Top Low-Cost Index Funds for New Investors

A cornerstone for passive investors seeking broad U.S. equity exposure through one of the largest and most established S&P 500 index funds available. While traditionally requiring higher minimums, it remains a benchmark for low-cost, long-term wealth accumulation.

Offers S&P 500 exposure with zero expense ratio and no minimum investment required to open an account, making it extremely accessible for beginners. Investors benefit from Fidelity’s robust platform and reliable tracking of large-cap U.S. stocks.

Provides low-cost access to the S&P 500 with a minimal expense ratio and no minimum investment for Schwab brokerage accounts. It is ideal for new investors looking for a straightforward, fee-efficient way to gain market exposure.

Tracks the entire U.S. stock market rather than just large caps, offering broader diversification in a single fund. Although the Admiral share class has a higher minimum, it is the gold standard for comprehensive equity exposure with very low fees.

Mirrors the performance of the total U.S. stock market with zero expense ratio and no minimum investment, removing barriers to entry for new investors. It provides instant diversification across thousands of U.S. companies within a single mutual fund structure.

Delivers broad market exposure with a low expense ratio and no account minimums for Schwab clients, simplifying the process for first-time buyers. This fund allows investors to capture growth across small, mid, and large-cap U.S. equities efficiently.

While technically an ETF, it functions similarly to a mutual fund for many investors and requires no minimum investment beyond the price of one share. It offers institutional-quality index tracking with extremely low costs and high liquidity for new entrants.

Provides essential diversification beyond the U.S. by tracking the MSCI All Country World ex USA Index, offering exposure to developed and emerging markets. This fund helps beginners build a global portfolio without the complexity of selecting individual international stocks.

Offers no-minimum access to international equities with a zero expense ratio, making it a compelling choice for diversifying a new portfolio overseas. It tracks the FTSE All-World ex US Index, providing broad coverage of non-U.S. developed and emerging markets.

Features no expense ratio and no minimum investment for Schwab accounts, allowing easy access to global markets outside the U.S. This fund is designed for cost-conscious investors who want to balance their domestic holdings with international growth opportunities.

Serves as a stabilizing component for new portfolios by tracking the broad U.S. investment-grade bond market, offering lower volatility than stocks. The Admiral shares provide low fees and high liquidity, though they typically require a higher initial minimum investment.

Provides exposure to the total U.S. bond market with zero expense ratio and no minimum investment, simplifying fixed-income allocation for beginners. It helps investors manage interest rate risk and generate income while maintaining low costs in their overall portfolio.

Offers broad bond market exposure with no expense ratio and no account minimums, making it accessible for new investors seeking stability. This fund tracks the Bloomberg U.S. Aggregate Bond Index, covering government, corporate, and securitized debt.

Functions as a low-cost alternative to traditional mutual funds for bond investors, with no minimum investment beyond one share price. It provides diversified exposure to the U.S. investment-grade bond market with high liquidity and transparent tracking.

Automatically balances equity and fixed-income exposure in a single fund, offering an ideal all-in-one solution for new investors who prefer a set-and-forget approach. The Admiral class provides low fees and broad diversification across stocks and bonds.

A target-date style fund that focuses on income and capital preservation, adjusting its mix of stocks and bonds as needed for conservative investors. It requires no minimum investment and simplifies asset allocation for those unsure how to balance their portfolios manually.

Tracks the Dow Jones U.S. Broad Stock Market Index, offering comprehensive equity exposure with no expense ratio and no minimum investment for Schwab clients. It serves as a simple, low-cost core holding for building a foundational stock portfolio.

Provides alternative S&P 500 exposure by weighting companies equally rather than by market cap, reducing reliance on the largest tech firms. It offers a different risk-return profile for new investors seeking to diversify beyond traditional capitalization-weighted indices.

One of the oldest and most liquid ETFs, tracking the S&P 500 with no minimum investment required beyond a single share. It is a highly trusted vehicle for new investors wanting direct, low-cost access to the performance of 500 leading U.S. companies.

Focuses on small and mid-cap stocks not included in the S&P 500, offering exposure to higher growth potential for diversified portfolios. While it requires a minimum investment, it complements large-cap holdings to create a complete total market strategy.

Provides targeted exposure to small-cap U.S. stocks through the Russell 2000 Index, offering higher growth potential with increased volatility. It requires no minimum investment beyond one share, allowing new investors to easily add small-cap diversification to their holdings.