Top 3 S&P 500 Index Funds to Buy in 2025

Find out which index funds tracking the S&P 500 have the lowest fees and most closely track the market.

By Robin Hartill, CFP – Updated Sep 5, 2025 at 7:52 PM | Fact-checked by Frank Bass

Key Points

Fidelity's S&P 500 index fund has the lowest fee at 0.015%, enhancing long-term returns.
S&P 500 index funds replicate market performance, simplifying investment choices.
Avoid leveraged S&P 500 ETFs for long-term investing due to high risk.

S&P 500 (SNPINDEX:^GSPC) index funds are passive investments that allow investors to match the performance of the S&P 500, an index featuring the 500 largest publicly traded companies in the U.S. They're ideal for investors who want to earn returns in line with the broader market but don't want to own individual stocks. Read on to learn more about these popular funds.

Loading paragraph...

Stock market graph. — Image source: Getty Images.

Loading paragraph...

All three are very low-cost ways to invest in the 500 companies comprising the S&P 500 index. Fidelity has the lowest costs, with a 0.015% expense ratio. Schwab's is only slightly higher at 0.02%, while the Vanguard 500 Index Fund Admiral Shares has a 0.04% expense ratio.

Loading paragraph...

Expense Ratio

A percentage of mutual fund or ETF assets deducted annually to cover management, operational, and administrative costs.

Loading paragraph...

Data sources: Schwab, Fidelity, and Vanguard. Data as of Aug. 15, 2025.
Index or Fund	1-Year Total Return	3-Year Total Return	5-Year Total Return
S&P 500 Index	17.65%	56.72%	106.1%
Vanguard 500 Index Admiral Shares	17.60%	56.52%	105.7%
Schwab S&P 500 Index Fund	17.62%	56.56%	105.8%
Fidelity 500 Index Fund	17.63%	56.67%	106.0%

Loading paragraph...

Bonds

Bonds are debt securities that entitle the holder to receive interest payments.

Loading paragraph...

Related investing topics

Loading paragraph...

Index Funds vs. Mutual Funds: What Are the Differences?

Index funds and mutual funds both pool investors' money to buy many different securities. Learn how these investments work.

Dividend Kings of 2025

These companies have increased their dividends every year for more than 50 years.

Understanding Treasury Bonds and Other Investments

Issued by the U.S. government to raise money, T-bonds should have a place in your portfolio.

5 Things to Know About Asset Allocation

Smart investors adjust their asset mix as they grow older.

These leveraged products are intended to be day-trading instruments and have an inherent downside bias over the long term. In other words, a 2x-leveraged S&P 500 ETF will not return twice the index's performance over the long term.

Investing in S&P 500 index funds is one of the safest ways to build wealth over time. But leveraged ETFs -- even those tracking the S&P 500 -- are highly risky and don't belong in a long-term portfolio.

Loading paragraph...

Loading faq...

About the Author

Robin Hartill, CFP, is a contributing writer at The Motley Fool. Robin’s work has also been published by Yahoo Finance, USA Today, and Penny Hoarder. She is a graduate of the University of Florida.

TMFRobinHartill

Robin Hartill has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Vanguard S&P 500 ETF. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.