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Mutual Fund Education
Justin Kuepper Sep 11, 2014
In this article, we’ll take a look at the cheapest mutual funds for certain investment objectives, including country-specific, industry-specific, and asset-specific funds.
Be sure to see the 7 Questions to Ask When Buying a Mutual Fund
| Ticker | Fund Name | Annual Expense | Assets Managed |
|---|---|---|---|
| SWPPX | Schwab S&P 500 Index | 0.09% | $19.4B |
The Schwab S&P 500 Index (SWPPX), which tracks the total return of the S&P 500 Index®, is the cheapest S&P 500 mutual fund with an expense ratio of just 0.09% compared to the 1.16% category average, no load, no 12-b-1 fee, and a 2% contingent redemption fee on sales within 30 days. As of August 2014, the fund had approximately $19.4 billion in total assets with 504 holdings.
| Ticker | Fund Name | Annual Expense | Assets Managed |
|---|---|---|---|
| FFSMX | Fidelity Spartan Total Market Index Fund | 0.05% | $25B |
The Fidelity Spartan Total Market Index Fund (FFSMX), which provides low-cost comprehensive coverage of the U.S. stock market, is the cheapest total market index mutual fund with an expense ratio of just 0.05% compared to the 1.06% category average, no load, no 12-b-1 fee, and a 0.5% three-month redemption fee on sales within 90 days. As of August 2014, the fund has over $25 billion in assets.
| Ticker | Fund Name | Annual Expense | Assets Managed |
|---|---|---|---|
| FSIOX | Fidelity Series 1000 Value Index Fund | 0.05% | $1.8B |
The Fidelity Series 1000 Value Index Fund (FSIOX), which invests at least 80% of its assets in common stock included in the Russell 1000® Value Index, is the cheapest large-cap value mutual fund with an expense ratio of just 0.05% compared to the 1.14% category average, no load, no 12-b-1 fee, and no redemption fee on sales. As of August 2014, the fund has over $1.8 billion in assets.
| Ticker | Fund Name | Annual Expense | Assets Managed |
|---|---|---|---|
| VIGSX | Vanguard Growth Index Signal | 0.09% | $40.1B |
The Vanguard Growth Index Signal Fund (VIGSX), which offers cheap exposure to large-cap growth stocks, is the cheapest large cap growth mutual fund with an expense ratio of just 0.09% compared to the 1.2% category average, no load, no 12-b-1 fee, and no redemption fee on sales. As of August 2014, the fund has over $40.1 billion in assets under management.
| Ticker | Fund Name | Annual Expense | Assets Managed |
|---|---|---|---|
| FSCKX | Fidelity Spartan Mid Cap Index Advantage Fund | 0.08% | $712M |
The Fidelity Spartan Mid Cap Index Advantage Fund (FSCKX), which invests at least 80% of its assets in securities included in the Russell Midcap® Index, is the cheapest mid-cap mutual fund with an expense ratio of just 0.08% compared to the 1.18% category average, no load, no 12-b-1 fee, and a 0.75% redemption fee on sales within 30 days. As of August 2014, the fund has over $712 million in assets.
| Ticker | Fund Name | Annual Expense | Assets Managed |
|---|---|---|---|
| NSIDX | Northern Small Cap Index | 0.15% | $963M |
The Northern Small Cap Index Fund (NSIDX), which tracks the Russell 2000® Index, is the cheapest small-cap mutual fund with an expense ratio of just 0.15% compared to the 1.18% category average, no load, no 12-b-1 fee, and no redemption fee on sales. As of August 2014, the fund has over $936 million in assets. For an ETF alternative that tracks the Russell 2000, investors should look at IWM.
| Ticker | Fund Name | Annual Expense | Assets Managed |
|---|---|---|---|
| VGENX | Vanguard Energy Investor Shares | 0.38% | $13.4B |
The Vanguard Energy Investor Shares Fund (VGENX), which seeks long-term capital appreciation within energy equities, is the cheapest energy sector mutual fund with an expense ratio of just 0.38% compared to the 1.42% category average, no load, no 12-b-1 fee, and no redemption fee on sales. As of August 2014, the fund has over $13.4 billion in assets under management.
| Ticker | Fund Name | Annual Expense | Assets Managed |
|---|---|---|---|
| VGHCX | Vanguard Health Care Investor Shares | 0.35% | $39B |
The Vanguard Health Care Investor Shares Fund (VGHCX), which seeks long-term capital appreciation within health care equities, is the cheapest health care sector mutual fund with an expense ratio of just 0.35% compared to the 1.3% category average, no load, no 12-b-1 fee, and no redemption fee on sales. As of August 2014, the fund has over $39 billion in assets.
| Ticker | Fund Name | Annual Expense | Assets Managed |
|---|---|---|---|
| FSRBX | Fidelity Select Banking Portfolio | 0.8% | $594M |
The Fidelity Select Banking Portfolio Fund (FSRBX), which invests at least 80% of its assets in banking securities, is the cheapest financial sector mutual fund with an expense ratio of just 0.8% compared to the 1.53% category average, no load, no 12-b-1 fee, and a 0.75% redemption fee on sales within 30 days. As of August 2014, the fund has over $594 million in assets.
| Ticker | Fund Name | Annual Expense | Assets Managed |
|---|---|---|---|
| IGRIX | Voya Global Resources Portfolio | 0.64% | $777M |
The Voya Global Resources Portfolio Fund (IGRIX), which seeks capital appreciation in the natural resources sector, is the cheapest materials sector mutual fund with an expense ratio of just 0.64% compared to the 1.37% category average, no load, no 12-b-1 fee, and no three-month redemption fee on sales. As of August 2014, the fund has over $777 million in assets.
| Ticker | Fund Name | Annual Expense | Assets Managed |
|---|---|---|---|
| FSCSX | Fidelity Software and Computer Services Portfolio | 0.78% | $3B |
The Fidelity Software and Computer Services Portfolio Fund (FSCSX), which invests at least 80% of assets in securities of companies engaged in the research, design, production or distribution of software or information services, is the cheapest technology sector mutual fund with an expense ratio of just 0.78% compared to the 1.53% category average, no load, no 12-b-1 fee, and a 0.75% redemption fee on sales within 30 days. As of August 2014, the fund has over $3 billion in assets.
| Ticker | Fund Name | Annual Expense | Assets Managed |
|---|---|---|---|
| FSUTX | Fidelity Select Utilities Portfolio | 0.8% | $957M |
The Fidelity Select Utilities Portfolio Fund (FSUTX), which invests at least 80% of assets in the utilities industry, is the cheapest utilities sector mutual fund with an expense ratio of just 0.8% compared to the 1.4% category average, no load, no 12-b-1 fee, and a 0.75% redemption fee on sales within 30 days. As of August 2014, the fund has over $957 million in assets.
| Ticker | Fund Name | Annual Expense | Assets Managed |
|---|---|---|---|
| FSCPX | Fidelity Select Consumer Discretionary Portfolio | 0.81% | $778M |
The Fidelity Select Consumer Discretionary Portfolio Fund (FSCPX), which seeks capital appreciation in the consumer discretionary sector, is the cheapest consumer discretionary mutual fund with an expense ratio of just 0.81% compared to the 1.41% category average, no load, no 12-b-1 fee, and a 0.75% redemption fee on sales within 30 days. As of August 2014, the fund has over $778 million in assets.
| Ticker | Fund Name | Annual Expense | Assets Managed |
|---|---|---|---|
| FDFAX | Fidelity Select Consumer Staples Portfolio | 0.79% | $2.3B |
The Fidelity Select Consumer Staples Portfolio Fund (FDFAX), which seeks capital appreciation in consumer staples, is the cheapest consumer staples sector mutual fund with an expense ratio of just 0.79% compared to the 1.47% category average, no load, no 12-b-1 fee, and a 0.75% redemption fee on sales within 30 days. As of August 2014, the fund has over $2.3 billion in assets.
| Ticker | Fund Name | Annual Expense | Assets Managed |
|---|---|---|---|
| FCYIX | Fidelity Select Industrials Portfolio | 0.81% | $1.2B |
The Fidelity Select Industrials Portfolio Fund (FCYIX), which seeks capital appreciation by investing in industrials, is the cheapest industrial sector mutual fund with an expense ratio of just 0.81% compared to the 1.26% category average, no load, no 12-b-1 fee, and a 0.75% redemption fee on sales within 30 days. As of August 2014, the fund has over $1.2 billion in assets.
| Ticker | Fund Name | Annual Expense | Assets Managed |
|---|---|---|---|
| DCMSX | DFA Commodity Strategy I Fund | 0.34% | $1.1B |
The DFA Commodity Strategy I Fund (DCMSX), which invests in a broad basket of commodities, is the cheapest commodities mutual fund with an expense ratio of just 0.34% compared to the 1.24% category average, no load, no 12-b-1 fee, and no redemption fee. As of August 2014, the fund has over $1.1 billion in assets.
| Ticker | Fund Name | Annual Expense | Assets Managed |
|---|---|---|---|
| FPEMX | Fidelity Spartan Emerging Markets Index Investor Shares | 0.32% | $311M |
The Fidelity Spartan Emerging Markets Index Investor Shares Fund (FPEMX), which invests primarily in emerging market securities, is the cheapest emerging markets mutual fund with an expense ratio of just 0.32% compared to the 1.6% category average, no load, no 12-b-1 fee, and a 1.5% three-month redemption fee on sales within 90 days. As of August 2014, the fund has over $311 million in assets.
| Ticker | Fund Name | Annual Expense | Assets Managed |
|---|---|---|---|
| IHPIX | Voya Hang Seng Index Investor Shares | 0.76% | $134M |
The Voya Hang Seng Index Investor Shares Fund (IHPIX), which invests in Chinese equities, is the cheapest China-focused mutual fund with an expense ratio of just 0.76% compared to the 1.93% category average, no load, no 12-b-1 fee, and a no redemption fee on sales. As of August 2014, the fund has over $134 million in assets.
| Ticker | Fund Name | Annual Expense | Assets Managed |
|---|---|---|---|
| VPACX | Vanguard Pacific Stock Index Investor Shares | 0.26% | $5.6 |
The Vanguard Pacific Stock Index Investor Shares Fund (VPACX), which invests in the Asia-Pacific region, is the cheapest Asia-Pacific mutual fund with an expense ratio of just 0.26% compared to the 1.46% category average, no load, no 12-b-1 fee, and no redemption fee on sales. As of August 2014, the fund has over $5.6 billion in assets.
| Ticker | Fund Name | Annual Expense | Assets Managed |
|---|---|---|---|
| FLATX | Fidelity Latin America Fund | 1.03% | $1.2B |
The Fidelity Latin America Fund (FLATX), which invests at least 80% of assets in Latin American securities, is the cheapest Latin America-focused mutual fund with an expense ratio of just 1.03% compared to the 1.75% category average, no load, no 12-b-1 fee, and a 1.5% redemption fee on sales within 90 days. As of August 2014, the fund has over $1.2 billion in assets.
| Ticker | Fund Name | Annual Expense | Assets Managed |
|---|---|---|---|
| VEURX | Vanguard European Stock Index Investor Shares | 0.26% | $22.4B |
The Vanguard European Stock Index Investor Shares Fund (VEURX), which tracks major equity markets in Europe, is the cheapest European-focused mutual fund with an expense ratio of just 0.26% compared to the 1.89% category average, no load, no 12-b-1 fee, and no redemption fee on sales. As of August 2014, the fund has over $22.4 billion in assets under management.
| Ticker | Fund Name | Annual Expense | Assets Managed |
|---|---|---|---|
| VFICX | Vanguard Intermediate-term Investment Grade Investor Shares | 0.2% | $17.9B |
The Vanguard Intermediate-term Investment Grade Investor Shares Fund (VFICX), which aims to provide a moderate and sustainable level of current income from investment grade corporate bonds, is the cheapest corporate bond mutual fund with an expense ratio of just 0.2% compared to the 0.77% category average, no load, no 12-b-1 fee, and no redemption fee on sales. As of August 2014, the fund has over $17.9 billion in assets.
| Ticker | Fund Name | Annual Expense | Assets Managed |
|---|---|---|---|
| VWEHX | Vanguard High Yield Corporate Investor Shares | 0.23% | $17.2B |
The Vanguard High Yield Corporate Investor Shares Fund (VWEHC), which invests in high yield corporate bonds, is the cheapest junk bond focused mutual fund with an expense ratio of just 0.23% compared to the 1.04% category average, no load, no 12-b-1 fee, and no redemption fee on sales. As of August 2014, the fund has over $17.2 billion in assets.
| Ticker | Fund Name | Annual Expense | Assets Managed |
|---|---|---|---|
| VGOVX | Vanguard Emerging Markets Bond Index Investor Shares | 0.49% | $295.7M |
The Vanguard Emerging Markets Government Bond Index Investor Shares Fund (VGOVX), which invests in emerging market bonds, is the cheapest emerging market bond mutual fund with an expense ratio of just 0.49% compared to the 1.17% category average, no load, no 12-b-1 fee, and no redemption fee on sales. As of August 2014, the fund has over $295.7 million in assets.
| Ticker | Fund Name | Annual Expense | Assets Managed |
|---|---|---|---|
| FRXIX | Fidelity Spartan Real Estate Index Investor Shares | 0.25% | $310.7M |
The Fidelity Spartan Real Estate Index Investor Shares Fund (FRXIX), which invests in the U.S. real estate market, is the cheapest real estate focused mutual fund with an expense ratio of just 0.25% compared to the 1.37% category average, no load, no 12-b-1 fee, and a 0.75% redemption fee on sales within 90 days. As of August 2014, the fund has over $310.7 million in assets.
| Ticker | Fund Name | Annual Expense | Assets Managed |
|---|---|---|---|
| VHDYX | Vanguard High Yield Dividend Index Investor Shares | 0.19% | $12.2B |
The Vanguard High Dividend Yield Index Investor Shares Fund (VHDYX), which invests in U.S.-based high-yield dividend stocks, is the cheapest dividend focused mutual fund with an expense ratio of just 0.19% compared to the 1.14% category average, no load, no 12-b-1 fee, and no redemption fee on sales. As of August 2014, the fund has over $12.2 billion in assets.
| Ticker | Fund Name | Annual Expense | Assets Managed |
|---|---|---|---|
| VWITX | Vanguard Intermediate Term Tax Exempt Investor Shares | 0.2% | $37.9B |
The Vanguard Intermediate Term Tax Exempt Investor Shares Fund (VWITX), which invests in intermediate term municipal bonds, is the cheapest municipal bond focused mutual fund with an expense ratio of just 0.2% compared to the 0.81% category average, no load, no 12-b-1 fee, and no redemption fee on sales. As of August 2014, the fund has over $37.9 billion in assets.
| Ticker | Fund Name | Annual Expense | Assets Managed |
|---|---|---|---|
| FSIQZ | Fidelity Spartan inflation Protected Bond Index Investor Shares | 0.2% | $178.4M |
The Fidelity Spartan Inflation Protected Bond Index Fund (FSIQX), which invests in the U.S. inflation protected bonds, is the cheapest inflation protected bond mutual fund with an expense ratio of just 0.2% compared to the 0.8% category average, no load, no 12-b-1 fee, and no redemption fee on sales. As of August 2014, the fund has over $178.4 million in assets.
| Ticker | Fund Name | Annual Expense | Assets Managed |
|---|---|---|---|
| VMVFX | Vanguard Global Minimum Volatility Investor Shares | 0.3% | $414.9M |
The Vanguard Global Minimum Volatility Investor Shares Fund (VMVFX), which invests in global equities, is the cheapest global equities mutual fund with an expense ratio of just 0.3% compared to the 1.29% category average, no load, no 12-b-1 fee, and no redemption fee on sales. As of August 2014, the fund has over $414.9 million in assets.
Investors should carefully consider the fees associated with mutual funds – including expense ratios, management fees, 12-b-1 fees, and redemption fees – as these fees can quickly add up over time. While we’ve discussed the cheapest major mutual funds by category, investors can find detailed information regarding the fees for any mutual fund by looking at the fund’s prospectus.
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