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?

RELATED FAQS

  1. What does a mutual fund's beta coefficient measure?

    Evaluate the risk associated with a particular mutual fund by determining its beta coefficient, which illustrates the fund's ...
  2. What's the safest way to invest in high-yielding dividend stocks?

    Learn about some of the most important safety factors that you need to consider before you invest in high-yielding dividend ...
  3. How can I get a mutual fund prospectus?

    Read and understand the prospectus before investing in a mutual fund. You can obtain a copy from the fund company, your financial ...
  4. Can I purchase mutual funds for my IRA?

    Learn how to invest your IRA assets in mutual funds. Discover a few of the different types of mutual funds available for ...
RELATED TERMS
  1. Annual Crediting Cap

    The maximum rate of index growth that an annuity will be credited ...
  2. Historic Pricing

    A method for calculating the value of an asset using the last ...
  3. Bear Fund

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

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

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

    Investopedia explains: A Product Portfolio is the collection ...
Related Articles
  1. The iShares FTSE China 25 Index Fund etf has become popular with investors seeking China exposure. Here's why.
    Stock Analysis

    This ETF Offers Easy Access To China's ...

  2. Africa's economic growth and growing stability has gotten the attention of adventurous investors. What kind of ETF or mutual fund options are available?
    Mutual Funds & ETFs

    Destination Africa: These Funds Offer ...

  3. With its huge population and booming economy, China is tops for many emerging markets investors. Here's a leveraged ETF for those who want to double down.
    Stock Analysis

    This Leveraged ETF Is For China Bulls

  4. These ETFs are an excellent place to start for any investor interested in betting on Latin America.
    Mutual Funds & ETFs

    Interested In Latin America? Eye These ...

  5. With more ETFs to trade, the risks associated with these investments have grown. To mitigate these risks, ETF options are a hedging strategy for traders.
    Mutual Funds & ETFs

    ETF Options Hedge Risk of ETF Trades

Trading Center