Top 7 Investment Index Funds for 2024

Leading 7 Index Funds to Consider This Year

An index fund is a type of investment vehicle, including ETFs and mutual funds, designed to mirror a specific market index. These funds are created by investment firms, brokerages, or banks, aiming to replicate the performance of the chosen index without active management. As indices fluctuate with the addition or removal of stocks, fund managers update these funds accordingly. Here’s a curated list of the best index funds to diversify your portfolio in 2024.

Fidelity 500 Index Fund (FXAIX)
This popular fund tracks the S&P 500 and invests in large-cap US companies, offering broad market exposure.

Washington Mutual Investors Fund (WSHFX)
Established in 1952, this fund has historically outperformed the S&P 500 during market downturns of 15% or more. It aims for long-term capital growth and income, primarily investing in reputable companies with steady dividends, excluding sectors like tobacco and alcohol. Around 55% of assets are in financial, healthcare, and tech sectors, with approximately 93.6% held in U.S. firms.

T. Rowe Price Value Fund
Focusing on undervalued stocks, this fund invests at least 65% of assets in such equities, making it suitable for inflationary times. Its approach offers resilience in overpriced markets and potential gains during recessions. The fund charges an expense ratio of 0.65% and a management fee of 0.55%.

Fidelity Zero Large Cap Index (FNILX)
This no-cost fund tracks the Fidelity US Large Cap Index, avoiding licensing fees related to the S&P 500. Its zero expense ratio allows investors to keep more of their gains, making it an attractive low-cost option for broad large-cap exposure.

Thrivent Mid Cap Stock Fund
An actively managed fund targeting mid-cap stocks, holding around fifty-eight companies. Ideal for investors willing to accept higher volatility for potential long-term growth, it has outperformed benchmarks like the S&P MidCap 400 and Russell Midcap in recent years. Key sectors include consumer discretionary, financials, and industrials, with tech comprising about 10.7%.

Schwab S&P 500 Index Fund
For those seeking pure S&P 500 exposure, this fund offers an ultra-low expense ratio of just 0.02%. It mirrors the index's performance closely, with minimal fees, allowing for accessible investing starting from as low as $1. In 2021, it achieved a return of 31.43%, similar to the index's overall performance.

Invesco QQQ Trust ETF
Since its launch in 1999, QQQ has gained immense popularity by tracking the Nasdaq-100, comprising top non-financial tech and growth companies. Managed by Invesco, it has shown high returns over the past fifteen years, with a low expense ratio of 0.2%. It is ideal for investors targeting large-cap tech and innovative sectors.

Investing in index funds involves market risks, including the potential loss of your entire investment if economic conditions deteriorate. Analyze market trends carefully, assess your risk tolerance, and choose funds suited to your financial goals.