10 Best Low-Risk Index Funds to Buy Now

2. Schwab S&P 500 Index Fund (MUTF:SWPPX)

Expense Ratio: 0.020%

5-Year annualized Return as of July 29: 16.43%

The Schwab S&P 500 Index Fund (MUTF:SWPPX) is one of the best low-risk index funds to buy now, with a low expense ratio of 0.020%. It is an index fund designed to track the performance of the S&P 500. It invests at least 80% of its assets in the stocks of the 500 leading publicly traded companies, giving each stock the same weight as the index.

Consequently, it boasts one of the most diversified investment portfolios. While technology stocks account for 34% of the portfolio, financial services come in second at 13.67% followed by Consumer Cyclical at 10.54% and Communication Services at 9.79%.

Some of the index fund’s most significant holdings include Nvidia, Microsoft, Apple, Amazon, and Meta Platforms. Over the past five years, Schwab S&P 500 Index Fund (MUTF:SWPPX) has generated an annualized return of 16.43%.