. Vanguard Total Stock Market ETF (VTI)
VTI offers complete U.S. market coverage in a highly liquid ETF format. With over $1.2 trillion in assets and a minimal 0.03% expense ratio, it's become a cornerstone holding for both individual and institutional investors seeking broad market exposure.
What you get:
- 0.03% expense ratio
- Exposure to over 3,800 stocks
- High trading volume for easy buying/selling
7. iShares Core S&P 500 ETF (IVV)
This ETF provides efficient exposure to the S&P 500 index with a remarkably low expense ratio of 0.03%. It's particularly popular among long-term investors seeking a core holding for their portfolios, with over $300 billion in assets under management.
Key features:
- Expense ratio: 0.03%
- Tracks 500 largest U.S. companies
- High trading volume for better liquidity
8. SPDR Portfolio S&P 500 ETF (SPLG)
SPLG offers another cost-effective way to track the S&P 500, matching its competitors with a 0.03% expense ratio. This ETF is especially suitable for smaller investors due to its lower share price compared to similar funds, making it easier to build positions gradually. Learn more about building a diversified portfolio in our complete guide to investing for beginners.
Notable features:
- Expense ratio: 0.03%
- Lower share price for easier entry
- Automatic dividend reinvestment available
9. JPMorgan BetaBuilders U.S. Equity ETF
JPMorgan's entry into the low-cost index space offers broad U.S. market exposure with an expense ratio of 0.02%. While newer than some competitors, it closely tracks the Morningstar U.S. Target Market Exposure Index, providing exposure to both large and mid-cap stocks.
What you get:
- Expense ratio: 0.02%
- Broader market coverage than S&P 500
- Tax-efficient management approach
10. SoFi Select 500 ETF
The SoFi Select 500 ETF (SFY) tracks 500 of the largest U.S. public companies, similar to traditional S&P 500 index funds but with an innovative fee structure. What sets it apart is its 0% management fee through at least June 30, 2025, making it one of the most cost-effective ways to access large-cap U.S. stocks. Learn more about index fund basics in our complete guide to index funds.
Key features:
- 0% expense ratio (guaranteed through June 2025)
- No minimum investment required
- Trades commission-free on SoFi Invest platform
- Auto-rebalancing to maintain diversification
Final Words
Low-cost index funds remain one of the smartest ways to build long-term wealth, with expense ratios in our top picks ranging from 0.03% to 0.15%. Whether you choose Vanguard's time-tested offerings or Fidelity's zero-fee funds, the key is to start investing consistently and stay committed to your investment strategy for the long haul.
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Frequently Asked Questions About Low-Cost Index Funds
What is the lowest-cost index fund available in the US market?
The Fidelity ZERO Large Cap Index (FNILX) has a 0% expense ratio and no minimum investment requirement, making it the lowest-cost option for broad large-cap U.S. stock exposure. This fund tracks the S&P 500 index and is completely free to invest in.
What are some good low-cost S&P 500 index fund options?
Several excellent options include the Schwab S&P 500 Index Fund (SWPPX) with a 0.02% expense ratio, Vanguard 500 Index Fund Admiral Shares (VFIAX) at 0.04%, and Fidelity 500 Index Fund (FXAIX). These funds all provide broad exposure to the largest U.S. companies through the S&P 500 index.
Are there low-cost options for investing in the total US stock market?
Yes, the Schwab Total Stock Market Index Fund (SWTSX) and Vanguard Total Stock Market ETF (VTI) both offer complete U.S. market coverage with very low expense ratios of 0.03%. These funds provide broader diversification than S&P 500 funds by including mid-cap and small-cap stocks.
What are the most affordable ETF alternatives to index mutual funds?
Several low-cost ETF options include the iShares Core S&P 500 ETF (IVV) and SPDR Portfolio S&P 500 ETF (SPLG), both with expense ratios of 0.03% or lower. These ETFs track the same indexes as mutual funds but can be traded throughout the day like stocks.
