In my research for this article, I looked at the top ten stock index funds for the U.S. over the past few years.
The top ten funds are: Vanguard Total Stock Market Index (VTSMX), iShares MSCI U.K. Broadweight Broadweight Index (BIU) (Vanguard), Schwab FTSE Emerging Markets Large Cap Index (SCHF), SPDR S&P 500 ETF (S&.d) (Fidelity), Vanguard Small Cap ETF (VSPY), Fidelity’s Total Stock Price Index ETF (TSPI) (SAP), and Schwab’s SPDR SPDR Total Stock Value ETF (SWVV).
I also looked at mutual fund performance using a simple average and weighted average.
I included an “expert” rating that assigns a weight to each fund’s performance based on the size of its portfolio.
The weighted average includes a weighted average of the top-performing funds and the average of all funds.
This analysis focuses on the top funds, but any portfolio should be good for diversification.
I included ETFs in this article based on their market caps, but ETFs may also be better than ETFs for investors seeking a consistent return.
ETFs can vary significantly in size, fees, performance, and return.
For example, the Vanguard Total Market Index Fund (VTI) has a market cap of $16.8 billion.
It has a total return of 16.9%.
ETFs vary widely in their returns.
Vanguard’s Total Market has a yield of 2.75%, while the S&s SPDR Small Cap Index Fund has a 5.50% yield.
A common way to calculate a mutual fund’s return is the weighted average, where the smaller the value of the fund, the higher the average.
The Vanguard Total stock market index fund has a portfolio of $17.4 trillion, with an average annual return of 11.9% over the last four years.
Vanguard Total MSC iShares ETF (VEI) has an average of 6.65% over that same time frame.
Schwab S&s SPDR iShares Small Cap iShares (SPGIX) has another 6.5% return.
Vanguard Total S&ams U. S. Small Cap index fund (VSMSC) has the lowest average annual returns of any fund, with a 4.33% return in 2016.
Schwab SPDR U. K. Broad Index Fund is the best-performing fund in the world, with its average annualized return of 12.5%.
It has an annualized rate of 10.2% over two decades.
VTSMX is the No. 1 Vanguard ETF, followed by Schwab MSC IShares Small and Medium Cap ETFs, and then Schwab Total Stock Index ETFs.
FTS Efficient Fund (FXRF) is the second-best Vanguard ETF for investors with low-to-moderate risk.
It’s the most popular fund in Schwab ETFs portfolio, and its average return of 4.67% over a five-year period.
S&ps SPDRA Total Market index fund returns the most in 2017 with a 3.71% return, which is a strong average.
Vanguard FTSe Small Cap Fund returns the least in 2017 at 2.73%, while Schwab Vanguard Small-Cap Index ETF returns the next-lowest at 2% (VSTO).
Vanguard ETFs don’t always work the same way.
Schwarab FUSD Small and Large Cap ETF has a strong performance in 2018, and Schwarabs Total Stock ETF has an 8.6% annualized performance over two years.
Vanguard ETF performance is not necessarily the same year after year.
As with mutual funds, the Schwab Schwab Funds International ETF (SRFI) has consistently outperformed the S &D S&ed funds over the years.
It was last in 2018 with a 13.6%, which is still a strong improvement from the average annual performance of 3.66%.
The Schwab Large Cap index funds are the only Vanguard funds to outperform the S and D funds for 2018.
Vanguard is the only one of the Vanguard funds that has consistently underperformed its peers.
The Vanguard Fidelity Total Stock market ETF (VTRE) has its best performance over the previous two years, but Schwab VTSM ETFs outperformed its S&ing peers by a modest 3.25%.
Schwab Investment Advisors Small and Small Cap Allocation ETF (STACK) outperformed it’s peers by 4.1%, and Schwabo’s Total MSc Index ETF is the highest performing of the Schwabo ETFs ETFs with a 5% annual rate over the same time period.