The 10 Best Low-Cost Index Funds

Check out the top low-cost index funds to see whether any are a fit for your portfolio.

By Matthew Frankel, CFP – Updated Oct 6, 2025 at 2:17 PM | Fact-checked by Frank Bass

Key Points

Low-cost index funds minimize investing costs, boosting long-term returns.
Index funds come in various forms, including ETFs with low initial investments.
Understanding index fund categories helps select the best fit for investment goals.

Low-cost index funds are ETFs or mutual funds that pool investors' money to track a benchmark index. There's no specific fee level that makes an index fund "low-cost," but an expense ratio that is far below the industry average is a characteristic.

Investors who focus on minimizing their investing costs can generate vastly superior returns over time.

Loading paragraph...

The letters ETF against a yellow background. — Image source: Getty Images.

Loading image...

Many investors prefer index funds in ETF, or exchange-traded fund (ETF) form, over mutual funds. They're easier to trade, have lower initial investment requirements, and often have lower expense ratios.

Loading paragraph...

Exchange-Traded Fund (ETF)

An exchange-traded fund, or ETF, allows investors to buy many stocks or bonds at once.

Loading definition...

In this article, we'll discuss how to choose low-cost index funds that are right for you. We'll also give 10 examples of our favorite low-cost index funds to help get your search started.

Loading paragraph...

Data sources: Fund providers and ETFdb.com. Numbers are rounded to the nearest billion, where applicable. *Includes both ETF and mutual fund classes. Data current as of Aug. 10, 2025..
Index Fund	Expense Ratio	Assets Under Management
Vanguard S&P 500 ETF (NYSEMKT:VOO)	0.03%	$1.5 trillion
Vanguard Large-Cap ETF (NYSEMKT:VV)	0.04%	$61 billion
Schwab U.S. Large-Cap ETF (NYSEMKT:SCHX)	0.03%	$58 billion
Vanguard Mid-Cap ETF (NYSEMKT:VO)	0.04%	$193 billion
Schwab U.S. Mid-Cap ETF (NYSEMKT:SCHM)	0.04%	$12 billion
Vanguard Small-Cap ETF (NYSEMKT:VB)	0.05%	$153 billion
iShares Core S&P Small-Cap ETF (NYSEMKT:IJR)	0.06%	$80 billion
Schwab U.S. Broad Market (NYSEMKT:SCHB)	0.03%	$36 billion
iShares Core S&P Total US Stock Market (NYSEMKT:ITOT)	0.03%	$74 billion
Vanguard Total Stock Market ETF (NYSEMKT:VTI)	0.03%	$1.9 trillion*

Loading table...

Loading paragraph...

NYSEMKT: VOO

Vanguard S&P 500 ETF

Today's Change

(-1.13%) $-7.04

Current Price

$617.17

Key Data Points

Market Cap

$0B

Day's Range

$617.16 - $625.63

52wk Range

$442.80 - $634.13

Volume

447K

Avg Vol

Gross Margin

0.00%

Dividend Yield

N/A

Loading company_card...

Loading paragraph...

Loading pitch...

2. Vanguard S&P 500 ETF

Loading paragraph...

NYSEMKT: VV

Vanguard Index Funds - Vanguard Large-Cap ETF

Today's Change

(-1.16%) $-3.62

Current Price

$309.72

Key Data Points

Market Cap

$0B

Day's Range

$309.71 - $313.98

52wk Range

$221.41 - $318.84

Volume

274K

Avg Vol

Gross Margin

0.00%

Dividend Yield

N/A

Loading company_card...

The Vanguard S&P 500 ETF tracks the S&P 500. The benchmark index is weighted by market capitalization and includes 500 of the largest U.S. companies. The broad diversification of this fund is appealing to many investors.

The S&P 500 is "self-cleansing," meaning that when a particular company no longer qualifies for inclusion in the index, it is replaced by a growing company that deserves to be included. The formulaic nature of the inclusion process ensures that only high-quality companies are listed by the S&P and invested in by S&P 500 index funds, like the Vanguard S&P 500 ETF.

Loading paragraph...

3. Vanguard Mid-Cap ETF

Loading paragraph...

NYSEMKT: SCHX

Schwab Strategic Trust - Schwab U.s. Large-Cap ETF

Today's Change

(-1.12%) $-0.30

Current Price

$26.43

Key Data Points

Market Cap

$0B

Day's Range

$26.41 - $26.79

52wk Range

$19.00 - $27.27

Volume

32M

Avg Vol

Gross Margin

0.00%

Dividend Yield

N/A

Loading company_card...

Loading paragraph...

Revenue

Revenue is a business’s gross income or the amount of money it brings in from regular operations before costs are considered.

Loading definition...

4. Vanguard Small-Cap ETF

Loading paragraph...

NYSEMKT: VO

Vanguard Index Funds - Vanguard Mid-Cap ETF

Today's Change

(-0.52%) $-1.51

Current Price

$290.90

Key Data Points

Market Cap

$0B

Day's Range

$290.59 - $294.11

52wk Range

$223.65 - $298.64

Volume

773K

Avg Vol

Gross Margin

0.00%

Dividend Yield

N/A

Loading company_card...

The Vanguard Small-Cap ETF is an attractive option if you want to invest in companies with the most growth potential. The fund tracks the CRSP U.S. Small-Cap index, focusing on U.S. companies in the bottom 2% to 15% by market cap. The median market cap of the roughly 1,340 stocks in the ETF is $8.5 billion.

Investing in a low-cost, small-cap index fund ETF such as the Vanguard Small-Cap ETF can boost your overall returns. However, due to its small-cap focus, this ETF's performance can be more volatile than other investments.

Loading paragraph...

NYSEMKT: VV

Vanguard Index Funds - Vanguard Large-Cap ETF

Today's Change

(-1.16%) $-3.62

Current Price

$309.72

Key Data Points

Market Cap

$0B

Day's Range

$309.71 - $313.98

52wk Range

$221.41 - $318.84

Volume

274K

Avg Vol

Gross Margin

0.00%

Dividend Yield

N/A

Loading company_card...

As the name suggests, the Vanguard Large-Cap ETF tracks an index of large-cap stocks, specifically the CRSP US Large Cap Index. This index has 466 different stocks in it, and as you might expect, in practice it is very close to the S&P 500. In fact, the fund's top holdings are the same as those of the Vanguard S&P 500 ETF, and in nearly identical weightings.

6. Schwab U.S. Large-Cap ETF

Loading paragraph...

NYSEMKT: SCHX

Schwab Strategic Trust - Schwab U.s. Large-Cap ETF

Today's Change

(-1.12%) $-0.30

Current Price

$26.43

Key Data Points

Market Cap

$0B

Day's Range

$26.41 - $26.79

52wk Range

$19.00 - $27.27

Volume

32M

Avg Vol

Gross Margin

0.00%

Dividend Yield

N/A

Loading company_card...

Unlike the Vanguard Large-Cap ETF, the Schwab U.S. Large-Cap ETF is a little broader than the S&P 500, focusing on the 750 largest U.S. companies by market cap. In short, it has the same top holdings as the other large-cap ETFs on this list, but because the fund has 250 additional stocks, the weights are slightly lower because capital is spread out more.

7. Schwab U.S. Mid-Cap ETF

Loading paragraph...

NYSEMKT: SCHM

Schwab Strategic Trust - Schwab U.s. Mid-Cap ETF

Today's Change

(-0.43%) $-0.13

Current Price

$30.02

Key Data Points

Market Cap

$0B

Day's Range

$29.98 - $30.45

52wk Range

$22.41 - $30.91

Volume

932K

Avg Vol

Gross Margin

0.00%

Dividend Yield

N/A

Loading company_card...

The Schwab U.S. Mid-Cap ETF is an index fund that tracks the Dow Jones U.S. Mid-Cap Total Stock Market Index. It owns a total of 495 stocks, and all but one of its holdings make up less than 1% of the fund. Top positions include Robinhood (HOOD -3.11%), United Airlines (NYSE:UAL), and Interactive Brokers (IBKR -0.97%), just to give you an idea about the size of the companies that are included in the index.

8. iShares Core S&P Small-Cap ETF

Loading paragraph...

NYSEMKT: IJR

iShares Trust - iShares Core S&P Small-Cap ETF

Today's Change

(-0.29%) $-0.36

Current Price

$121.88

Key Data Points

Market Cap

$0B

Day's Range

$121.66 - $123.64

52wk Range

$89.22 - $125.84

Volume

5.8M

Avg Vol

Gross Margin

0.00%

Dividend Yield

N/A

Loading company_card...

Loading paragraph...

NYSEMKT: SCHB

Schwab Strategic Trust - Schwab U.s. Broad Market ETF

Today's Change

(-1.11%) $-0.29

Current Price

$25.80

Key Data Points

Market Cap

$0B

Day's Range

$25.79 - $26.15

52wk Range

$18.52 - $26.57

Volume

14M

Avg Vol

Gross Margin

0.00%

Dividend Yield

N/A

Loading company_card...

The Schwab U.S. Broad Market ETF is somewhat in between an S&P 500 index fund and a total market index fund. It tracks an index that includes the 2,500 largest publicly traded U.S. companies. However, it is a weighted fund, and therefore it has the same top holdings as the S&P 500, just with slightly lower weights.

10. iShares Core S&P Total US Stock Market

Loading paragraph...

NYSEMKT: ITOT

iShares Trust - iShares Core S&P Total U.s. Stock Market ETF

Today's Change

(-1.08%) $-1.59

Current Price

$146.23

Key Data Points

Market Cap

$0B

Day's Range

$146.19 - $148.22

52wk Range

$105.00 - $150.84

Volume

3.7M

Avg Vol

Gross Margin

0.00%

Dividend Yield

N/A

Loading company_card...

The iShares Core S&P Total US Stock Market ETF is very similar to the Schwab Broad Market fund discussed earlier. It tracks the S&P Total Market Index, which contains about 2,500 companies ranging from mega-caps to small-caps. As you might expect, top holdings include companies like Nvidia (NVDA -3.78%), Microsoft (MSFT +0.02%), and Apple (AAPL -1.01%), and because there are more stocks, the weights of each are slightly lower than those of an S&P 500 index fund.

Loading paragraph...

The beauty of an index-based investing style is that you only need to buy and hold -- and be unwaveringly patient. Paying very little for such a strategy is not only possible but also the best way to ensure that you keep the majority of your investment returns over the long haul.

Loading paragraph...