What are the top index funds in the U.S. for your savings, and are they a good option in 2024?
If you are looking to grow your hard-earned savings, investing in index funds could be an option for you. Here are some of the best funds for the year.
You’ve managed to save up a little bit of money despite the high cost of living, and now you’re thinking about investing it so that you don’t lose its value to inflation. If you’ve decided to finally take your money out of your savings account, you may want to consider investing in index funds.
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What are index funds?
An index fund is a type of investment fund that involves a basket of stocks designed to replicate the performance of a specific market index without the investor having to actively manage them.
These funds aim to provide investors with a diversified, low-cost investment option that matches the returns of the index they track.
The main goal of index funds is to match the performance of a specific index, not to outperform it. This is achieved by holding all (or a representative sample) of the securities in the index.
Because index funds are passively managed, they generally have lower management fees compared to actively managed funds, which require more hands-on investment strategies and research.
Index funds are popular among those who are looking for a cost-effective, diversified, and low-maintenance way to invest in the stock or bond market.
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Are index funds a good option in 2024?
You can begin investing in index funds at any time if you intend to hold the money for the long term and are not looking for short-term returns. Just like any investment, index funds carry with them some risk, as they are subject to the same market forces as the index they mirror.
It is always best to educate yourself before investing your hard-earned money, so you can read up on the specific fund you want to invest in to find out its composition, strategy, fees, and risks that come with it. You can also hire a financial advisor who can help guide you in your decisions.
What are the top index funds in the U.S. for your savings?
Here are some index funds you could consider, as listed by different financial websites.
NerdWallet
According to personal finance company NerdWallet, the eight best index funds of the month are divided into two: five that track the S&P 500 and three that track the Nasdaq-100 Index.
| Index fund | Pegged to: |
|---|---|
| Vanguard 500 Index Fund - Admiral Shares (VFIAX) | S&P 500 |
| Schwab S&P 500 Index Fund (SWPPX) | S&P 500 |
| Fidelity 500 Index Fund (FXAIX) | S&P 500 |
| Fidelity Zero Large Cap Index (FNILX) | S&P 500 |
| T. Rowe Price Equity Index 500 Fund (PREIX) | S&P 500 |
| Invesco NASDAQ 100 ETF (QQQM) | Nasdaq-100 |
| Invesco QQQ (QQQ) | Nasdaq-100 |
| Fidelity NASDAQ Composite Index Fund (FNCMX) | Nasdaq-100 |
Bankrate
Bankrate’s picks include five index funds tracking the S&P 500 and two following the Nasdaq-100 Index
| Index fund | Pegged to: |
|---|---|
| Fidelity ZERO Large Cap Index (FNILX) | S&P 500 |
| Vanguard S&P 500 ETF (VOO) | S&P 500 |
| SPDR S&P 500 ETF Trust (SPY) | S&P 500 |
| iShares Core S&P 500 ETF (IVV) | S&P 500 |
| Schwab S&P 500 Index Fund (SWPPX) | S&P 500 |
| Shelton NASDAQ-100 Index Direct (NASDX) | Nasdaq-100 |
| Invesco QQQ Trust ETF (QQQ) | Nasdaq-100 |
TIME Finance
Here are the picks of TIME Finance if you want to invest in a steady, low cost index fund.
| Top 10 index funds to invest in 2024 (TIME Finance) |
|---|
| 1. Shelton Nasdaq-100 Index Investor (NASDX) |
| 2. Victory Nasdaq-100 Index Fund (USNQX) |
| 3. VALIC Company Nasdaq-100 Index Fund (VCNIX) |
| 4. Voya Russell Large Cap Growth Index Portfolio (IRLSX) |
| 5. Fidelity Series Large Cap Growth Index Fund (FHOFX) |
| 6. Fidelity Large Cap Growth Index Fund (FSPGX) |
| 7. Schwab U.S. Large-Cap Growth Index Fund (SWLGX) |
| 8. Fidelity U.S. Sustainability Index Fund (FITLX) |
| 9. Fidelity 500 Index Fund (FXAIX) |
| 10. Schwab S&P 500 Index Fund (SWPPX) |