Index fund investing has never been more accessible — or more affordable. Index funds now account for the majority of all U.S. fund assets, per ICI data, reflecting a massive shift away from high-fee active management. Choosing the right low-cost fund can save thousands in fees over a lifetime of investing, and pairing smart fund selection with solid expense tracking tools keeps your full financial picture in focus. Here are five of the best low-cost index funds to consider in 2026 — let's get started!
Quick Answer
Low-cost index funds track market indexes with minimal fees, typically charging 0.03%–0.20% expense ratios. Top options in 2026 include broad U.S. market funds from Vanguard, Fidelity, and Schwab. These funds now hold the majority of U.S. fund assets, saving investors thousands in fees compared to actively managed alternatives over a lifetime of investing.
Jump to
Summary Table
| Item Name | Price Range | Best For | Website |
|---|---|---|---|
| Fidelity Zero Large Cap Index Fund | 0% expense ratio | Cost-conscious long-term investors | Visit Site |
| State Street SPDR Portfolio S&P 500 ETF | 0.02% expense ratio | S&P 500 exposure at near-zero cost | Visit Site |
| Schwab U.S. Broad Market ETF | 0.03% expense ratio | Broad U.S. market diversification | Visit Site |
| Vanguard Total World Stock ETF | 0.07% expense ratio | Global diversification in one fund | Visit Site |
| iShares Core Dividend ETF | 0.05% expense ratio | Income-focused dividend investors | Visit Site |
5 Top Low-Cost Index Funds for 2026
Below you'll find detailed information about each option, including what makes them unique and their key benefits.
1. Fidelity Zero Large Cap Index Fund
The Fidelity Zero Large Cap Index Fund (FNILX) is one of the most compelling low-cost index funds available, carrying a 0.00% expense ratio — literally free to hold. It tracks large U.S. companies similar to the S&P 500, making it a strong core portfolio holding for cost-conscious investors who want broad domestic equity exposure without paying annual fees.
Key details:
- Expense ratio: 0.00% (no annual management fee)
- No minimum investment required
- Available exclusively through Fidelity accounts
2. State Street SPDR Portfolio S&P 500 ETF
The SPDR Portfolio S&P 500 ETF (SPLG) offers one of the cheapest ways to track the S&P 500 index as an exchange-traded fund. At just 0.02% expense ratio, it undercuts many competitors and trades on exchanges like a stock, giving investors flexibility to buy and sell intraday. It's particularly suited for brokerage account investors who prefer ETF structure over mutual funds when building a passive, low-fee portfolio.
Key details:
- Expense ratio: 0.02% annually
- Tracks all 500 S&P 500 companies
- Lower share price than SPY, making it accessible for smaller investors
3. Schwab U.S. Broad Market ETF
The Schwab U.S. Broad Market ETF (SCHB) offers exposure to nearly 2,500 U.S. stocks — small, mid, and large cap — at a 0.03% expense ratio, making it ideal for investors who want total market coverage rather than just large-cap funds. Unlike S&P 500-only options, SCHB captures small and mid-cap growth potential while keeping costs minimal. Using free budget templates alongside low-fee ETFs like SCHB can help you track exactly how much you're saving on fees annually.
What you get:
- Expense ratio: 0.03% annually
- ~2,500 holdings across the full U.S. market
- No investment minimum when purchased as an ETF
4. Vanguard Total World Stock ETF
For investors wanting a single-fund solution to global equity exposure, VT bundles U.S. and international stocks into one low-fee ETF with an expense ratio of 0.07%. It tracks the FTSE Global All Cap Index, holding over 9,500 stocks across more than 47 countries. Unlike the Admiral Shares mutual fund version, VT can be purchased for the price of a single share with no minimum investment requirement, making it ideal for budget-conscious beginners.
Notable perks:
- Expense ratio: 0.07% — one of the lowest for all-world coverage
- No minimum investment beyond one share price
- Instant diversification across U.S. and international markets
5. iShares Core Dividend ETF
The iShares Core Dividend Growth ETF (DGRO) gives income-focused investors access to dividend-paying U.S. stocks through a single, passively managed fund with an expense ratio of just 0.08%. For investors building a low-cost portfolio, DGRO blends growth and income by tracking the Morningstar US Dividend Growth Index, which screens for companies with consistent dividend increase histories rather than simply the highest yields.
Key details:
- Expense ratio: 0.08% — among the lowest for dividend-focused index ETFs
- Holds 400+ stocks across sectors including financials, healthcare, and technology
- Suitable for long-term investors seeking passive income without high fund costs
Final Words
Low-cost index funds remain one of the smartest paths to long-term wealth — whether you prioritize minimal fees, broad diversification, tax efficiency, passive income, or simplicity. Explore your investment platform options and start building today.