In this article, we will take a look at the 5 best low risk index funds to buy. To see more such funds, go directly to 11 Best Low Risk Index Funds to Buy.
5. Fidelity 500 Index (MUTF:FXAIX)
Fidelity 500 Index (MUTF:FXAIX) ranks 5th in our list of the best low risk index funds to buy now. Fidelity 500 Index invests at least 80% of assets in common stocks included in the S&P 500 Index. It’s a popular fund to have low risk exposure to the broader US market.
Fidelity 500 Index (MUTF:FXAIX) is up about 47% over the past five years.
Some notable holdings of the fund include Apple Inc. (NASDAQ:AAPL) and Microsoft Corporation (NASDAQ:MSFT)..
4. Vanguard Total Intl Stock Idx Fund (MUTF:VXUS)
While US stocks have outperformed international stocks over the past decade, data shows that if we zoom out, international stocks stand out as outperformers. Data from BlackRock, Inc. (NYSE:BLK) shows that international stocks have outperforms U.S. stocks during nearly half of all time periods over the last 50 years.
“With lower returns forecasted for U.S. stocks over the coming years, international stocks may be primed to outperform. Historically, international stocks outperformed 96% of the time when U.S. stocks returned less than 6% and 100% of the time when U.S. stocks returned less than 4%,” a report from BlackRock said.
In this backdrop, having exposure to international stocks via Vanguard Total Intl Stock Idx Fund (MUTF:VXUS)’s total international stock index fund would make sense for investors looking to hedge against risks in the domestic market. Over the past five years the fund has gained about 18%.
3. Fidelity ZERO Large Cap Index (MUTF:FNILX)
Fidelity ZERO Large Cap Index (MUTF:FNILX) gives you exposure to some of the biggest large-cap companies in the US. Large-cap stocks are usually low risk and are established companies with strong fundamentals. Some of the top holdings of this fund include Alphabet Inc. (NASDAQ:GOOG), Meta Platforms, Inc. (NASDAQ:META) and Exxon Mobil Corporation (NYSE:XOM).
2. Fidelity ZERO Total Market Index (MUTF:FZROX)
Fidelity ZERO Total Market Index (MUTF:FZROX) is one of the best low risk index funds to buy now. Fidelity ZERO Total Market Index (MUTF:FZROX) seeks to track the overall US market which gives investors exposure to some of the safest and biggest stocks in the market. Among the top holdings of the fund include Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT) and Amazon.com, Inc. (NASDAQ:AMZN).
1. Franklin Utilities Fund Class A (MUTF:FKUQX)
Utilities is one of the safest sectors in the market. Investors turn to utility stocks since they are less subject to the risks in case of broader market downturns. Franklin Utilities Fund Class A (MUTF:FKUQX) seeks to track the S&P 500 Utilities Index. Franklin Utilities Fund Class A (MUTF:FKUQX)’s top three holdings include NextEra Energy, Inc. (NYSE:NEE), The Southern Company (NYSE:SO) and Edison International (NYSE:EIX).
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