1.Fidelity 500 Index
FXAIX (NASDAQ)
The Fidelity 500 Index (FXAIX) offers a low-cost entry into the U.S. large-cap market with an expense ratio of just 0.015%. Investors can benefit from a 1-year return of 15.64% and an impressive 5-year return of 85.66%, making it an attractive option for those seeking broad market exposure. With a dividend yield of 1.12%, this fund stands out for its ability to provide reliable income while tracking the performance of the S&P 500.
Pros:
- Ultra-low expense ratio
- Tracks S&P 500 effectively
Cons:
- Market risk exposure
- Dependence on large-cap performance
2.Vanguard 500 Index
VFIAX (NASDAQ)
Vanguard 500 Index (VFIAX) is an attractive option for investors seeking reliable large-cap performance with a low expense ratio of just 0.04%. With a solid dividend yield of 1.11% and impressive returns of 15.63% over the past year and 85.34% over the last five years, this fund closely mirrors the S&P 500, making it a strong choice for those looking to align with market trends while minimizing costs. Top-rated by analysts, VFIAX provides a dependable pathway to invest in financially healthy companies.
Pros:
- Low expense ratio
- Reliable large-cap performance
Cons:
- Irregular distribution may be less appealing
- Market risk exposure
3.Schwab S&P 500 Index
SWPPX (NASDAQ)
The Schwab S&P 500 Index (SWPPX) is an attractive option for investors seeking a low-cost core portfolio holding, featuring a minimal expense ratio of just 0.02%. With a solid 1-year return of 15.34% and an impressive 5-year return of 85.62%, this top-rated fund has earned a 4-star rating from Morningstar, reflecting its strong risk-adjusted performance among its peers. Currently, SWPPX holds a consensus rating of Moderate Buy, supported by 410 buy ratings, indicating positive sentiment among analysts.
Pros:
- Low expense ratio
- Strong historical performance
Cons:
- Market risk exposure
- Annual distribution may be less appealing for some investors
4.Fidelity Total Market Index
FSKAX (NASDAQ)
Fidelity Total Market Index (FSKAX) is an attractive option for investors seeking comprehensive diversification across the entire U.S. stock market. With a low expense ratio of just 0.015% and a solid dividend yield of 1.01%, it has demonstrated impressive returns, achieving a 15.26% gain over the past year and a remarkable 75.96% over the last five years. Morningstar has recognized this fund with a 3-star rating, reflecting its competitive risk-adjusted performance within its category.
Pros:
- Comprehensive diversification
- Strong historical returns
Cons:
- Higher expense ratio compared to some index funds
- Market risk exposure
5.BNY Mellon US Large Cap Core Equity ETF
BKLC (NYSE)
The BNY Mellon US Large Cap Core Equity ETF (BKLC) offers a compelling opportunity for investors seeking low-cost exposure to large-cap U.S. stocks, featuring a zero expense ratio. With a solid 1-year return of 16.17% and an impressive 5-year return of 87.18%, this passively managed fund tracks the Solactive GBS United States 500 index, representing the 500 largest U.S. companies. Additionally, BKLC provides a dividend yield of 1.05%, making it an attractive option for those looking for reliable income alongside capital growth.
Pros:
- Zero expense ratio
- Exposure to large-cap stocks
Cons:
- Non-diversified
- Potential liquidity issues
6.Fidelity ZERO Large Cap Index
FNILX (NASDAQ)
Fidelity ZERO Large Cap Index (FNILX) is an attractive option for cost-conscious investors, boasting a zero expense ratio while tracking a large-cap index similar to the S&P 500. With a solid one-year return of 15.55% and a five-year return of 84.56%, this fund stands out as a highly rated choice, earning an A- from analysts. Additionally, it offers a dividend yield of 1.02%, making it a compelling choice for those looking to grow their portfolios without incurring high fees.
Pros:
- Zero expense ratio
- Tracks large-cap index effectively
Cons:
- Market risk exposure
- Dependence on large-cap performance
7.SPDR Portfolio S&P 500 ETF
SPLG (NYSE)
SPDR Portfolio S&P 500 ETF (SPLG) stands out as an attractive option for long-term investors due to its low expense ratio of just 0.02% and its strong historical performance. With a 1.12% dividend yield, a 1-year return of 16.05%, and an impressive 5-year return of 85.83%, this ETF is well-positioned for those seeking broad diversification and efficient trading. Notably, SPLG will rebrand to State Street SPDR Portfolio S&P 500 ETF (SPYM) on October 31, 2025, reflecting its commitment to enhancing investor engagement.
Pros:
- Low costs
- Broad diversification
Cons:
- Market risk exposure
- Potential changes in fund management
Final Words
As you consider your investment options this February 2026, remember that low-cost index funds like the Fidelity Total Market Index can offer substantial returns with minimal expenses. Take time to compare different funds and conduct your own research to ensure you make informed decisions that align with your financial goals.
Frequently Asked Questions
The Fidelity Total Market Index (FSKAX) has returned 1.64% year-to-date and 15.26% over the past year. Additionally, it has impressive returns of 68.49% over the last three years and 254.74% over the past decade.
The Fidelity Total Market Index fund has a very low expense ratio of 0.015%, making it an attractive option for cost-conscious investors seeking diversification in the U.S. stock market.
The Fidelity Total Market Index (FSKAX) distributes dividends semi-annually. The next dividend payment is $1.7860, with the previous dividend date being December 22, 2025.
Investing in index funds such as FSKAX carries market risks, as the fund's performance is linked to the overall market. Additionally, while they offer diversification, they cannot completely eliminate the risk of loss during market downturns.
When choosing the best low-cost index fund, consider factors such as the expense ratio, historical performance, and the types of assets included in the fund. It's also wise to review the fund's investment strategy and risk profile to ensure it aligns with your financial goals.
The Fidelity Total Market Index (FSKAX) has a dividend yield of approximately 1.01%. This yield can provide investors with consistent income as part of their overall investment strategy.
