Technology
Most Popular ETFs - Index Funds
Most Popular ETFs - Index Funds Overview
Index ETFs, commonly called efts index funds, have become the default choice for millions of investors building long-term portfolios. These exchange-traded funds track major market indexes and have seen enormous growth in assets and popularity. This ranking covers the most widely held and traded index-tracking ETFs, organized by market segment. Data comes from Morningstar and ETF.com as of April 2026.
ETF vs. Index Mutual Fund - What’s the Difference?
Both track a market index, but an ETF trades on an exchange throughout the day like a stock while an index mutual fund prices once per day after the market closes. Both offer broad diversification and low costs, though ETFs often have slightly lower expense ratios on average.
Top U.S. Market-Cap Index ETFs
| Fund | Ticker | Tracks | Expense Ratio | AUM |
|---|---|---|---|---|
| Vanguard S&P 500 ETF | VOO | S&P 500 | 0.03% | $1.4T |
| iShares Core S&P 500 ETF | IVV | S&P 500 | 0.03% | $840B |
| SPDR S&P 500 ETF Trust | SPY | S&P 500 | 0.09% | $560B |
| Vanguard Total Stock Market ETF | VTI | CRSP U.S. Total Market | 0.03% | $520B |
| Invesco QQQ Trust | QQQ | Nasdaq-100 | 0.20% | $310B |
VOO - Vanguard S&P 500 ETF
At $1.4 trillion in assets, VOO is the largest S&P 500 ETF. Its 0.03% expense ratio has made it a top choice for cost-conscious investors since launching in 2010.
IVV - iShares Core S&P 500 ETF
IVV tracks the S&P 500 at the same 0.03% expense ratio as VOO. Run by BlackRock, it ranks among the most liquid ETFs globally.
SPY - SPDR S&P 500 ETF Trust
SPY launched in 1993 as the first U.S. ETF. It charges 0.09%, triple the rate of VOO or IVV, but its deep liquidity makes it the standard choice for institutional traders moving large positions fast.
VTI - Vanguard Total Stock Market ETF
VTI covers roughly 4,000 U.S. stocks including small-cap and mid-cap companies, not just the S&P 500. With $520 billion in assets and a 0.03% expense ratio, it works as a single core holding for broad U.S. market exposure.
QQQ - Invesco QQQ Trust
QQQ tracks the 100 largest non-financial companies on the Nasdaq, heavily weighted toward Apple, Microsoft, Nvidia, and Amazon. The 0.20% expense ratio buys concentrated tech exposure.
Top International Index ETFs
| Fund | Ticker | Tracks | Expense Ratio | AUM |
|---|---|---|---|---|
| Vanguard FTSE Developed Markets ETF | VEA | FTSE Developed ex-US | 0.05% | $260B |
| Vanguard Total International Stock ETF | VXUS | FTSE Global ex US | 0.07% | $180B |
| iShares Core MSCI EAFE ETF | IEFA | MSCI EAFE | 0.07% | $132B |
| Vanguard FTSE Emerging Markets ETF | VWO | FTSE Emerging | 0.08% | $89B |
VEA - Vanguard FTSE Developed Markets ETF
VEA covers large and mid-cap companies in Japan, the UK, Canada, France, and Germany at a 0.05% expense ratio. With $260 billion in assets, it does not include emerging markets such as India or Brazil.
VXUS - Vanguard Total International Stock ETF
VXUS holds over 8,000 stocks across roughly 45 countries, covering both developed and emerging markets outside the United States at a 0.07% expense ratio.
IEFA - iShares Core MSCI EAFE ETF
IEFA covers developed market stocks in Europe, Australasia, and the Far East at a 0.07% expense ratio. With $132 billion in assets, it gives slightly more exposure to European markets than VEA.
VWO - Vanguard FTSE Emerging Markets ETF
VWO covers China, India, Brazil, Taiwan, and South Africa through the FTSE Emerging Markets index. Emerging markets carry more political and currency risk, but VWO remains the largest emerging markets ETF at 0.08% expense ratio.
Top Sector Index ETFs
| Fund | Ticker | Tracks | Expense Ratio | AUM |
|---|---|---|---|---|
| Financial Select Sector SPDR Fund | XLF | Financial Select Sector | 0.10% | $45B |
| Energy Select Sector SPDR Fund | XLE | Energy Select Sector | 0.13% | $36B |
| Vanguard Information Technology ETF | VGT | MSCI US IMI | 0.10% | $70B |
| Industrial Select Sector SPDR Fund | XLI | Industrial Select Sector | 0.10% | $27B |
XLF - Financial Select Sector SPDR Fund
XLF covers U.S. banks, insurers, asset managers, and REITs. With $45 billion in assets and a 0.10% expense ratio, it adds targeted financial sector exposure without picking individual bank stocks.
XLE - Energy Select Sector SPDR Fund
XLE covers U.S. energy companies including ExxonMobil and Chevron. The sector has been volatile over the past decade and charges 0.13%, higher than most broad market ETFs, but XLE remains the most liquid energy ETF available.
VGT - Vanguard Information Technology ETF
VGT tracks the MSCI U.S. IMI Information Technology Index, covering software, hardware, semiconductors, and IT services. At $70 billion in assets and 0.10% expense ratio, it is the largest sector ETF in this ranking.
XLI - Industrial Select Sector SPDR Fund
XLI covers aerospace, defense, construction, logistics, and manufacturing, including Boeing, Caterpillar, and Union Pacific. Industrials tend to rise during economic growth periods, letting investors play that sensitivity at a 0.10% expense ratio without picking individual stocks.
Top Dividend Index ETFs
| Fund | Ticker | Tracks | Expense Ratio | AUM | Dividend Yield |
|---|---|---|---|---|---|
| Schwab U.S. Dividend Equity ETF | SCHD | Dow Jones U.S. Dividend | 0.06% | $75B | 3.4% |
| Vanguard Dividend Appreciation ETF | VIG | S&P 500 Dividend Growth | 0.06% | $105B | 1.7% |
| SmartETFs Dividend Builder ETF | SDOG | S&P 500 Smart Dividends | 0.40% | $1.2B | 3.0% |
SCHD - Schwab U.S. Dividend Equity ETF
SCHD selects U.S. companies that have paid and increased dividends for at least 10 consecutive years, weighted by fundamental metrics rather than market cap. Its 3.4% dividend yield is well above the S&P 500 average, and the 0.06% expense ratio keeps costs minimal.
VIG - Vanguard Dividend Appreciation ETF
VIG requires 10 consecutive years of dividend increases before including a company. The 1.7% yield is lower than SCHD, but the focus is on companies that keep raising payouts over time.
SDOG - SmartETFs Dividend Builder ETF
SDOG weights dividend stocks equally rather than by market cap, tracking the S&P 500 Smart Dividends index. Its 3.0% dividend yield is competitive, though the 0.40% expense ratio is notably higher than SCHD or VIG.
How to Choose an Index ETF
Check the expense ratio. This is the annual cost as a percentage of your investment. VOO and IVV charge 0.03% per year. SPY charges 0.09%. Over 20 years, that gap compounds meaningfully.
Know what the index actually holds. QQQ and VTI both cover U.S. stocks, but QQQ is heavily concentrated in technology while VTI is broad.
Consider fund size and age. Larger funds tend to be more stable and liquid. VOO, SPY, and VTI have multi-decade track records. Newer or smaller ETFs may carry higher risk of closure.
What Makes Index ETFs Different From Active Funds?
Most mutual funds are actively managed, meaning a professional decides which stocks to buy and sell. Index ETFs simply hold the stocks that make up a market index and make no attempt to beat it. Without active management costs, index ETFs typically charge much lower expense ratios. Over long periods, most active managers underperform their benchmark index after fees.
Final Takeaway
Index ETFs now account for the majority of new investment money flowing into U.S. markets, and expense ratios across the industry continue to fall as competition intensifies. For most investors, a simple portfolio of two or three broad index ETFs covering U.S. stocks, international stocks, and bonds is enough to track market returns at a very low cost.