7 Best S&P 500 Index Funds In 2026

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S&P 500 index funds allow you to invest in the Standard & Poor’s 500 Index, a collection of stocks that includes the largest and most successful companies in the U.S. The S&P 500 index has returned an average of about 10% annually over time.

Here are seven of the best S&P 500 index funds, including mutual funds and exchange-traded funds (ETFs).

Top S&P 500 index funds in 2026

Each of these funds tracks the S&P 500 index, so it’s little surprise that they have basically the same annual return over the same five-year period. The slight difference is due mainly to fees.

(Keep in mind that technically the Fidelity ZERO fund cited above doesn’t track the S&P 500, but the large-cap index it does track is very similar.)

Which S&P 500 index fund should you buy?

Since these funds all track the same index, which S&P 500 fund you should buy comes down to the expense ratio, the minimum investment, the fund’s availability and any trading fees.

Expense ratio: Any way you see it, these funds are cheap, even if some are cheaper than others. For example, the Vanguard S&P 500 ETF charges expenses of 0.03% annually. That amounts to $3 for every $10,000 invested in the fund. None of the other funds is much more expensive. In fact, S&P 500 index funds are some of the market’s cheapest — well below the average fund’s cost.

If you opt for the Fidelity ZERO fund — which charges no expense ratio — you should know that it’s able to do so by avoiding the S&P brand and the associated fees. While the fund effectively tracks this key index, Fidelity can’t say that it’s an S&P 500 fund.

Minimum investment: These funds also compete well on the minimum investment requirement, which can be a key factor for mutual funds. Three of the four mutual funds here have no minimum, while the Vanguard 500 fund has a standard $3,000 minimum. ETFs don’t have a minimum investment requirement, but you may have to buy at least one full share, and ETF prices vary markedly. Still, if you work with one of the best brokers for fractional shares, you can buy in for just a few dollars.

Availability: Not all mutual funds are available at all brokers. For example, the no-cost Fidelity ZERO fund may not appear as an option at most brokers, so if you want that fund specifically, then you may have to open a Fidelity brokerage account.

Trading fees: Most brokers these days offer free trades for ETFs, and many brokers also offer thousands of “no-transaction-fee” mutual funds. However, if you’ve got your heart set on a specific company’s mutual fund but your brokerage account is at a different broker — say, you really like that Vanguard fund but your account is at Fidelity — be aware that you may well face a transaction fee each time you buy or sell that mutual fund.

Should you invest in an S&P 500 index fund?

The key draws of an S&P 500 index fund are that investors can earn strong returns over time, even without knowing much about investing. The S&P 500 contains 500 stocks of top U.S. companies, and each share of an index fund gets investors indirect ownership of all the companies — all at one low annual fee (the expense ratio).

These index funds offer immediate diversification, reducing the risk of investing in individual stocks. While investing is never risk-free, the S&P has a strong record over long stretches.

Still, in the short term the market can be volatile. That’s why it’s crucial to have a long-term outlook when investing in stocks. If you’ll need the money in less than three to five years, then that’s money that should probably be in a short-term investment. If you have a longer-term outlook, then stocks (or stock mutual funds and ETFs) can be a smart investment: You can ride out any volatility and wait out any downturns, and then sell high.

Bottom line

S&P 500 index funds are some of the best investments for investors of all skill levels, but they can be especially beneficial for newer investors, who can enjoy solid returns without needing extensive expertise. Investors have a variety of cheap options to attain healthy returns.

Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation.