Want to grow your money but hate spending hours researching stocks? Most people feel overwhelmed by complex investment choices and market jargon.
The fear of making wrong moves keeps them from starting, watching opportunities slip away.
The good news is that building wealth doesn’t need to be hard. These seven proven index funds do the heavy lifting for you.
From broad market exposure to steady dividend payers, each fund works around the clock to help your money grow.
Think of them as your wealth-building team – no stock-picking headaches required. Ready to put your money to work?
1. Vanguard Total Stock Market ETF (VTI)
Getting access to the entire U.S. stock market through a single fund makes VTI stand out. The fund tracks over 3,700 companies, ranging from massive tech giants to smaller growing businesses.
With a minimal expense ratio of 0.03%, investors keep more of their returns. Looking at past results, VTI has delivered impressive gains, showing a compound annual return of 10.84% across three decades as of January 2025.
Many investors appreciate this fund’s straightforward approach to capturing market gains. Large companies like Apple and Microsoft naturally have more influence on the fund’s performance due to their size.
The fund stays current with market changes, automatically adjusting holdings as companies grow or shrink.
One big advantage is the built-in diversification across all market sectors. Technology, healthcare, finance, and consumer goods all play their part in the fund’s makeup.
This broad exposure helps protect against individual company setbacks while letting investors benefit from the overall growth of the U.S. economy.
2. Vanguard Total International Stock ETF (VXUS)
Smart investors often look beyond U.S. borders, and VXUS offers a ticket to global markets. This fund holds more than 7,000 stocks from both established and growing economies.
The cost stays low at 0.07%, making worldwide investing accessible. Companies from Europe take up about 40.4% of the fund, while Pacific region businesses represent 26.3%, and emerging markets make up 25.7%.
The fund pays regular dividends, currently yielding 2.86% as of late 2024. This income stream adds value for investors seeking regular payouts.
International markets often move differently from U.S. stocks, which can help smooth out portfolio returns over time.
Global investing brings unique factors into play. Currency changes can boost or reduce returns, and different countries face varying economic challenges. Yet many experts suggest holding international stocks can strengthen a portfolio’s foundation. VXUS makes this strategy simple by packaging global opportunities into one fund.
3. Schwab Total Stock Market Index Fund (SWTSX)
SWTSX opens the door to almost every publicly traded U.S. company. The fund tracks the Dow Jones U.S. Total Stock Market Index, covering the full spectrum from industry giants to promising smaller firms.
A rock-bottom expense ratio of 0.03% means investors keep more of what they earn. The broad reach of this fund helps capture growth opportunities across all market segments.
The fund shines by including companies of all sizes, not just the biggest players. Small companies with high growth potential sit alongside established market leaders in the portfolio.
This mix can lead to better returns over time as successful smaller firms grow into tomorrow’s leaders.
Tracking the whole market means investors don’t miss out on any sector’s success story. The fund adjusts automatically as the market changes, requiring no hands-on management from investors.
This passive approach has proven effective for long-term wealth building, making SWTSX a solid choice for many investment strategies.
4. iShares Core U.S. Aggregate Bond ETF (AGG)
AGG serves as a cornerstone for investors seeking stability through bonds. The fund includes U.S. Treasury bonds, corporate debt, and mortgage-backed securities.
Running costs stay minimal at 0.03%, keeping more money in investors’ pockets. The mix of different bonds helps spread out risks while providing a steady income.
Bond investors appreciate how AGG balances government security with corporate yields. The fund typically offers higher interest payments than pure government bond funds.
Regular income payments arrive like clockwork, making AGG popular among retirees and conservative investors who want predictable returns.
Market ups and downs affect AGG less than stock funds, though interest rate changes do matter. Rising rates can temporarily push bond prices down, but patient investors still receive their interest payments.
The fund’s broad bond market exposure helps protect against problems with any single bond issuer. Many financial plans use AGG to create a more stable investment mix.
5. Schwab U.S. Dividend Equity ETF (SCHD)
Companies with strong cash flows and consistent dividend payments form the backbone of SCHD. The fund tracks the Dow Jones U.S. Dividend 100 Index, focusing on businesses that reliably share profits with shareholders.
A low expense ratio of 0.06% helps investors retain more of their dividend income. Top holdings include established names like Amgen, AbbVie, and Cisco Systems.
The strategy targets companies that maintain stable dividends even during tough economic times.
This approach often leads to including mature businesses with solid market positions and strong balance sheets. Such companies typically generate steady profits, making them attractive for income-focused investors.
Regular dividend payments can add up significantly over time, especially when reinvested.
The fund’s holdings tend to weather market storms better than growth stocks, though they might not surge as high during bull markets. Many retirement portfolios use SCHD to generate income without selling shares.
6. Fidelity ZERO Large Cap Index Fund (FNILX)
Zero fees set FNILX apart in the investment world. The fund follows Fidelity’s large-company index, similar to the S&P 500 but without licensing costs.
This unique approach allows investors to keep every penny of their returns. Most large-cap funds charge something, even if it’s just a few cents per $100.
The holdings mirror what you’d expect from America’s biggest companies. Tech giants, financial powerhouses, and consumer brands make up large portions of the portfolio.
By cutting out index licensing fees, Fidelity created a fresh way to invest in market leaders without ongoing costs.
Growth and stability come from following established businesses with proven track records. The fund adjusts its holdings based on market changes, keeping investors connected to America’s corporate success stories.
Long-term investors particularly benefit from the zero-fee structure as savings compound over time.
7. Vanguard Real Estate ETF (VNQ)
Real estate investment trusts within VNQ own everything from apartment buildings to data centers. The fund opens up commercial real estate investing without the hassles of being a landlord.
Property income flows to investors through regular dividend payments, often higher than typical stock dividends. The 0.12% expense ratio stays competitive for specialized sector investing.
Different types of properties respond differently to economic changes. Shopping centers face different challenges than warehouses or healthcare facilities.
This variety helps spread risk across the real estate sector. Property values and rents tend to rise with inflation, offering some protection against rising prices.
VNQ lets investors tap into real estate profits through good times and bad. The fund handles property management, tenant issues, and market research through its REIT holdings.
Many financial advisors suggest real estate exposure can strengthen investment portfolios while providing steady income streams.
