Which S&P 500 Index Fund Should You Pick? Here's the Real Deal

Looking to get passive income from the top 500 US companies without picking stocks one by one? S&P 500 index funds are your move—basically you’re buying a tiny slice of Apple, Microsoft, Amazon, Google, Tesla and 495 others all at once.

The three heavyweights right now:

Fidelity 500 (FXAIX): Dirt cheap at 0.015% fee, $380B under management, zero minimum to start. Been around since 1988 but the current version kicked off in 2011. 5-star rated.

Vanguard 500 Admiral (VFIAX): The OG—Vanguard literally invented index funds for regular people back in 2000. 0.04% fee, $289B AUM, but needs $3k minimum. Also 5 stars.

Schwab S&P 500 (SWPPX): The dark horse with 0.02% fee (middle ground), no minimum, $66B AUM, 4 stars. Solid choice if you want lowest fees without the Fidelity/Vanguard premium.

The math: S&P 500 historically returns ~10% annually. Using the Rule of 72, your money doubles roughly every 7 years. All three funds pay dividends and require basically zero effort—set it and forget it.

The catch: Expense ratios compound over time. On a $10k investment, paying 0.015% vs 0.04% saves you $250+ over a decade. Pick based on your minimum investment budget and how much you’re putting in.