Want to invest without spending a fortune on fees? These low cost index funds and ETFs picks are perfect for hands-off, long-term investors.
Looking to grow your wealth without paying high fees?
Low cost index funds are one of the most popular ways to invest in the stock market. They offer a simple, diversified, and affordable approach—especially if you’re just getting started or want to minimize costs.
In 2025, low cost index funds and ETFs remain a favorite among smart investors. Here’s what you need to know.
What Are Low Cost Index Funds?
Low cost index funds are mutual funds or ETFs (exchange-traded funds) designed to track a specific index—like the S&P 500 or the total stock market—at minimal cost.
Instead of hiring expensive fund managers to pick stocks, these funds follow a set group of companies. That means lower management fees, fewer trading costs, and more money staying in your account.
Why Investors Love Them
Low cost index funds and ETFs offer several advantages:
- Low Expense Ratios: Many charge less than 0.05%
- Broad Market Exposure: Own hundreds or thousands of companies in a single fund
- Consistent Performance: Passive funds often beat actively managed ones over time
- Beginner-Friendly: No need to guess which stock to buy
If you’re using prop firm payouts or building a long-term investment portfolio, these funds can be a powerful foundation.
7 Best Low Cost Index Mutual Funds in 2025
| Fund Name | Ticker | Tracks | Expense Ratio |
| Fidelity 500 Index Fund | FXAIX | S&P 500 | 0.02% |
| Fidelity Total Market Index | FSKAX | U.S. Total Market | 0.02% |
| Schwab S&P 500 Index | SWPPX | S&P 500 | 0.02% |
| Schwab Total Stock Market | SWTSX | U.S. Total Market | 0.03% |
| Vanguard 500 Index Admiral | VFIAX | S&P 500 | 0.04% |
| Vanguard Growth Index Admiral | VIGAX | U.S. Growth Stocks | 0.05% |
| iShares S&P 500 Index | WFSPX | S&P 500 | 0.03% |
Expense ratios represent the annual fee as a percentage of your investment.
Best Low Cost Index ETFs for 2025
Prefer ETFs over mutual funds? These ETFs offer ultra-low fees, and you can trade them like stocks:
| ETF Name | Ticker | Tracks | Expense Ratio |
| BNY Mellon US Large Cap | BKLC | U.S. Large Cap | 0.00% |
| SPDR Portfolio S&P 500 | SPLG | S&P 500 | 0.02% |
| JPMorgan BetaBuilders US Equity | BBUS | U.S. Equity | 0.02% |
| iShares Core S&P 500 | IVV | S&P 500 | 0.03% |
| Vanguard Total Stock Market ETF | VTI | Total U.S. Market | 0.03% |
| Vanguard S&P 500 ETF | VOO | S&P 500 | 0.03% |
| SoFi Select 500 | SFY | S&P 500 | 0.05% |
These funds are especially attractive for DIY investors and traders who want low-cost exposure to the market with flexibility.
Index Fund or ETF: What’s the Difference?
| Feature | Index Fund | ETF |
| Traded During Day | No | Yes |
| Minimum Investment | Often Higher | Usually Lower |
| Tax Efficiency | Medium | High |
| Easy to Buy | Yes | Yes |
Bottom line: If you’re investing a lump sum over time, index funds might work better. If you want flexibility and lower minimums, go with ETFs.
How to Pick the Best Low Cost Index Fund
Here are four things to look at:
- Expense Ratio — The lower, the better
- Index It Follows — S&P 500, Total Market, Nasdaq, etc.
- Fund Size — Larger funds tend to be more stable
- Tracking Accuracy — Does it closely match its index?
Don’t just chase returns—look at the long-term structure of the fund.
Final Thoughts on Low Cost Index Funds
Low cost index funds give you instant diversification and low fees—perfect for growing wealth with less stress. In a time when every percentage point matters, these funds offer a smart, cost-effective way to stay invested in the market.
Whether you’re a beginner or a seasoned trader, there’s a good chance one of these low cost index funds belongs in your portfolio.
Written by TheFinancePost Team
TheFinancePost.com is run by a group of financial writers, researchers, and market analysts dedicated to making finance simple and accessible. We break down complex topics—from long-term investing to passive income strategies—with a focus on clarity and reliability.
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