Index fund assets have surged past $10 trillion in the U.S. alone, and it's easy to see why — keeping costs low is one of the most reliable ways to protect long-term returns. Data from the Investment Company Institute shows index funds now command a massive share of total fund assets, outpacing actively managed alternatives year after year. If you're serious about building wealth without paying for underperformance, pairing the right low-cost fund with solid free budget templates can make a real difference. These five funds offer near-zero fees, broad diversification, and proven track records — and some even qualify as free money opportunities when you consider what you save on fees over decades. Let's get started!
Quick Answer
Low-cost index funds track market indexes with minimal fees, typically under 0.10% expense ratios. U.S. index fund assets exceed $10 trillion, outpacing actively managed funds annually. Top options from Vanguard, Fidelity, and Schwab offer broad diversification at near-zero cost, making them one of the most reliable strategies for long-term wealth building.
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Summary Table
| Item Name | Price Range | Best For | Website |
|---|---|---|---|
| Fidelity Zero Large Cap Index Fund | 0% expense ratio, $0 minimum | Cost-obsessed investors wanting zero fees on U.S. large caps | Visit Site |
| State Street SPDR Portfolio S&P 500 ETF | 0.02% expense ratio | S&P 500 exposure at near-zero cost with ETF flexibility | Visit Site |
| Schwab U.S. Broad Market ETF | 0.03% expense ratio, $0 minimum | Total U.S. market coverage on a tight budget | Visit Site |
| Vanguard Total World Stock ETF | 0.07% expense ratio | Global diversification across U.S. and international stocks | Visit Site |
| iShares Core Dividend ETF | 0.05% expense ratio | Income-focused investors seeking low-cost dividend growth | Visit Site |
5 Top Low-Cost Index Funds for 2026
Below you'll find detailed information about each option, including what makes them unique and their key benefits.
The Fidelity Zero Large Cap Index Fund (FNILX) is one of the most compelling low-cost index funds available, carrying a 0.00% expense ratio — meaning investors pay absolutely nothing in annual management fees. It tracks large U.S. companies similar to the S&P 500 without the licensing costs passed on to shareholders, making it ideal for cost-conscious long-term investors building wealth passively.
Key details:
- Expense ratio: 0.00% — no annual fees whatsoever
- No investment minimum to get started
- Available exclusively through Fidelity accounts
The SPDR Portfolio S&P 500 ETF (SPLG) offers direct S&P 500 index exposure at just a 0.02% expense ratio, making it one of the cheapest ways to track America's 500 largest companies. Compared to the more widely known SPY (0.0945%), SPLG delivers nearly identical performance at a fraction of the cost — a meaningful difference compounded over decades of investing.
Key details:
- Expense ratio: 0.02% — significantly cheaper than SPY
- Tracks all 500 S&P 500 holdings with high liquidity
- Lower share price than SPY, making it accessible to smaller investors
Schwab's U.S. Broad Market ETF (SCHB) offers diversified exposure to nearly 2,500 U.S. stocks — far more than a standard S&P 500 fund — at an expense ratio of just 0.03%. For index investors who want total-market coverage rather than only large-cap stocks, SCHB delivers that breadth at a price that barely registers as a cost.
Key details:
- Expense ratio: 0.03% annually
- Covers large-, mid-, and small-cap U.S. equities
- Trades like a stock — no minimum purchase beyond one share
The Vanguard Total World Stock ETF (VT) is one of the broadest low-cost index funds available, tracking over 9,500 stocks across developed and emerging markets worldwide in a single holding. With an expense ratio of just 0.07%, it gives investors instant global diversification without paying for active management. It's ideal for hands-off investors who want one-fund exposure to the entire global equity market.
Key details:
- Expense ratio: 0.07% annually
- Covers U.S. and international stocks in one ETF
- No minimum investment beyond one share price
The iShares Core Dividend ETF (DIVB) brings passive income into the index investing equation by tracking a broad basket of U.S. dividend-paying stocks at a minimal 0.05% expense ratio. Unlike actively managed dividend funds that charge significantly more, this ETF keeps costs down while delivering regular income distributions. It suits income-focused investors who still want the cost efficiency of passive index strategies.
Key details:
- Expense ratio: 0.05% annually
- Quarterly dividend distributions
- Broad diversification across dividend-paying sectors
Final Words
Whether you prioritize rock-bottom fees, broad diversification, or beginner simplicity, these five low-cost index funds give you a solid starting point. Pair your choice with expense tracking tools to monitor how your contributions grow over time.