Passively managed funds are a great way to invest in the market without having to spend too much time managing your portfolio. They are also known as index funds, which means they track a particular index such as the S&P 500 or the NASDAQ. One of the biggest advantages of passively managed funds is their low expense ratio.
Expense ratio refers to the fees that investors pay for owning a fund and covers expenses such as management, administrative costs, and marketing fees. Passively managed funds have lower expense ratios compared to actively managed ones because they do not require as much research and analysis by fund managers.
Here are some of the top 15 passively managed funds with low expense ratios:
1. Vanguard Total Stock Market Index Fund (VTSAX) – This fund tracks the performance of U.S. stocks across all industries.
2. Fidelity ZERO Total Market Index Fund (FZROX) – This is another U.S.-based stock market index fund with no expense ratio.
3. Schwab Total Stock Market Index Fund (SWTSX) – Tracks companies on major U.S exchanges including small-cap companies and mid-cap.
4. iShares Core S&P 500 ETF (IVV) – A popular exchange-traded fund that tracks the performance of large-cap American companies in various sectors.
5. Vanguard S&P 500 ETF (VOO) – Another exchange-traded fund tracking large cap US stocks
6.Vanguard Real Estate ETF(VNQ)-Investors who want exposure to real estate can consider this real estate investment trust( REIT).
7.Vanguard Mid-Cap Value ETF(VOE)-Investors looking for medium-sized firms with growth potential would like this mix
8.Fidelity MSCI Energy Index ETF(FENY)-This passive energy sector-focused company has an average fee rate than its competitors.
9.iShares Edge MSCI USA Quality Factor(EQUAL)-This unique passive ETF invests in firms with strong balance sheets and consistent earnings.
10.Schwab U.S. Mid-Cap ETF(SCHM)-Schwab’s mid-cap-focused fund has a much lower expense ratio than its peers
11.Vanguard Consumer Staples ETF(VDC)-This passive consumer goods-focused index offers diversification across the industry
12.iShares Core S&P Small-Cap ETF(IJR)-A small-cap focused index that is cost-effective for investors, this fund too has low fees.
13.Vanguard Total International Stock Index Fund (VTIAX) – This passively managed international stock market index includes companies from developed and emerging markets outside of the United States.
14.iShares MSCI EAFE ETF (EFA) – An exchange-traded fund that tracks non-U.S. large- and mid-cap stocks in developed countries in Europe, Australasia, and the Far East.
15.Fidelity MSCI Health Care Index ETF(FHLC)- A healthcare sector-focused company with an average fee rate compared to its competitors
Passively managed funds are excellent investment vehicles for those looking to minimize expenses while still gaining exposure to various sectors of the market. By minimizing expenses through low-cost funds like these 15 above options can be beneficial over time as investors keep more of their profits within their portfolios rather than being eaten up by high costs or fees.