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.

mf-article-img.jpg
Watch: Mutual Funds

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?

RELATED FAQS

  1. What are the best ways to lower my investing fees?

    Lower your investing fees by buying index funds or ETFs, choosing the right mutual fund share class, evaluating breakpoints ...
  2. What is the difference between a 401(k) plan and a 403(b) plan?

    Administered by for-profit, private companies, 401(k) plans are more common than the nonprofit or government-sponsored 4 ...
  3. When can you trade the stocks in the Dow Jones Industrial Average (DJIA)?

    Find out when you can trade shares linked to the Dow Jones Industrial Average during NYSE and Nasdaq trading sessions.
  4. Can you buy shares in the Dow Jones Industrial Average (DJIA)?

    Invest in the Dow Jones Industrial Average index through index funds or ETFs.
RELATED TERMS
  1. Bear Fund

    A mutual fund designed to provide higher returns when the market ...
  2. Ulcer Index - UI

    An indicator developed by Peter G. Martin and Byron B. McCann ...
  3. Investment Company Act Of 1940

    Created in 1940 through an act of Congress, this piece of legislation ...
  4. Product Portfolio

    Investopedia explains: A Product Portfolio is the collection ...
  5. Sharpe Ratio

    A ratio developed by Nobel laureate William F. Sharpe to measure ...
  6. Target-Date Fund

    A mutual fund in the hybrid category that automatically resets ...
comments powered by Disqus
Related Articles
  1. 3 ETF Signals You May Use For Confirmation
    Economics

    3 ETF Signals You May Use For Confirmation

  2. Are All ETF Correlations Barreling Towards ...
    Mutual Funds & ETFs

    Are All ETF Correlations Barreling Towards ...

  3. Why Did ETFs Become So Popular?
    Markets

    Why Did ETFs Become So Popular?

  4. How To Invest In The Nikkei 225
    Mutual Funds & ETFs

    How To Invest In The Nikkei 225

  5. Will ETFs Eventually Replace Mutual ...
    Mutual Funds & ETFs

    Will ETFs Eventually Replace Mutual ...

Trading Center