Top Five Index Funds for Long-Term Investment Strategy

by | Apr 21, 2023 | Fidelity IRA

Top Five Index Funds for Long-Term Investment Strategy




In this video, we’ll go over the top 5 index funds available on Fidelity. These are the best index funds you can use in your long-term portfolio, and they require zero active management. The majority of my Roth IRA and 403b are invested in these funds because they give me the greatest diversification while also having a proven track record.

It should be noted though, there is always a risk of short-term volatility involved when investing in stocks and index funds. There is NO GUARANTEE what the stock market can do in the short term. In addition, past performance does not guarantee future returns.

Note – This video is for educational purposes only! If you have specific questions about your own finances, you should consult with a fiduciary before making any investment decisions….(read more)


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As an investor, you might be looking for long-term growth opportunities that offer stability and reliability. Index funds are a great investment option for those who want to diversify their portfolio while minimizing risks. Index funds track the performance of a specific market index, such as the S&P 500, and offer investors exposure to a broad range of companies with a single investment.

Here are the top 5 index funds you can buy and hold forever for long-term growth and stability:

1. Vanguard Total Stock Market Index Fund (VTSMX)

The Vanguard Total Stock Market Index Fund is one of the largest and most diverse index funds available, with over 3,500 holdings. The fund tracks the CRSP U.S. Total Market Index, which includes stocks of all sizes and sectors in the U.S. equity market. It offers investors exposure to large-cap stocks like Apple and Microsoft, as well as small-cap stocks like Zillow and Lululemon. This fund is a great option for investors who want to invest in the U.S. stock market as a whole.

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2. Vanguard S&P 500 Index Fund (VFINX)

The Vanguard S&P 500 Index Fund tracks the performance of the most widely watched index in the world, the S&P 500. With over $500 billion in assets under management, this fund invests in the largest and most well-established companies in the U.S. equity market, such as Amazon, Facebook, and Johnson & Johnson. This fund is a good option for investors who want to invest in large, blue-chip companies and gain exposure to the overall health of the U.S. economy.

3. iShares Russell 2000 Index Fund (IWM)

The iShares Russell 2000 Index Fund tracks the performance of the small-cap Russell 2000 Index, which includes 2,000 small-cap companies in the U.S. equity market. This fund offers investors exposure to small-cap stocks, which can potentially provide higher returns than large-cap stocks over the long term. This fund is a good option for investors who want to invest in small-cap companies and potentially gain higher returns.

4. Vanguard Total International Stock Index Fund (VGTSX)

The Vanguard Total International Stock Index Fund tracks the performance of the FTSE Global All Cap ex US Index, which includes over 7,000 international stocks from both developed and emerging markets. This fund offers investors exposure to international stocks and provides diversification outside of the U.S. equity market. This fund is a good option for investors who want to invest in international stocks and potentially gain higher returns.

5. Schwab U.S. Dividend Equity ETF (SCHD)

The Schwab U.S. Dividend Equity ETF invests in U.S. stocks that pay consistent and reliable dividends. The fund tracks the Dow Jones U.S. Dividend 100 Index, which includes 100 large-cap U.S. stocks that have a consistent history of paying dividends. This fund is a good option for investors who want to invest in stocks that pay dividends and potentially generate income over time.

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Overall, index funds offer investors a simple and effective way to diversify their portfolio while minimizing risks. With their low fees and broad exposure to the market, index funds are a great option for investors who want to buy and hold for the long term. By investing in the top 5 index funds, you can potentially gain exposure to the U.S. and international markets, large-cap and small-cap stocks, and stocks that pay dividends.

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