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Investing in an S&P 500 index fund provides access to those returns without having to own and manage 500 individual stocks.
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S&P 500 index funds remain some of the most popular investment vehicles. At the end of 2024, investors had roughly $20 trillion indexed or benchmarked to the S&P 500. If you’re considering adding your wealth to that number, now is the right time to research high-quality S&P 500 index fund options.
Why Choose S&P 500 Index Funds?
The S&P 500 includes 500 of the largest and most successful U.S. public companies. Over the long term, these companies have delivered about 10% average annual returns. Recent performance has been even stronger, with the index gaining more than 25% in 2023 and 2024, and nearly 15% in 2025 through mid-November.
Investing in an S&P 500 index fund provides access to these returns without managing 500 individual stocks.
Criteria Used To Select These S&P 500 Funds
Six of the funds on this list were chosen for their low expense ratios and strong 10-year average returns.
- Expense ratio. Index funds aim to replicate their benchmark, but expenses create a performance gap. Lower fees help reduce that gap so investors keep more of their returns.
- 10-year average return. Performance varies only by a few basis points, but even small differences can compound meaningfully over time.
The seventh fund is an equal-weight S&P 500 fund, offering the same holdings in a different weighting structure—an appealing choice if you’re concerned about over-exposure to the index’s largest companies.
7 Best S&P 500 Index Funds To Invest in for 2026
Below are six standard S&P 500 index funds, plus one equal-weight option.
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Table data source: Fund websites
Datawrapper
A review of each fund follows. Metrics are sourced from fund websites. The author is a longtime investor in VOO.
1. Fidelity 500 Index Fund (FXAIX)
Fidelity 500 Index Fund by the numbers:
- Expense ratio: 0.015%
- NAV: $234.18
- 10-year average return: 14.6%
- Year launched: 1988
Fidelity 500 Index Fund Overview
FXAIX is a mutual fund that settles trades once daily after the market closes. The closing price is the fund’s net asset value (NAV).
Like most funds on this list, FXAIX holds all S&P 500 stocks, weighted by market capitalization. The largest companies—such as Nvidia (NVDA) and Microsoft (MSFT)—have the greatest influence on returns.
Why FXAIX Is A Top Choice
FXAIX leads peers with the highest 10-year average return, ahead by just a few basis points—small differences that can matter over long time horizons.
Its performance advantage comes from its industry-leading 0.015% expense ratio. The next lowest competitor charges 0.02%.
There is a zero-expense S&P 500 fund launched this year by Empower, but it’s excluded because it’s available only in certain retirement plans.
2. State Street SPDR Portfolio S&P 500 ETF (SPYM)
State Street SPDR Portfolio S&P 500 ETF by the numbers:
- Expense ratio: 0.02%
- Market price: $79.04
- 10-year average return: 14.6%
- Year launched: 2005
SPYM Overview
SPYM is an ETF that trades throughout the day at market prices. These prices can differ slightly from NAV but typically converge quickly.
The fund holds all S&P 500 stocks, weighted by market cap. It was designed as a lower-fee alternative to the original SPY ETF.
Why SPYM Is A Top Choice
SPYM offers a low 0.02% expense ratio, a modest share price and ETF flexibility. Its 10-year return trails FXAIX by only 2 basis points, mostly due to slightly higher fees.
Its sub-$100 share price also makes it appealing for budget-conscious investors.
3. iShares Core S&P 500 ETF (IVV)
iShares Core S&P 500 ETF by the numbers:
- Expense ratio: 0.03%
- Market price: $674.96
- 10-year average return: 14.6%
- Year launched: 2000
IVV Overview
Launched in 2000, IVV fully replicates the S&P 500 using index-matched weights. It is the second-largest S&P 500 ETF by assets.
Why IVV Is A Top Choice
IVV’s low 0.03% expense ratio contributes to consistently strong performance. It also carries a Morningstar five-star rating and a Gold medal, indicating top-tier risk-adjusted returns and expectations of future outperformance.
Despite its slightly higher fee, IVV has delivered a nearly identical 10-year return to SPYM, demonstrating the fund’s efficiency.
4. Vanguard S&P 500 ETF (VOO)
Vanguard S&P 500 ETF by the numbers:
- Expense ratio: 0.03%
- Market price: $617.83
- 10-year average return: 14.6%
- Year launched: 2010
VOO Overview
Launched in 2010, VOO is the largest S&P 500 ETF, managing more than $800 billion.
Why VOO Is A Top Choice
VOO matches the leading funds on fees and long-term returns. It’s a natural choice for investors who prefer Vanguard’s investor-owned structure, which aligns the company’s incentives with fund shareholders.
5. Schwab S&P 500 Index Fund (SWPPX)
Schwab S&P 500 by the numbers:
- Expense ratio: 0.03%
- NAV: $17.41
- 10-year average return: 14.6%
- Year launched: 1997
SWPPX Overview
SWPPX is a mutual fund launched in 1997. It fully replicates the S&P 500.
Why SWPPX Is A Top Choice
SWPPX technically has a 0.02% expense ratio, but its 10-year return trails SPYM, IVV and VOO by 1 basis point. Still, its low NAV—thanks to a recent 6-for-1 share split—makes it particularly accessible for investors with smaller budgets.
The lower share price helps investors build diversified portfolios even with contributions under $200 monthly.
6. SPDR S&P 500 ETF Trust (SPY)
SPDR S&P 500 ETF Trust by the numbers:
- Expense ratio: 0.095%
- Market price: $671.85
- 10-year average return: 14.5%
- Year launched: 1993
SPY Overview
SPY, launched in 1993, is the original S&P 500 ETF and remains one of the most heavily traded funds in the U.S.
Why SPY Is A Top Choice
SPY has the highest expense ratio and highest share price on this list. However, its extremely tight bid-ask spreads appeal to short-term traders, who benefit from prices that stay close together. Smaller spreads make it easier to profit from short-term moves.
7. Invesco S&P 500 Equal Weight ETF (RSP)
Invesco S&P 500 Equal Weight ETF by the numbers:
- Expense ratio: 0.2%
- Market price: $187.37
- 10-year average return: 11.0%
- Year launched: 2003
RSP Overview
RSP holds all S&P 500 companies but weights them equally instead of by market capitalization. For example, NVDA represents about 0.21% of RSP versus ~8% in market-cap-weighted funds, giving smaller companies more influence.
Why RSP Is A Top Choice
RSP’s higher expense ratio and lower 10-year return reflect recent outperformance by mega-cap stocks. However, a contrarian investor may prefer equal-weighting in 2026, especially given rising concentration in Nvidia, Apple, Microsoft and other mega-caps. If those stocks cool, they could drag down the entire index — while smaller companies may remain resilient.
Bottom Line
S&P 500 index funds offer straightforward exposure to America’s largest public companies. Since standard S&P 500 funds hold identical portfolios, it often makes sense to choose a fund with a low expense ratio. Or, if you want to reduce exposure to the Magnificent 7, an equal-weight fund like RSP provides a compelling alternative.