How do I find mutual funds that track indexes?

By Richard Loth AAA
A:

The two best sources for finding index funds are Fidelity Investments and Vanguard.

Of the 57 index funds in investment research firm Morningstar's database, two fund companies account for 39 of them - 12 by Fidelity and 27 by Vanguard. Of the 18 index funds not sponsored by either Fidelity or Vanguard, about a dozen are S&P 500 Index mutual funds offered by other fund companies. So, as can be seen, Fidelity and Vanguard dominate the world of index investing.

The best way to access information on index funds from Fidelity is to go to their website and enter "Index Funds" in the search box. This will take you to a listing of their index funds. By clicking on a fund name you will bring up a screen with a list of data links that provide a very comprehensive picture of a fund's investment features.

The same approach is recommended for Vanguard, which is generally considered to be the leading fund company in the index field. On the home page, click on Personal Investors, then Vanguard mutual funds and exchange-traded funds (ETFs), and then Index funds only to get their complete listing. Like Fidelity, the information on individual funds is very detailed and informative.

If you have a Premium Membership with Morningstar, you can access its index fund listing and then go straight to a Morningstar fund report to get its complete, objective analysis of an index fund's investment qualities.

To find out more about index funds, read Index Investing, The Lowdown On Index Funds and Enhanced Index Funds - Shiny Paper Or Sparkling Gift?

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