If you're evaluating mutual funds for your investment portfolio or retirement account, this list highlights the best index fund to consider now, based on it having outperformed the S&P 500 over the past one-, three-, five- and 10-year periods.
Of 215 index funds at least 10 years old, just one is a winner among the 2024 IBD Best Mutual Funds.
The goal of index funds is to replicate the performance of a benchmark such as the S&P 500. These passive investment vehicles have been at the forefront of a revolution in U.S. equity markets, capturing the attention and investment dollars of a growing number of investors. In 2012, passive index funds that track market benchmarks made up just 21% of the U.S. equity fund market. In 2023, they accounted for more than 50% of assets, outperforming actively traded funds.
For more details, read about how the best mutual funds deliver benchmark-beating returns, and see the full 2024 list of IBD's Best Mutual Funds in every category, including bond funds, diversified stock funds, blend and index funds, and breakouts of large-cap, midcap and small-cap funds.
All returns are as of Dec. 31, 2023.
Best Index Fund
| Fund | Symbol | 1-year total return | 3-year average annual return | 5-year average annual return | 10-year average annual return | Morningstar category | Annual report net expense ratio |
|---|---|---|---|---|---|---|---|
| Benchmark: S&P 500 TR USD | 26.29% | 10% | 15.69% | 12.03% | Large Blend | ||
| Voya Russell Large Cap Growth Idx Port I | IRLNX | 45.99 | 10.1 | 20.21 | 15.52 | US Fund Large Growth | 0.43% |
Sources: IBD, Morningstar Direct
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