Top Index Funds for 2020

We found 11 online brokers that are appropriate for Trading Index Funds.

Best Index Funds Guide

Best Index Funds

For any trader, the best index funds mean a great opportunity to make a profit with lower risks on investment. Beginners often to trade in index funds instead of individual stocks.

Let us understand what is an index fund is. An Index fund is a pre-set basket of stocks created by a fund manager or a brokerage firm to minimize loss and maximize the potentiality of making a profit.

What to Look for with Index Funds

Index Funds are rising in popularity as trading index funds has become more accessible over the last decade.

You can choose from many index funds to add to your portfolio.

Whether you are planning to diversify your investments for your retirement or other plans, index funds are always a great options.

Overview of Index Funds

Index funds are a type of mutual fund or ETF. The index fund tracks the market and mirrors the index performance in the market.

ETF is short for exchange-traded fund.

As the investor, you will be investing in the shares of the index fund that tracks specific stocks you choose.

You can invest in all of the companies which make up that specific index.

For instance, you might be purchasing Vanguard 500 Index Funds, or VFINX which tracks the S&P 500 Index.

When the S&P 500 goes up, the Vanguard fund will go up too but keep in mind that this does not include the expense fees.

As the Index funds focus on the market indexes, it is not anything like regular mutual funds.

In regular mutual funds, the portfolio managers are actively purchasing and selling the investments with the funds and this can cause the high volatility in your investment.

It does not work like that in the Index funds as there will be less activities from the portfolio managers. As a result, index funds often come with low expense fees and are less risky compared to conventional mutual funds.

Index funds are low cost, low risk, and a straightforward way to diversify your resources into several investment types at once. If you are interested in low risk and low cost long-term investment, index funds can be a great choice for you.

The Index Funds in diversification

Each individual portfolio is different. Your portfolio can be made of a combination of investment types which are different for one person to the other.

There are a lot of factors that can help you determine your requirement and the best way is to consult with the experts for the portfolio allocation recommendations.

There are asset classes that you should research the information on in advance, before deciding the types of your index funds.

US Stocks

As the name suggests, US stocks are associated with the American companies.

The index fund will track some companies on every financial scale. Whether it is small, mid-sized, to large companies, the choice is yours.

If you want to invest only in large companies, you should focus on the more mature companies.

Foreign stocks

This will give you exposure to the companies in other countries.

Index funds allow you to keep tracking on companies in other parts of the world such as China, Brazil, Japan, Korea, and so on.

Other than the top countries, you could also choose to follow index funds of developed countries.

The economy is growing rapidly in certain growing countries. It can be beneficial for your investment portfolio.

Real Estate

Real estate investment is associated with retirement.

Property and real estate is actually a complex investment, because there are many kinds of properties with different market segments to choose. You will get the exposure by following the right index such as the MSCI US REIT Index.

Bonds

It will give you the opportunity to get exposure from investment-grade bonds traded in the US and other countries. This includes the securities, mortgage-backed bonds, government bonds, corporate bonds, as well as foreign bonds. Consult with your experts for the right bonds for you to choose.

Tips to choose the best Index funds for you

So, where do you start?

Support your portfolio

Put simply, you will want your index funds investment to support the rest of your portfolio.

Stocks can be the great choice for long-term growth.

For the stable investment, you cannot go wrong with the bonds. If you already have a good portfolio, you must look for other items to balance it.

It is a great idea to balance between your US, UK and other international stocks.

Speaking of the size of the companies you are investing, you could also consider balancing large and small company stocks.

The Low Expense Ratios

As mentioned, Index funds are low cost and thus you will want to stick to that principle.

The advantage of some index funds are the lower cost.

No matter how much experience you have in investing, it should not be a problem to start managing the index funds.

You should pay attention to index funds expense ratios and the best option is index funds which come with expense ratios lower than 0.1%. Most of the successful index funds are those with the lower expense ratios.

How would you liquidate?

The index funds come in two main types, the mutual funds and exchange-traded funds.

The mutual funds trade once on a daily basis. They also come with fixed net asset value. In cases like this the assets are not a significant party.

Meanwhile, for exchange-traded funds, the assets could come with the dramatic impact.

If you are often trading, you should focus on high-asset funds.

If you are occasionally trading, consider selecting the ones with the lower expense ratio. It will give you a lot of advantages in the long run.

What will you track?

The exposure to your investments is also an important aspect to consider. You can find indexes that cover the part of the market that you desire.

From the broadest market benchmarks to the smaller niches, there are a lot of choices. This will be postive if you are working with a reputable and trustworthy investment firm and you could consult their professionals to help you pick the right index funds.

The good track record

It is a fact that the index fund has clear objectives.

However, it does not guarantee 100% that it will achieve the specific goal. The index fund will provide a good return when the condition is inevitable.

Focus on the index funds which have a good track record to ensure much better results.

Best Index Funds Popularity

Best index funds are highly popular among traders as with a single purchase they can own several companies.

Suppose a share of Standard & Poor's 500 Index is bought. This, by default, means owning a share of 500 companies listed on S&P.

In today's financial scenario the S&P 500 index fund is one of the most popular ones as a high return is almost guaranteed over the longer term.

It is suggested to invest in Index funds for longer periods, about five years plus.

Best Index Funds Advantage

Apart from low risk there are several advantages of best index funds and few are as discussed below:

Low cost

Compared to individual stocks the best index funds are less expensive. It is passively managed and so the charges are low compared to those which are actively managed.

Diversification

The index funds comprise of top companies with respect to market capitalization and investors can reduce risk by investing in it.

Who Should Invest in Best Index Funds

It is best for such traders who want to invest for the long term.

It is also perfectly suited for such investors who have less time to constantly monitor the market.

The best index funds can mirror returns of the best exchanges.

It is best for those who wish to hold the investment for five years or longer period.

Best Index Funds Features

Index funds are less risky and to be considered investing in the long term.

The profit level relies on the choice of an index as well as the low volatility of the index.

The profit earned from index funds is a reflection of the index.

It is passively managed and so cannot outperform the market.

Passive management means less expense ratio and so the charges are less compared to actively managed ones.

It provides broad market exposure.

Index Funds Verdict

The best way to make use of the index funds in your portfolio is to focus on the index funds that meet your needs and capability.

Investing in one of the best index funds means it is cost-efficient. This is one of the primary reasons why investors are interested in Index funds.

Index funds do not require active management and hence are perfect for investors who have less time to monitor the market.

Investing in index funds offers lots of benefits at a minimal cost. It has gained popularity in recent years for long term investors.

Consult with professionals and make full use of the brokers educational resources and research tools for more informative decisions.

We've collected thousands of datapoints and written a guide to help you find the best Index Funds for you. We hope this guide helps you find a reputable broker that matches what you need. We list the what we think are the best index funds below. You can go straight to the broker list here.

Reputable Index Funds Checklist

There are a number of important factors to consider when picking an online Index Funds trading brokerage.

Our team have listed brokers that match your criteria for you below. All brokerage data has been summarised into a comparison table. Scroll down.

Our brokerage comparison table below allows you to compare the below features for brokers offering Index Funds.

We compare these features to make it easier for you to make a more informed choice.

Top 15 Index Funds of 2020 compared

Here are the top Index Funds.

Compare Index Funds min deposits, regulation, headquarters, benefits, funding methods and fees side by side.

All brokers below are index funds. Learn more about what they offer below.

You can scroll left and right on the comparison table below to see more index funds that accept index funds clients

Broker eToro IC Markets Trading212 Roboforex XTB City Index Plus500 Pepperstone XM FXPrimus EasyMarkets
Rating
Regulation Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC) Australian Securities and Investment Commission (ASIC), Financial Services Authority (FSA), Cyprus Securities and Exchange Commission (CySEC) Financial Conduct Authority (FCA), Financial Supervision Commission (FSC) Cyprus Securities and Exchange Commission (CySEC) Financial Conduct Authority (FCA), FCA number FRN 522157, Cyprus Securities and Exchange Commission (CySEC), CySEC Licence Number: 169/12, Comisión Nacional del Mercado de Valores, Komisja Nadzoru Finansowego Financial Conduct Authority (FCA), Australian Securities and Investment Commission (ASIC), Monetary Authority of Singapore (MAS) Plus500UK Ltd authorized & regulated by the FCA (#509909), Plus500CY Ltd authorized & regulated by CySEC (#250/14), Plus500AU Pty Ltd (ACN 153301681), ASIC in Australia AFSL #417727, FMA in New Zealand, FSP #486026 and Authorised Financial Services Provider in South Africa FSP #47546 Financial Conduct Authority (FCA), Australian Securities and Investment Commission (ASIC), Dubai Financial Services Authority (DFSA), Pepperstone Markets Limited is incorporated in The Bahamas (number 177174 B), Licensed by the Securities Commission of The Bahamas (SCB) number SIA-F217 International Financial Services Commission(IFSC), Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investment Commission (ASIC) Cyprus Securities and Exchange Commission (CySEC), The markets in financial instruments directive (MiFID) Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investment Commission (ASIC)
Min Deposit 200 200 1 1 No minimum deposit 25 100 200 5 100 100
Funding
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
Used By 12,000,000+ 60,000+ 14,000,000+ 10,000+ 200,000+ 14,000+ 15,500+ 10,000+ 70,000+ 10,000+ 142,500+
Benefits
  • Offers STP
  • Low min deposit
  • Offers Negative Balance Protection
  • Allows scalping
  • Allows hedging
  • Low min deposit
  • Offers Negative Balance Protection
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Guaranteed stop loss
  • Offers Negative Balance Protection
  • Allows scalping
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Allows scalping
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Offers Negative Balance Protection
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Guaranteed stop loss
  • Offers Negative Balance Protection
  • Low min deposit
  • Offers Negative Balance Protection
  • Allows scalping
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Offers Negative Balance Protection
  • Allows scalping
  • Allows hedging
  • Low min deposit
  • Offers Negative Balance Protection
  • Allows scalping
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Allows scalping
  • Allows hedging
  • Low min deposit
  • Guaranteed stop loss
  • Offers Negative Balance Protection
Accounts
  • Demo account
  • Standard account
  • Islamic account
  • Demo account
  • Mini account
  • Standard account
  • Zero spread account
  • Raw Spread account
  • Islamic account
  • Demo account
  • Demo account
  • Micro account
  • Mini account
  • Standard account
  • Zero spread account
  • ECN account
  • Islamic account
  • Pro account
  • Demo account
  • Micro account
  • Mini account
  • Standard account
  • Islamic account
  • Demo account
  • Micro account
  • Mini account
  • Standard account
  • Managed account
  • Demo account
  • Standard account
  • Islamic account
  • Demo account
  • Mini account
  • Standard account
  • ECN account
  • Islamic account
  • Demo account
  • Micro account
  • Standard account
  • Zero spread account
  • Islamic account
  • Demo account
  • Micro account
  • Mini account
  • Standard account
  • ECN account
  • Managed account
  • Islamic account
  • Demo account
  • Micro account
  • Mini account
  • Standard account
  • Islamic account
Spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
Platforms Web Trader, Tablet & Mobile apps MT4, MT5, Mirror Trader, ZuluTrade, Web Trader, cTrader, Mac Web Trader, Tablet & Mobile apps MT4, MT5, Mac, Web Trader, cTrader, Tablet & Mobile apps MT4, Mirror Trader, Web Trader, Tablet & Mobile apps MT4, Web Trader, Tablet & Mobile apps Web Trader, Tablet & Mobile apps MT4, MT5, Mac, ZuluTrade, Web Trader, cTrader, Tablet & Mobile apps MT4, MT5, Mac, Web Trader, Tablet & Mobile apps MT4, Mac, Mirror Trader, Web Trader, Tablet & Mobile apps MT4, Web Trader, Tablet & Mobile apps
Support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
Learn More Sign Up with
etoro
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icmarkets
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trading212
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roboforex
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xtb
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cityindex
Sign Up with
plus500
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pepperstone
Sign Up with
xm
Sign Up with
fxprimus
Sign Up with
easymarkets
Risk Warning 75% of retail investor accounts lose money when trading CFDs with this provider. Losses can exceed deposits CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Losses can exceed deposits 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. 74% of retail investor accounts lose money when trading CFDs with this provider 76.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78.6% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money Your capital is at risk Losses can exceed deposits Your capital is at risk
Demo eToro
Demo
IC Markets
Demo
Trading 212
Demo
Roboforex
Demo
XTB
Demo
City Index
Demo
Plus500
Demo
Pepperstone
Demo
XM
Demo
FXPrimus
Demo
easyMarkets
Demo
Excluded Countries IR, KP, BE, CA, JP, SY, TR, IL, BY, AL, MD, MK, RS, GN, CD, SD, ZW, ET, GH, TZ, LY, UG, ZM, BW, RW, TN, SO, NA, TG, SL, LR, GM, DJ, CI, PK, BN, TW, WS, NP, SG, VI, TM, TJ, UZ, LK, TT, HT, MM, BT, MH, MV, KZ, GD, FJ, BB, BM, BS, AG, AI, AW, LB, SV, PY, HN, GT, PR, NI, AF, GN, SL, BW, IR, SY, MM, IQ, TG, KH, LS, YE, CI , LR, ZW, CU, LY, TZ, CG, ML, BO, LR, NE, AO, GM, NG, AG, GH, KR, KG, GN, SN, NA US US, JP US, IN, PK, BD, NG , ID, BE US, CF, TD, CG, CG, CI, CU, GN, ER, GN, FR, GW, HT, IR, IQ, KR, LB, LR, LY, MM, NZ, NG, SL, SO, SD, SY, TM, UZ, VE, EH, YE, ZW BE, US, CA, CN, ID, PH, TG, NG, DO, MA, ZW, PR, TZ, TN, UG, BW, AO, AE BR, KR, IR, IQ, SY, JP, US US, CA, IL, KR, IR, MM, CU, SD, SY AF, CI, CU, IQ, IR, LY, MM, KR, SD, PR, US, AU, SY, DZ, JP, EC. US

All Index funds in more detail

You can compare Index Funds ratings, min deposits what the the broker offers, funding methods, platforms, spread types, customer support options, regulation and account types side by side.

We also have an indepth Top Index Funds for 2020 article further below. You can see it now by clicking here

We have listed top Index funds below.

Index Funds List

eToro
(4/5)
Min deposit : 200
eToro was established in 2006 and is used by over 12000000+ traders. 75% of retail investor accounts lose money when trading CFDs with this provider. eToro offers Stocks, Commodities, Forex, CFDs, Social Trading, Indices, Cryptocurrency

Funding methods

Bank transfer Credit Card Paypal

Platforms

Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC)
IC Markets
(4/5)
Min deposit : 200
IC Markets was established in 2007 and is used by over 60000+ traders. Losses can exceed deposits IC Markets offers Forex, CFDs, Spread Betting, Share dealing, Cryptocurrencies

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, MT5, Mirror Trader, ZuluTrade, Web Trader, cTrader, Mac

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Australian Securities and Investment Commission (ASIC), Financial Services Authority (FSA), Cyprus Securities and Exchange Commission (CySEC)
Trading212
(4/5)
Min deposit : 1
Trading 212 was established in 2006 and is used by over 14000000+ traders. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Trading 212 offers Stocks, Forex, Commodities, Indices

Funding methods

Bank transfer Credit Card Paypal

Platforms

Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Financial Conduct Authority (FCA), Financial Supervision Commission (FSC)
Roboforex
(4/5)
Min deposit : 1
Roboforex was established in 2009 and is used by over 10000+ traders. Losses can exceed deposits Roboforex offers Forex, CFDs

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, MT5, Mac, Web Trader, cTrader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Cyprus Securities and Exchange Commission (CySEC)
XTB
(4/5)
Min deposit : 0
XTB was established in 2002 and is used by over 200000+ traders. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. XTB offers Forex, CFDs, Cryptocurrency

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, Mirror Trader, Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Financial Conduct Authority (FCA), FCA number FRN 522157, Cyprus Securities and Exchange Commission (CySEC), CySEC Licence Number: 169/12, Comisión Nacional del Mercado de Valores, Komisja Nadzoru Finansowego
City Index
(4/5)
Min deposit : 25
City Index was established in 1983 and is used by over 14000+ traders. 74% of retail investor accounts lose money when trading CFDs with this provider City Index offers Forex, CFDs, Spread Betting

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Financial Conduct Authority (FCA), Australian Securities and Investment Commission (ASIC), Monetary Authority of Singapore (MAS)
Plus500
(4/5)
Min deposit : 100
Plus500 was established in 2008 and is used by over 15500+ traders. 76.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Plus500 offers CFDs


Plus500 offer a 100% Free and Unlimited Demo account 0 Commissions Tight Spreads

Funding methods

Bank transfer Credit Card Paypal

Platforms

Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Plus500UK Ltd authorized & regulated by the FCA (#509909), Plus500CY Ltd authorized & regulated by CySEC (#250/14), Plus500AU Pty Ltd (ACN 153301681), ASIC in Australia AFSL #417727, FMA in New Zealand, FSP #486026 and Authorised Financial Services Provider in South Africa FSP #47546
Pepperstone
(4/5)
Min deposit : 200
Pepperstone was established in 2010 and is used by over 10000+ traders. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78.6% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money Pepperstone offers Forex, CFDs, Social Trading

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, MT5, Mac, ZuluTrade, Web Trader, cTrader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Financial Conduct Authority (FCA), Australian Securities and Investment Commission (ASIC), Dubai Financial Services Authority (DFSA), Pepperstone Markets Limited is incorporated in The Bahamas (number 177174 B), Licensed by the Securities Commission of The Bahamas (SCB) number SIA-F217
XM
(4/5)
Min deposit : 5
XM was established in 2009 and is used by over 70000+ traders. Your capital is at risk XM offers Forex, CFDs

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, MT5, Mac, Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by International Financial Services Commission(IFSC), Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investment Commission (ASIC)
FXPrimus
(4/5)
Min deposit : 100
FXPrimus was established in 2009 and is used by over 10000+ traders. Losses can exceed deposits FXPrimus offers Forex, Social Trading

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, Mac, Mirror Trader, Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Cyprus Securities and Exchange Commission (CySEC), The markets in financial instruments directive (MiFID)
EasyMarkets
(4/5)
Min deposit : 100
easyMarkets was established in 2001 and is used by over 142500+ traders. Your capital is at risk easyMarkets offers CFD, Forex, Commodities, Indices, Shares, Crypto

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investment Commission (ASIC)