FORTUNE Investor's Guide 2010
The wide world of index funds
Select from our sampling of the largest passive portfolios that track either U.S., foreign, or specialty markets.
Broad U.S.
Start here -- with a mutual fund or an exchange-traded fund that tracks a wide swath of the market. Many of these funds also have versions that include only growth or value stocks.
| Fund Name/Ticker | 2009 Return1 | Assets (Billions) | Annual Expenses | Minimum initial investment | Index tracked |
|---|---|---|---|---|---|
| Fidelity Spartan Total Market FSTMX | 26.80% | $8.50 | 0.10% | $10,000 | Dow Jones U.S. Total Stock Market |
| Vanguard Total Stock Market VTSMX | 27.10% | $108.80 | 0.16% | $3,000 | MSCI U.S. Broad Market |
| Fidelity Spartan 500 Index Inv. FSMKX | 25.50% | $12.90 | 0.10% | $10,000 | Standard & Poor's 500 |
| iShares S&P 500 Index2 IVV | 25.50% | $21.60 | 0.09% | N.A. | Standard & Poor's 500 |
| Schwab S&P 500 Index Select SWPPX | 25.30% | $8.70 | 0.19%4 | $100 | Standard & Poor's 500 |
| SPDRs2 SPY | 25.30% | $77.20 | 0.09% | N.A. | Standard & Poor's 500 |
| T. Rowe Price Equity Index 500 PREIX | 25.30% | $10.40 | 0.35% | $2,500 | Standard & Poor's 500 |
| Vanguard 500 Index Investor VFINX | 25.50% | $87.30 | 0.16% | $3,000 | Standard & Poor's 500 |
| iShares Russell 1000 Index2 IWB | 27.00% | $5.10 | 0.15% | N.A. | Russell 1000 |
| iShares Russell 3000 Index2 IWV | 26.60% | $3.10 | 0.20% | N.A. | Russell 3000 |
| PowerShares QQQ2 QQQQ | 49.90% | $17.00 | 0.20% | N.A. | Nasdaq 100 |
| PowerShares FTSE RAFI U.S. 10002 PRF | 42.00% | $0.50 | 0.58% | N.A. | FTSE RAFI U.S. 1000 |
| Vanguard Extended Market VEXMX | 32.50% | $11.30 | 0.25% | $3,000 | Standard & Poor's Completion |
Foreign Fund
These portfolios give you the world in one basket. But you can also buy funds that focus on particular regions and individual countries, as well as different sizes of stocks.
| Fund Name/Ticker | 2009 Return1 | Assets (Billions) | Annual Expenses | Minimum initial investment | Index tracked |
|---|---|---|---|---|---|
| Vanguard Total Intl. Stock VGTSX | 39.20% | $24.30 | 0.03% | $3,000 | Total International Composite |
| Fidelity Spartan International FSIIX | 31.10% | $6.80 | 0.10% | $10,000 | MSCI Europe, Australasia, Far East |
| iShares MSCI EAFE2 EFA | 33.70% | $36.10 | 0.35% | N.A. | MSCI Europe, Australasia, Far East |
| Van. FTSE All-World ex-U.S. Small2 VSS | 60.4%3 | $0.30 | N.A. | N.A. | FTSE Global Small Cap ex-U.S. |
| iShares MSCI Emerg. Markets2 EEM | 70.80% | $38.20 | 0.72% | N.A. | MSCI Emerging Markets |
| Schwab Fundamental Emer. Mkts. SFENX | 73.30% | $0.10 | 0.61% | $100 | FTSE RAFI Emerging |
| Vanguard Emerging Mkts. Stock VEIEX | 75.60% | $27.40 | 0.32% | $3,000 | MSCI Emerging Markets |
Specialty Funds
You can use specialty funds to fine-tune your portfolio, or bet on whole sectors rather
than specific stocks. Here's a selection of some of the larger exchange-traded funds that focus on everything from consumer goods to base metals to currencies.
| Fund Name/Ticker | 2009 Return1 | Assets (Billions) | Annual Expenses | Index tracked |
|---|---|---|---|---|
| Market Vectors Agribusiness ETF MOO | 47.70% | $1.60 | 0.58% | DAXglobal Agribusiness index |
| PowerShares DB Agriculture DBA | 0.60% | $2.30 | 0.75% | DB Liquid Commodity Index–Diver. Agriculture Excess Return |
| iPath Dow Jones–AIG Commodity Idx. DJP | 16.00% | $2.00 | 0.75% | Dow Jones–UBS CommodityIndex Total Return |
| iShares Silver Trust SLV | 63.70% | $5.00 | 0.50% | Silver bullion |
| PowerShares DB Base Metals DBB | 72.40% | $0.50 | 0.75% | DB Liquid Commodity Index–Opt. Yield Ind. Metals Excess Return |
| PowerShares DB Commod. Idx. Track. DBC | 14.50% | $4.10 | 0.75% | DB Liquid Commodity Index–Optimum Yield Diver. Excess Return |
| SPDR Gold Shares GLD | 30.20% | $39.50 | 0.40% | Gold bullion |
| Consumer Discret. Select Sector SPDR XLY | 38.90% | $1.40 | 0.22% | Consumer Discretionary Select Sector index |
| Consumer Staples Select Sector SPDR XLP | 15.20% | $2.20 | 0.22% | Consumer Staples Select Sector index |
| PowerShares DB U.S. Dollar Bearish UDN | 9.50% | $0.40 | 0.57% | Deutsche Bank Short U.S. Dollar index |
| PowerShares DB U.S. Dollar Bullish UUP | -10.20% | $1.20 | 0.58% | Deutsche Bank Long U.S. Dollar index |
| Energy Select Sector SPDR XLE | 24.80% | $6.00 | 0.22% | Energy Select Sector index |
| Vanguard Energy ETF VDE | 24.50% | $1.10 | 0.20% | MSCI U.S. Investable Market Energy index |
| United States Natural Gas UNG | -60.90% | $3.40 | 0.60% | Price of natural gas as delivered at the Henry Hub in Erath, La. |
| United States Oil Fund LP USO | 17.50% | $2.10 | 0.45% | Movements of light, sweet crude oil delivered to Cushing, Okla. |
| Financial Select Sector SPDR XLF | 20.80% | $6.50 | 0.22% | Financial Select Sector index |
| Health Care Select Sector SPDR XLV | 15.40% | $2.20 | 0.22% | Health Care Select Sector index |
| iShares Nasdaq Biotechnology IBB | 12.50% | $1.40 | 0.48% | Nasdaq Biotechnology index |
| iShares Dow Jones U.S. Healthcare IYH | 16.60% | $0.60 | 0.48% | Dow Jones U.S. Health Care index |
| Industrial Select Sector SPDR XLI | 22.90% | $2.10 | 0.22% | Industrial Select Sector index |
| iShares S&P Global Infrastructure IGF | 22.00% | $0.40 | 0.48% | Standard & Poor's Global Infrastructure index |
| Materials Select Sector SPDR XLB | 46.40% | $1.80 | 0.22% | Materials Select Sector index |
| iShares S&P N. Amer. Nat. Resources IGE | 39.20% | $1.60 | 0.48% | Standard & Poor's N. American Natural Resources Sector index |
| PowerShares Water Resources Port. PHO | 16.30% | $1.40 | 0.64% | Palisades Water index |
| iShares S&P U.S. Preferred Stock Index PFF | 31.50% | $2.80 | 0.48% | Standard & Poor's U.S.Preferred Stock index |
| iShares Cohen & Steers Realty Majors ICF | 19.70% | $1.70 | 0.35% | Cohen & Steers Realty Majors index |
| iShares Dow Jones U.S. Real Estate IYR | 23.70% | $2.90 | 0.48% | Dow Jones U.S. Real Estate index |
| SPDR Dow Jones Intl. Real Estate RWX | 43.30% | $1.00 | 0.59% | Dow Jones Global ex-U.S. Select Real Estate Securities index |
| Vanguard REIT ETF VNQ | 20.60% | $4.00 | 0.11% | Morgan Stanley Capital International U.S. REIT index |
| iShares Dow Jones U.S. Technology IYW | 57.60% | $1.30 | 0.48% | Dow Jones U.S. Technology index |
| iShares Dow Jones U.S. Telecom IYZ | 14.20% | $0.50 | 0.48% | Dow Jones U.S. Select Telecommunications index |
| Technology Select Sector SPDR XLK | 45.30% | $3.90 | 0.22% | Technology Select Sector index |
| Utilities Select Sector SPDR XLU | 5.50% | $2.30 | 0.22% | Utilities Select Sector Index |
N.A. Not applicable.
1 Through Nov. 16.
2 Exchange-traded fund; no minimum investment, but brokerage fees apply.
3 Returns from inception in April through Nov. 16.
4 The annual expenses cited were derived from the most recent annual reports. The annual expenses on the Schwab S&P 500 Index Select fund have since been cut to .09%.
1 Through Nov. 16.
2 Exchange-traded fund; no minimum investment, but brokerage fees apply.
3 Returns from inception in April through Nov. 16.
4 The annual expenses cited were derived from the most recent annual reports. The annual expenses on the Schwab S&P 500 Index Select fund have since been cut to .09%.
