What Is The Best Index Fund To Invest In 2018?
3 min read
Contents
Introduction
Investing in index funds has become increasingly popular among investors in recent years. These funds provide diversification, low fees, and the opportunity to track the performance of a specific market index. With 2018 well underway, many investors are wondering which index fund will provide the best returns. In this article, we will explore some of the top index funds to consider for 2018.
The Vanguard Total Stock Market Index Fund
One of the most popular index funds among investors is the Vanguard Total Stock Market Index Fund. This fund aims to track the performance of the CRSP US Total Market Index, which represents nearly 100% of the investable U.S. stock market. With a low expense ratio and a wide range of holdings, this fund can be a solid choice for investors looking for broad market exposure.
Another top contender for the best index fund in 2018 is the iShares Core S&P 500 ETF. This fund seeks to replicate the performance of the S&P 500 Index, which includes 500 of the largest U.S. companies. With a low expense ratio and a strong track record, this fund can be an attractive option for investors looking for exposure to large-cap stocks.
The Schwab U.S. Dividend Equity ETF
For investors looking for income, the Schwab U.S. Dividend Equity ETF can be a great choice. This fund aims to track the performance of the Dow Jones U.S. Dividend 100 Index, which includes 100 high dividend yielding U.S. stocks. With a focus on dividend-paying companies, this fund can provide investors with a steady stream of income while also offering potential for capital appreciation.
If you are looking for exposure to small-cap stocks, the iShares Russell 2000 ETF can be an excellent option. This fund seeks to track the performance of the Russell 2000 Index, which includes 2000 small-cap U.S. companies. With a low expense ratio and a focus on smaller companies, this fund can provide investors with the potential for higher returns.
The Fidelity NASDAQ Composite Index Fund
For investors looking for exposure to the technology sector, the Fidelity NASDAQ Composite Index Fund can be a top choice. This fund aims to track the performance of the NASDAQ Composite Index, which includes over 3,000 U.S. and international stocks. With a focus on technology and growth companies, this fund can provide investors with the potential for high returns.
Conclusion
While there are many index funds to choose from, the best one for you will depend on your investment goals, risk tolerance, and time horizon. It is important to carefully evaluate each fund’s performance, fees, and underlying holdings before making a decision. By doing thorough research and consulting with a financial advisor, you can find the best index fund to invest in for 2018 and potentially reap the benefits of a well-diversified portfolio.
Disclaimer
This article is for informational purposes only and should not be considered as financial advice. Investing in index funds involves risk, including the possible loss of principal. Investors should consult with a financial advisor before making any investment decisions.