Which is the best S&P 500 index fund?

All S&P 500 index funds strive to match the returns of the S&P 500 index minus fees. Since fees are the difference maker in returns, the Fidelity 500 Index Fund stands out as the best-performing S&P 500 index fund. It has the lowest expense ratio of the top funds, so its returns are slightly higher than those of other top S&P 500 index funds.

What if I had invested $1,000 in the S&P 500 10 years ago?

A $10,000 investment in a fund tracking the S&P 500 index in late March 2016 would have grown to about $36,760 by March 2026.

Which index funds give the best returns?

S&P 500 index funds have some of the most consistently strong returns over long holding periods. Over the last 30 years, the S&P 500 has delivered an average compound annual growth rate of slightly more than 10%, assuming dividend reinvestment. That has outpaced many other investments, like cash, bonds, and gold.

What index is better than the S&P 500?

The answer depends on your investment goals. For example, if you're seeking high growth and are willing to accept more risk, you might want to invest in a fund that tracks the tech-heavy Nasdaq-100 index. If you're seeking income-producing investments, you could buy an index fund that tracks the S&P 500 High Dividend index. The index tracks the performance of 80 companies in the S&P 500 and has a long track record of paying above-average dividends.

Is the S&P 500 ETF a good investment?

There are several S&P 500 ETFs. Like the index funds discussed in this article, they each use the S&P 500 index as their benchmark. Historically, funds that track the S&P 500 index have been good investments in the long term.

How do I invest in the S&P 500 in a retirement account?

If you're investing in a workplace retirement account, like a 401(k) or 403(b), you're limited to the investments your plan offers. You can look for S&P 500 index funds by searching for things like "S&P 500" or "500 index fund." If your plan doesn't have S&P 500 index funds, a large-cap index fund will invest your money in many of the same companies. If you're investing money in an individual retirement account (IRA), you can invest in pretty much any fund you choose. Simply enter the fund's ticker and indicate the number of shares you want to buy.

What's the difference between S&P 500 index funds and S&P 500 ETFs?

Both types of funds invest in the companies in the S&P 500 index. An index fund can either be an ETF (bought and sold like a stock via stock exchanges) or a mutual fund (bought and sold through an investment company like Schwab or Fidelity). Essentially, all S&P 500 ETFs are also S&P 500 index funds, but some S&P 500 index funds are mutual funds, not ETFs. There are slight differences in how you buy and sell each type of fund.

3 Best S&P 500 Index Funds to Buy in 2026

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 Mar 30, 2026 at 4:56 PM EST | Fact-checked by Parker Hicks

Key Points

Fidelity, Schwab, and Vanguard S&P 500 index funds closely track the index with minimal cost differences.
S&P 500 index funds offer broad market exposure and historical resilience, suitable for long-term growth.
Fidelity's S&P 500 index fund has the lowest expense ratio, offering a slight return advantage over others.

S&P 500 (^GSPC +0.77%) 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.

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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 0.09% expense ratio.

Fidelity and Schwab offer their index funds with no minimum investment, making them very accessible to beginning investors. Vanguard has a relatively low minimum investment of $3,000.

Historical performance

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Data sources: Ycharts. Data as of March 30, 2026.
Index or Fund	1-Year Return	3-Year Total Return	5-Year Total Return
S&P 500 Index	15.56%	64.86%	72.51%
Vanguard 500 Index Admiral Shares	15.51%	64.65%	72.14%
Schwab S&P 500 Index Fund	15.52%	64.67%	72.22%
Fidelity 500 Index Fund	15.54%	64.81%	72.40%

Negligible differences exist between the performances of the S&P 500 and each of these three index funds that track it. The S&P 500 outperformed each fund slightly, as would be expected when accounting for each fund's expense ratio but should deliver a virtually identical performance.

At the S&P 500's rate of return, a $10,000 investment made five years ago would have grown to $17,250 by late March 2026. For comparison, a $10,000 investment in the Fidelity 500 index fund would have grown to $17,240 over the same five-year period, with slight variations due to fees and tracking.

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You can put your investment decisions on autopilot

The S&P 500 has a flawless track record of delivering profits over long holding periods, allowing you to invest without worrying as much about stock market fluctuations. You also don't have to research or follow individual companies.

You can simply budget a certain amount and automatically invest it on a regular schedule. This practice is known as dollar-cost averaging. Even if you pick individual stocks, S&P 500 funds are a good foundation for your investment portfolio since you're guaranteed the returns of the stock market.

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S&P 500 index fund fees

S&P 500 index funds are passively managed, which means the goal is to mirror the performance of their benchmark index (the S&P 500 index) as closely as possible instead of beating it. Because human managers aren't choosing the investments, there's less overhead. That translates to lower fees for investors.

Our picks for the best S&P 500 index funds all have expense ratios ranging from 0.015% (fees of $1.50 on a $10,000 investment) to 0.04% (fees of $4 on a $10,000 investment). No matter which fund you choose, you'll spend very little on fees.

One thing to look out for is minimum investments. The Vanguard fund has a $3,000 minimum investment, which could be a barrier for beginning investors. However, both the Schwab and Fidelity funds have no minimum investment.

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S&P 500 index funds FAQ

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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, CFP has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.

Potential for short-term volatility: The S&P 500 has a great track record of delivering long-term profits, but investing in stocks is risky in the short term. Because of the potential for a market downturn, it's best to avoid investing money in stocks if you expect you'll need the money within three to five years.

Be wary of leveraged S&P 500 index funds

Be wary of leveraged funds advertised as S&P 500 ETFs. Leveraged ETFs use borrowed money and/or derivative securities to amplify investment returns or to bet against the index. For example, a 2x-leveraged S&P 500 ETF is intended to return twice the index's daily performance. So, if the index rises by 2%, the ETF's value rises by 4%. But if the index falls by 3%, the ETF loses 6%.

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.

How to choose the right S&P 500 index fund

Here are a few factors to consider when you choose an S&P 500 index fund:

Expense ratio: Look for a fund with a low expense ratio to minimize the amount you spend on fees and maximize the amount of money that actually gets invested.

Minimum investment: Some S&P 500 index funds have a minimum investment that can run as high as $3,000. However, several funds have no minimum investment or allow you to start investing by buying a single share.

Tracking error: A low tracking error means a fund closely replicates the underlying index's returns. Many S&P 500 index funds have a tracking error as low as 0.01% or 0.02%.

3 Best S&P 500 Index Funds to Buy in 2026

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

Key Points

Historical performance

You can put your investment decisions on autopilot

S&P 500 index fund fees

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S&P 500 index funds FAQ

Which is the best S&P 500 index fund?

What if I had invested $1,000 in the S&P 500 10 years ago?

Which index funds give the best returns?

What index is better than the S&P 500?

Is the S&P 500 ETF a good investment?

How do I invest in the S&P 500 in a retirement account?

What's the difference between S&P 500 index funds and S&P 500 ETFs?

Historical performance

Why are S&P 500 index funds popular?

You can put your investment decisions on autopilot

Advantages and disadvantages of investing in the S&P 500

Be wary of leveraged S&P 500 index funds

How to choose the right S&P 500 index fund

How to invest in S&P 500 index funds

S&P 500 index fund fees

Related investing topics

FAQ

Top S&P 500 index funds to consider

Your money will track the market's performance

You will keep more of your investment profits in your pocket

You'll be investing in 500 of the most profitable companies in the U.S.