The Best Index Funds | Morningstar

Index funds are

. They track an index with the aim of replicating that index’s performance minus passive investing expenses. Active funds, meanwhile, are led by managers who choose particular securities to outperform an index.

However, some index funds are better than others. The best index funds closely track their indexes, minimize costs, and follow sensible rules-based indexes.

Why Are Index Funds Such a Popular Investing Option?

The first index fund, Vanguard 500 Index, debuted in 1976. Since then, funds that index the US stock market have exploded in popularity. And index funds that focus on international stocks and bonds are becoming more popular, too.

Why? Many argue that buying and holding the broad market (whatever that market may be) generates better results than trying to beat that same market through actively selecting securities. Indeed, Morningstar research has confirmed that, in many investment categories, index funds have outperformed active funds over time.

Best Index Funds to Buy

A good place to start your search for top index exchange-traded funds and mutual funds is with the

. Funds that earn our highest rating of Gold are those that we think are most likely to outperform over a full market cycle.

Here’s a list of the best low-cost index mutual funds and ETFs. This list is broken down by the three main asset classes represented in many investors’ portfolios: US stocks, international stocks, and bonds.

Best Index Funds: US Stocks

These mutual funds and ETFs all landed in one of the broad US stock Morningstar Categories, earned the top Medalist Rating of Gold, and had an Analyst Assigned % equaling at least 80% as of April 10, 2026.

1. DFA US Large Company DFUSX
2. Fidelity 500 Index FXAIX
3. Fidelity Mid Cap Index FSMDX
4. Fidelity Total Market Index FSKAX
5. iShares Core S&P 500 ETF/Index IVV BSPGX
6. iShares Core S&P Mid-Cap ETF IJH
7. iShares Core S&P Total U.S. Stock Market ETF ITOT
8. Nuveen Equity Index TEQWX
9. Schwab US Mid-Cap Index SWMCX
10. Schwab Total Stock Market Index SWTSX
11. Schwab U.S. Broad Market ETF SCHB
12. Schwab U.S. Dividend Equity ETF SCHD
13. Schwab U.S. Large-Cap ETF SCHX
14. Schwab S&P 500 Index SWPPX
15. State Street Equity 500/ETF SSEYX SPYM
16. State Street SPDR Portfolio S&P 400 Mid Cap ETF SPMD
17. State Street SPDR Portfolio S&P 600 Small Cap ETF SPSM
18. State Street SPDR Russell 1000 Yield Focus ETF ONEY
19. State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF SPTM
20. T. Rowe Price Equity Index 500 TRHZX
21. Vanguard S&P 500 ETF/Vanguard 500 Index VOO VFFSX
22. Vanguard Dividend Appreciation ETF/Index VIG VDADX
23. Vanguard Growth ETF/Index VUG VIGIX
24. Vanguard High Dividend Yield ETF/Index VYM VHYAX
25. Vanguard Total Stock Market ETF/Index VTI VITPX
26. Vanguard Large-Cap ETF/Index VV VLISX
27. Vanguard Mid-Cap ETF/Index VO VMCPX
28. Vanguard Mid-Cap Value ETF/Index VOE VMVAX
29. Vanguard Russell 1000 Growth ETF/Index VONG VRGWX
30. Vanguard Russell 1000 Index VRNIX
31. Vanguard Russell 1000 Value Index/ETF VONV VRVIX
32. Vanguard Russell 3000 Index VRTTX
33. Vanguard S&P 500 Growth ETF/Index VOOG VSPGX
34. Vanguard S&P 500 Value ETF/Index VOOV VSPVX
35. Vanguard S&P Mid-Cap 400 ETF/Index IVOO VSPMX
36. Vanguard S&P Mid-Cap 400 Growth VMFGX
37. Vanguard S&P Mid-Cap 400 Value Index VMFVX
38. Vanguard S&P Small-Cap 600 Index I VSMSX
39. Vanguard S&P Small-Cap 600 Value Index VSMVX
40. Vanguard Small Cap Growth Index/ETF VSGIX VBK
41. Vanguard Small-Cap ETF/Index VB VSCPX
42. Vanguard Small-Cap Value ETF/Index VBR VSIIX
43. Vanguard Tax-Managed Small Cap I VTSIX
44. Vanguard Value Index/ETF VIVIX VTV

Although this is a list of the best broad-based low-cost index funds investing in US stocks, there is some variety here. Several funds in the group track the S&P 500 and therefore provide access to large-cap stocks representing about 80% of the US stock market. Other index funds on the list follow much broader market indexes that include more stocks, some of which are smaller-cap names. Meanwhile, other funds on the list are more narrowly focused, tracking indexes based on market capitalization (mid- or small-cap stocks) or investment style (growth stocks or value stocks).

To fully understand a fund’s strategy, be sure to read its Morningstar Fund Analyst Report.

Best International-Stock Index Funds

These mutual funds and ETFs all landed in one of Morningstar’s international-stock categories, earned the top Morningstar Medalist Rating of Gold, and had an analyst-assigned % equaling at least 80% as of April 10, 2026.

1. Fidelity Total International Index FTIHX
2. Franklin FTSE Japan ETF FLJP
3. Franklin FTSE Hedged Japan ETF FLJH
4. IShares Core MSCI Total International Stock ETF IXUS
5. IShares MSCI EAFE Value ETF EFV
6. State Street Global All Cap Equity ex-U.S. Index SSGJX
7. Vanguard FTSE All-World ex-US ETF/Index VEU VFWPX
8. Vanguard FTSE All-World ex US Small-Cap ETF/Index VSS VFSNX
9. Vanguard International Dividend Appreciation ETF/Index VIGI VIAAX
10. Vanguard Total International Stock ETF/Index VXUS VTISX
11. Vanguard Total World Stock ETF VT VTWIX

Here, too, we have another list of the best broad-based low-cost index funds—in this case, focused on international stocks—where there is some variety. Some funds here track global indexes that include US stocks; others follow global indexes that exclude US stocks. A couple of funds invest in specific regions or countries only and are therefore better suited to the fringes of a portfolio. Consult the investment’s Analyst Report for more details.

Best Bond Index Funds

These mutual funds and ETFs all landed in one of Morningstar’s bond categories, earned the top Morningstar Medalist Rating of Gold, and had an Analyst Assigned % equaling at least 80% as of April 10, 2026.

1. Fidelity U.S. Bond Index FXNAX
2. IShares Core U.S. Aggregate Bond ETF AGG
3. Nuveen Bond Index TBIWX
4. Schwab Short-Term U.S. Treasury ETF SCHO
5. Schwab U.S. Aggregate Bond ETF SCHZ
6. Schwab U.S. TIPS ETF SCHP
7. State Street SPDR Portfolio Aggregate Bond ETF/Index SPAB SSAFX
8. State Street SPDR Portfolio Short Term Treasury ETF SPTS
9. Vanguard FTSE Europe ETF/Index VGK VEUPX
10. Vanguard Intermediate-Term Corporate Bond ETF/Index VCIT VICBX
11. Vanguard Short-Term Corporate Bond ETF/Index VCSH VSTBX
12. Vanguard Short-Term Inflation-Protected Securities ETF VTIP VTAPX
13. Vanguard Short-Term Treasury ETF/Index VGSH VSBIX
14. Vanguard Tax-Exempt Bond ETF VTEB
15. Vanguard Total Bond Market ETF/Index BND VTBSX
16. Vanguard Total Bond Market Index VTBSX

Several of the best broad-based index funds on this list land in one of the intermediate-term bond categories. As such, they’d make great choices to anchor the bond portion of an investor’s portfolio, assuming the goals for the money are six or more years away. Those saving for a shorter-term goal in the next three to five years might consider short-term bond funds instead. Investors with longer time horizons might consider a longer-term bond fund—but they should also be prepared for the enhanced volatility that comes with investing in long-term bonds. And retirees often hold a fund that’s meant to blunt the impact of inflation on their portfolios; there are options for that on this list, too.

The Benefits of Investing in Low-Cost Index Funds

Any historical performance advantage aside, there are several benefits to investing in index funds.

• Index funds are usually lower in cost than similar actively managed funds.
• Index funds perform like the market they’re tracking; as such, there aren’t many surprises in performance.
• Index funds don’t face “key-person risk,” which means that manager changes aren’t a big deal, since there’s no active security selection involved.
• Index funds are often more tax-friendly than similar active funds.

Should You Invest in an Index Mutual Fund or ETF?

Investors can access passive strategies through two different investment products:

and ETFs.

One product isn’t better than the other; choosing the right wrapper depends on personal preferences. Investors who value trading flexibility or may have a few dollars to invest might prefer an ETF, while those accessing index funds via a company-sponsored retirement plan are more than likely buying mutual funds.

Read Cage Match: Traditional Index Funds vs. ETFs to learn more about the differences between mutual funds and ETFs.

How to Find the Best Index Funds?

Focusing on funds that earn a Gold rating may be too limiting for some investors. Those who’d like to consider funds beyond our top rating can review a full list of US stock index funds and ETFs and bond index funds and ETFs that earn ratings of Bronze, Silver, and Gold.

Investors can also review complete lists of all index mutual funds or all index ETFs. These lists include funds that don’t currently earn Medalist Ratings.