10 Best Low-Risk Index Funds to Buy Now

8. Vanguard S&P Small-Cap 600 Value Index Fund Institutional Shares (MUTF:VSMVX)

Expense Ratio: 0.030%

5-Year annualized Return as of July 29: 12.93%

Vanguard S&P Small-Cap 600 Value Index Fund Institutional Shares (MUTF:VSMVX) is one of the best low-risk index funds to buy now. The index fund targets investors seeking to diversify their investment portfolios by investing in small-cap stocks. That’s because it tracks the performance of the S&P SmallCap 600 Value Index.

The index fund features smaller-cap companies than most of its peers in the small value category. Likewise, the fund’s broader reach minimizes stock-specific risks. Consequently, the index fund measures the return of small capitalization value stocks. It relies on an indexing investment strategy to track the performance of the benchmark index.

Vanguard S&P Small-Cap 600 Value Index Fund Institutional Shares (MUTF:VSMVX) portfolio appears somewhat different from the average peer due to its smaller size and blend of stocks. Financial services stocks account for the largest share of the portfolio, at 20.73%, followed by Industrials at 15.21% and Consumer Cyclical at 14.65%. Technology stocks account for 12.86%. Over the past five years, the index fund has generated an annualized return of 13%.