Best Index Funds to Buy in 2025 in the US: Top Picks for Long-Term Investors

Choosing the best index funds to buy in 2025 in the US starts with understanding one simple truth: low costs and broad diversification beat stock-picking over time. Whether you are building your first portfolio or rebalancing an existing one, index funds remain the most reliable vehicle for capturing market returns without paying for active management.

Why Index Funds Still Win in 2025

Passive investing keeps gaining ground because the math is hard to argue with. Expense ratios on top US index funds now sit below 0.05%, and total stock market exposure can be bought for as little as $0 in commissions at major brokers. In a year when rate cuts, AI-driven earnings, and election-cycle volatility dominate headlines, a low-cost S&P 500 or total market fund removes the guesswork. The best index funds to buy in 2025 in the US are the ones that track broad benchmarks, keep fees minimal, and offer tax efficiency in taxable accounts.

Top Index Funds to Consider

Vanguard Total Stock Market ETF (VTI) — captures the entire US equity market, from mega-caps to small-caps, with an expense ratio around 0.03%. A core holding for anyone who wants maximum diversification in a single ticker.

Vanguard S&P 500 ETF (VOO) and iShares Core S&P 500 ETF (IVV) — near-identical exposure to the 500 largest US companies at roughly 0.03%. Ideal for investors who want the benchmark that most professional managers fail to beat.

Vanguard Total International Stock ETF (VXUS) — adds non-US developed and emerging markets, reducing home-country bias. Pair it with a US fund for a simple two-fund portfolio.

Schwab US Dividend Equity ETF (SCHD) — a quality-dividend screen for income-focused investors, still cheap at about 0.06%.

How to Pick the Right Fund for Your Goals

Focus on three variables: expense ratio, tracking difference, and tax placement. Hold broad market ETFs in taxable brokerage accounts and keep bond or REIT funds in tax-advantaged retirement accounts. If you are searching for the best index funds to buy in 2025 in the US, prioritize total cost of ownership over brand name. A 0.03% fund and a 0.20% fund can differ by tens of thousands of dollars over a 30-year horizon. Rebalance annually, automate contributions, and ignore short-term noise.

Conclusion

The best index funds to buy in 2025 in the US are low-cost, broadly diversified, and boring by design. Build a core around VTI or VOO, add international exposure with VXUS, and let compounding do the work. Discipline and low fees will outperform market timing every decade.

Open a brokerage account today, compare expense ratios on these funds, and start building your low-cost index portfolio this week. Перейти к подборке →