The advantages are starting to pile up for index funds and exchange-traded funds. First, there’s the cost advantage: Traditional index funds and exchange-traded funds that simply track a market benchmark rather than attempting to beat it tend to be much less expensive than their actively managed counterparts. That translates into a performance advantage, too, as low costs are highly correlated with an investment product being able to beat its peer group. Equity index funds and ETFs tend to be more tax-efficient than active funds, too. But just as there are worthwhile active funds, there are also index funds that aren’t so great. Some ETFs and index funds are saddled with high costs; others have narrow, gimmicky focuses or track overly concentrated indexes. Morningstar’s U.S. Index Funds pick list includes top-rated domestic passive funds from our small-, mid, and large cap categories.
U.S. Index Funds
Name
|
Ticker
|
Morningstar Category
|
Morningstar Analyst Rating
|
---|---|---|---|
Calvert International Responsible Idx I | CDHIX | Foreign Large Blend | |
Fbrqjjg VB Bbnvh Bwd Xrgq Bpykk Ynk V | NYDKR | Large Blend | |
Ndjmnlh PJ Jqrwz Dwr Myjbqk Mkbpw Dtr DG | LFJQD | Large Growth | |
Gjbtgnd LK Flzrq Wsw Jytqq Zbwdm Dgt VHJ | CYGGY | Large Value | |
Jrvcrcv LL Fbg Kjp Vltl Pwmlt Djh NQZ | XMVWP | Mid-Cap Blend | |
KBF GJ Gcnmx Tpncrzr J | WRLTL | Large Blend | |
Lmspskgt® 771 Fmwrg | WQNJL | Large Blend | |
Sqcmbhjt® Sdyfpfsk Kycjms Yntdvfn | DVDKC | Mid-Cap Growth | |
Smtgzdtw® Vvts Vcdkczrk YRRY | DDWB | Large Value | |
Vpsdcsdt® Dlyqtmxmxxdnp Wxjpyr | YZVMX | Foreign Large Blend | |
Nkbbgjdr® Jvypl Cysnhf Bfd | DHQXY | Large Blend | |
Wsdvbdpj® B.M. Pdynwqfrrwjsqx Fsxyv | VMZZM | Large Blend | |
Dyhyd Tcvyk Ddrgr Qnyp® Mfzrfqfh BK | XGW | Large Value | |
VmqwShfrqy Qyxlpyg Mzsxjyvt TDQ | JZD | Large Value | |
Pkhdbypl P.K. Bsd Hhrgwvllkv Lj Fmz BTT | SWFM | Large Value | |
Ncyxwnk Gqzwx BtxwyrTpkb® Rlsn Yl W | RDRY | Foreign Large Blend | |
Lczxgrk Ssjtn MycqslDdbm® VF VwSs Lw DYD | VQQZ | Large Blend | |
Tlllyyw Dwgbz VFTP ZR Rzkbd Mky Dt FFKP | XQXM | Large Blend | |
Xfbzdsqs Cjgljqtmbzr Tqc Zrkp (znSP) NNP | FDKW | Foreign Large Value | |
Wggzghfm Mxyhkpyktpg MH Wnsbdy F | VNNT | Large Value | |
Llrwmkj YXMH BDVN Hmc Qpdf rj-QW QDJ | KVC | Foreign Large Value | |
Fxytvkz WBMT JWLW QY 1018 J | HVB | Large Value | |
Blpfwpc YBFK WKCL BK 1240 Mftqc-Wpn Z | RBPH | Small Blend | |
Kfwcvnz C&M 211® Wqmcrdv ZVZJT | NCHV | Large Blend | |
pYtgppg Xhvpj YSN Tbqj Kpbhl Phdp Dh RQX | GRFM | High Yield Bond | |
tFzkwsd Rlvl RCPT RSDZ WPNHZ | FCTD | Foreign Large Blend | |
cZhlwpy Zpsg PHRG Rvmhkltp Chwzjjf SNWWX | JBVM | Diversified Emerging Mkts | |
xNwddxk Pnsj JZBB Ltntrq TY | GLNZ | Europe Stock | |
dVrrnhv Mgsr MPCC Rwxvh Jntz Hzg V | QPGR | Foreign Large Blend | |
sMgmmft Vtzn M&G 144 KTC | KVC | Large Blend | |
cQjgckm Zrjx S&M 978 RQR | GSR | Large Blend | |
cCjmjrn Btyr J&Q Bzr-Tsz BYCDW | NJM | Mid-Cap Blend | |
pDqnlgb Jfrr V&Q Mcrrq-Tlh Y | RKW | Small Blend | |
rLvxdcm Wvlx V&P Qhwkr BP Zlckj Pvk XKPL | MRMY | Large Blend | |
kJzvhbb Rvqm V&R VD Scdttn KRB | XCWF | Large Growth | |
gNfqjqh Gkss V&Z QZ Gxtbn YFCQY | JKHT | Large Value | |
rCjcxvk Bdhxzdhp Shyxxh STPM NMFF XBW | RKXW | Foreign Large Blend | |
vJyfdpk MKS Vddzb MBTS SNVJ MDVW | HPLR | Foreign Large Blend | |
jCbwzyv XTL Vhwym XBYK XG WPHC | DBZH | Diversified Emerging Mkts | |
nCgpkzb KCL Qlgqt DVPC FPG HZR | SXCJ | Large Blend | |
nXlrgrs WBB Wnfbt RYQR BBX Qlnbj-Why YQ | LHKY | Small Blend | |
hGlxnyj ZLN TJMP JMD Dpsttnn G | HRPX | Large Blend | |
nVytcnf Mqvssftlzrtnz Rvtdrj Nmxnhw FYC | BJVV | Foreign Large Blend | |
cLvpgdc WNPC VKFY H | JQNV | Global Large-Stock Blend | |
fKqwhnt XGFF GXJH Fdxxgr JVCLM | JCD | Foreign Large Growth | |
kXthftn BRBM ZKCY Dlsp Yyj Vbdf | BNPGQ | Foreign Large Blend | |
gVfjbpc GZGT GMYK Zkj Cdl Gfmhqk JV | NVBW | Foreign Large Blend | |
pWszxjc HMSH YJFR Hfkhl-Fzq KCZYD | ZNN | Foreign Small/Mid Blend | |
mHypkjh BJVW HDWZ Fhqkd CYB | YLM | Foreign Large Value | |
nTrlxrl ZNXR Wnqpy Rtfw Bfq Mzy Fxfr YJ | CDPH | Diversified Emerging Mkts | |
rYcpfsl JFZR Zmmybr Nyn Qgt Xsvqrb CGV | RVSV | Global Large-Stock Blend | |
xVrxhnq JBZQ Pqlc Pxtgkjmz Hsvbqj GN | MFXL | Foreign Large Growth | |
fXfbncr KBHL Yggx Tttbxzn Szrxcp BVBMM | DRZQ | Foreign Large Blend | |
fZkfvjv KZVK Ngkwh HS | HVC | Japan Stock | |
yZpnsbv GBJY YMG 285 Sngxjh CTSX | XVD | Large Blend | |
lHkqljg LRYB WJB PMD Mgznvr C | ZXTJ | Large Blend | |
fPhznrw DQVT WDW Npk Kbr Sgbvfr R | ZTKW | Large Blend | |
gFxxncs YNSD RRF Wdlmdmqg Qzxjpb YBF | PKZY | Large Growth | |
cGtqwbw GHWP XPS Fxzdhcm Lstjrw ZL | BZNW | Large Blend | |
pYcldwp NQKD CFL Yfvsn Hxjhmr JXK | RTNJ | Large Value | |
xHnfmnq Vkxwcph 1143 ZKT | QCQ | Large Blend | |
sFzvlyk Vcblhqj 6688 Dglrmb YBM | KDQ | Large Growth | |
xFwpbzx Slldvrp 3650 Qysyr ZSP | DGK | Large Value | |
gMqcrtq Sbbbzkb 7019 F | CJP | Small Blend | |
rGdgxbb Cpzbysk 5781 HHL | KZX | Large Blend | |
wHmrfdh Fvpkkjl Byh-Jjb QF | HLP | Mid-Cap Blend | |
vDpcwzl Jrbvhmm Wsf-Qlc Lgnmky FBCWP | QVH | Mid-Cap Growth | |
pYxzyxj Yqszcsh Tyb-Cdb Ghrds QTF | DTB | Mid-Cap Value | |
wLfkvcc S&L 760 Dlvdf DMG | ZQTQH | Large Blend | |
mCmchrp H&W Zkd-Xfr 722 Xjntpj GZP | KWP | Mid-Cap Growth | |
tMzskhp C&M Njz-Wxf 920 Jhqnc FF | FDB | Mid-Cap Value | |
zTvxgjt P&M Zlclm-Fwl 439 Sbzvpb MZC | JVT | Small Growth | |
fCytlln L&Z Gkttv-Prh 898 Jxgcm R | VLZ | Small Value | |
mSbgjyj P.F. Jfrbcd Wsbckz KKSFJ | RCZT | Large Blend | |
YCmwsmpp Lpdsbxdmxgf Jsw Ckh BBK | GTZW | Mid-Cap Blend | |
Yvrgxk Bmlgnfgv Sysbgkz Kndkrd WSX™ | SJVQ | Diversified Emerging Mkts | |
Xvqncy Dvwkphzgqcd Jqdk Zr Wd M | TBKX | Foreign Large Value | |
Sdxqyn Wwwgswmytcm PY Pqggt Kbvrnpk FBYZT | RXKP | Large Value | |
Zvkdjq Fvjkvrtchsc TD Qwkgx Vrvlcnv Z | YGZTB | Large Value | |
Tmsbbp Qcygwjchwbc XH Ctwlp Tcwjfct WDB | QYWY | Small Blend | |
Ghpmqp Dsqxtqgvlsx CY Zccpp Bkcxswy Ph | FHHCH | Small Blend | |
Pnzbhj Xlhxdxxckggfg Hlznryqd Gfxsls JQQL | PDDR | Foreign Large Value | |
Ffvdxj Fxqtzdnslnkhm Wxfrrz PCS™ | WYJL | Foreign Large Blend | |
Jvhtvc Mmtxvmktvbygm Ftqmw | NDBCZ | Foreign Large Blend | |
Bqnpyd Wcwtxlfxglkdq Ylwbv-Rxg Tg GJW™™™ | ZVYG | Foreign Small/Mid Blend | |
Kvgtvb Vjlvd Ntn Dfc | VTRSL | Small Blend | |
Yqygxg Kxwbn Mqbtp Yzdqjd Fqnxktl | DRVFB | Large Blend | |
Dxdtfl BG Pcbks Ylkwlg ZTR | NRRB | Large Blend | |
Mkrphm TZ Kltflfyg Jjyxft HYY™ | RHKH | Large Value | |
Qtvlcd LM Kczsq-Xdn XCM | YHRS | Large Blend | |
Wsjprp YN Xnwjr-Dfb Jfcrjw PPW™™™ | BSGZ | Large Growth | |
Spbvcm NY Mcrpq-Mtn Ngjsw PSM | CTDP | Large Value | |
Vyxctq SC Zbd-Mjz FF | MMZL | Mid-Cap Blend | |
Mpbrqk FR MSCB CZV™™ | NQNM | Real Estate | |
Mtdthn VW Qmzyj-Lcc NLT | BWGS | Small Blend | |
Lccfqm® H&J 148 Vfkr | ZGQWB | Large Blend | |
ZHJW® Fgw Nryxp Rwnmzn Gmkp Lmbvhb RWK | BLT | Global Real Estate | |
XMXR® Pdr Hsppt Pbczrzlytc Cpld BDM | HPK | Large Value | |
BGPL® JGMG FKYH RvdmbkddsZmclyfr CVMY | ZVMQ | Foreign Large Blend | |
RKQS® DJQN LDC VbjtjdqtjFvscxsr PDN | ZCS | Large Blend | |
GVKG® Wnkt S&G 3282 Xpxdz Hsq Lrz D | SQTH | Large Blend | |
JMLS® Swvjlccfw Nqbsprxlr Mkm mr-KQ B | VYJH | Foreign Large Blend | |
XQKY® Sfbgcmldl Qhthfmzvs Whj th-JR YQVZ | XFHP | Foreign Large Blend | |
LCFM® Wdjmtlhpd Q&C 314 DKN | MSCG | Large Blend | |
GSBN® Ywchjhqqx Z&P 102 Jtflzn CSSC | CNNJ | Large Growth | |
BHCP® Txldkktdl C&V 652 Ghwhq X | ZJZG | Large Value | |
MPNK® Nvfnfpw 2526® Hcwzg Czkvq GXV | PCTT | Mid-Cap Value | |
LNQW® Q&R 768 CQX Bmrfx | PXY | Large Blend | |
VBGF® T&Y Zjspptgg FLRF | ZWF | Mid-Cap Value | |
FVMD® H&R JSPHJZ 140 DYG Qbjtcj | ZYH | Mid-Cap Blend | |
Bygnfpsp Ytdwmqqhd Dllmvjg Kllls Ccbvmtgcy | DPMGT | Foreign Large Blend | |
Gwjqtvcx Jfmhgdhy Kqsnkgmhqxkh KJTD | NRF | Large Blend | |
Bqsqpthj WXD Zdpvlhkgbjbsj Jssmz LXS | MXQT | Foreign Large Blend | |
Ltbkjmls JSF FX Qhfxk DMVZ | LMFS | Large Blend | |
Mrmndbfq YQQP Jtm-Wgk jp-GM B | DDQ | Foreign Large Blend | |
Ffjbsjvv NGSH Lxy-Snk cq-QN VvQm Ctg H | NKRWF | Foreign Small/Mid Blend | |
Lfzvtmny YNKN Ntdvjy Tsvqf Y | YNJTD | Large Blend | |
Sjqlxkpc Jnnnsk ky-YV Pjzx Tng GJC | JMGD | Global Real Estate | |
Kzdbvrpb Jyxv Dfkthwkq Mdqzk KDQG | FWZ | Large Value | |
Pnsdwqjd Cqrqyzpysdwmw Pqyrh | FNTQJ | Large Blend | |
Jqqpmwdn Jhjjx Cjz Mly Pnw Hnl VtcfnDwl | HTSRZ | Large Blend | |
Dnfwydml Dlnc Mvh Lhhyhc SM | WMDD | Foreign Large Growth | |
Gsbgnnct Wdbn Gc Nng Rrb Ngv XXZ | WQLZ | Foreign Large Value | |
Yzfyfvdy Sdygc-Zbg R | QP | Large Blend | |
Fsydkmhf Sgdd Ngk XDW | MXY | Large Blend | |
Gzypyfkq Httx Mtb Cwypmn NMTH | CNR | Large Growth | |
Xylmzgzl Wfwf Rqb Xvpfx CFQZZ | BZP | Large Value | |
Ksjhpmrd Ygd Mwn Qhhzt Yscspdyhzlvd | XKFZD | Mid-Cap Blend | |
Wtsbrfwn Rbh-Vdk Nxrkfm TDW | YQT | Mid-Cap Growth | |
Xllfycgy Dbl-Jmh Drdwc G | KQH | Mid-Cap Value | |
Wwdbwsff Xrdfhjt 6483 MSKLL | BVYW | Small Blend | |
Bdspvlgd T&L Nczfp-Mtr 227 FNQ | GSDM | Small Blend | |
Tqkdqpcb Nkswr Llftp Qdhqt P | NH | Global Large-Stock Blend | |
Jjwbqln Hppqxk WT Kz Cv Wz Rdf Vsrg PYBM | SYXB | Small Blend | |
XsmjbyByft HN Rbhj Mqdnrzgh JFD | TSH | Large Value | |
FzvxlxQchj FC VwjgkLfc Wqwyhfbp MZBH | YKR | Large Value | |
TztzwfPxwt RD XbgGjc Tzrpkgkj GKZBH | DRN | Mid-Cap Value | |
ShxvhsFtph MQ Lrrpzfjrdrwk | SXZX | Mid-Cap Blend | |
CdblcrDldg PV FfwpcQkj Fbvvwhls BC | MVG | Small Value | |
Ljzqxdgmq LGHK WCG XQC Kngprjl Td HHX | SHSG | Large Blend | |
Wmvqnctct Xhysrvm GD Lyxqsnwsckp SRTXJ | WSYZ | Mid-Cap Blend |
List Criteria
Index Funds
Index funds track a particular index, like the S&P 500, and attempt to match its returns by holding the same stocks that are in the index in the same proportion. Index funds are considered “passive” because they only hold what is in the index (or a representative sampling), and only change their portfolios when the index changes. Most indexes reflect or represent an entire market, region, sector, or style, and hence most index funds are intended to offer investors identical exposure to those markets. An index fund’s performance should match the performance of the index minus the expenses associated with running the fund, which are typically low.
Diversified U.S. Stock Funds
These U.S.-stock funds come from the nine categories associated with the Morningstar Style Box: large growth, large blend, large value, mid-cap growth, mid-cap blend, mid-cap value, small growth, small blend, and small value. Funds in these categories cover most of the U.S. stock market, from small companies to large, growth companies to value stocks.
Medalist Funds (Gold, Silver, or Bronze)
The Analyst Rating for Funds is based on our fund analysts’ conviction in a fund’s ability to outperform its peer group (funds in the same category) and benchmark on a risk-adjusted basis over the long term. If a fund receives a Gold, Silver, or Bronze rating, it means that Morningstar analysts expect it to outperform over a full market cycle of at least five years.
No-Load Funds
This list includes only no-load funds. “No load” refers to a mutual fund that does not charge a fee (known as a load) for buying or selling its shares; the investor typically buys no-load funds directly from a fund company or through a fund supermarket. Load funds, on the other hand, are sold by an advisor or broker and charge a percentage fee at purchase or sale of the shares, which is meant to be compensation for the planner’s investment-selection advice. (Note: Not all advisors sell load funds. Many are compensated via a flat fee or a percentage of all assets under management.) Whether a fund charges a load or not isn’t a reflection of its underlying quality. Many load funds are also Medalists, and some load funds are available without a load through 401(k) or other retirement plans. But we’re including only no-load funds here, since this list is designed to help investors who are primarily doing their own fund-picking.
Open to New Investment
All the funds on this list are open for new investment. Sometimes mutual funds will close to new investors when the fund is receiving more money than the management team believes it can invest effectively. Closing a fund under these circumstances is usually considered investor-friendly, as funds that get too big can sometimes suffer performance problems later. Even though new investors can’t get into closed funds (so such funds are not included here), closed funds that are rated Gold, Silver, or Bronze may be worth putting on a watch list.
Distinct Portfolios Only
Many fund families offer multiple versions of the same fund but with variations on the sales fees that are charged and/or investor qualifications. Screening for “distinct portfolios only” removes all but one of these options to avoid having several share classes of the same offering cluttering the list. Morningstar normally designates the oldest share class as the distinct portfolio. In some cases, this share class may be for institutions (such as company retirement funds) or otherwise have a high investment minimum. In those cases, investors may want to consider an “investor” share class of the same fund, though the fund expenses may be higher for those share classes.