Top 10 U.S.-listed index funds to watch in 2026

An index fund aims to mirror a market benchmark by holding the same securities the index tracks, rather than selecting stocks through active management. The 10 funds in this list cover a mix of asset types – from U.S. equity indices, including large caps tracked by State Street SPDR S&P 500 ETF Trust ($SPY), through to international equities, corporate bonds and real estate – with annual fees across the list running from 0.03% to 0.49%.

How we built this list: We selected these funds based on their industry or investment category and ordered them by assets under management. Prices are updated daily, and the list and supporting content are reviewed roughly every quarter. All data is sourced from Stake. This list isn't a recommendation and isn't ordered by suitability.

Past performance is not a reliable indicator of future performance.

Source: Stake market data. Figures in US$. Data updated as of 7 August 2026.

✅ Learn more: Top 10 U.S.-listed bond ETFs to watch in 2026→

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1. State Street SPDR S&P 500 ETF Trust ($SPY)

State Street SPDR S&P 500 ETF Trust (SPY) share price over the last year: started at US$635.92, ended at US$773.26, a change of +21.6%. Range over the period: high US$773.26, low US$631.97. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: US$773.26 · Daily: 0.6% · AUM: US$808.30B · MER: 0.09%

State Street SPDR S&P 500 ETF Trust ($SPY) aims to match both the price and yield performance of the S&P 500 Index, a benchmark covering large-cap U.S. equities. The portfolio holds substantially all of the index's component common stocks. Each position is weighted in accordance with the Trust Agreement, keeping the fund's composition closely aligned with the index.

That structure is designed to keep $SPY in line with the broad U.S. large-cap market rather than any individual stock or sector. The mandate covers yield performance alongside price returns, so the fund is intended to reflect dividend income as well as capital movement.

2. Vanguard Morningstar Total Stock Mkt Ix Fd ($VTI)

Vanguard Morningstar Total Stock Mkt Ix Fd (VTI) share price over the last year: started at US$312.31, ended at US$381.78, a change of +22.2%. Range over the period: high US$381.78, low US$311.68. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: US$381.78 · Daily: 0.7% · AUM: US$666.88B · MER: 0.03%

Built around the CRSP US Total Market Index, Vanguard Morningstar Total Stock Mkt Ix Fd ($VTI) aims to track the investment return of the overall U.S. stock market. The fund takes a passive indexing approach, holding a collection of securities intended to approximate the index rather than picking stocks through active management. When the index changes, the portfolio changes with it.

The CRSP US Total Market Index is designed to cover the breadth of U.S.-listed equities, so $VTI holds a wide range of companies across the market rather than concentrating on one segment. The passive structure means the fund's portfolio reflects the index's composition at any given time.

3. Vanguard Total Bond Market Index Fund ($BND)

Vanguard Total Bond Market Index Fund (BND) share price over the last year: started at US$73.47, ended at US$72.40, a change of −1.5%. Range over the period: high US$75.17, low US$72.15. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: US$72.40 · Daily: 0.2% · AUM: US$160.93B · MER: 0.03%

The Bloomberg U.S. Aggregate Float Adjusted Index covers a wide cross-section of U.S. fixed income, and Vanguard Total Bond Market Index Fund ($BND) is designed to track it. The index measures public, investment-grade, taxable bonds in the United States, all with maturities of more than one year. Holdings are weighted by market value, so the fund's composition is intended to shift as the U.S. bond market itself changes.

4. Vanguard Emerging Markets Stock Index Fund ($VWO)

Vanguard Emerging Markets Stock Index Fund (VWO) share price over the last year: started at US$50.63, ended at US$60.47, a change of +19.4%. Range over the period: high US$61.24, low US$50.63. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: US$60.47 · Daily: 0.9% · AUM: US$122.01B · MER: 0.07%

Emerging market equities cover stocks from companies in countries outside the developed world. Vanguard Emerging Markets Stock Index Fund ($VWO) aims to track the FTSE Emerging Markets All Cap China A Inclusion Index, which measures investment returns across those markets. The 'all cap' scope means the index covers companies across the size range, not just the largest names.

Rather than holding every constituent in the index outright, $VWO uses a sampling approach intended to closely mirror the index's composition while managing the practicalities of transacting across many different markets.

5. Invesco NASDAQ 100 ETF ($QQQM)

Invesco NASDAQ 100 ETF (QQQM) share price over the last year: started at US$235.83, ended at US$297.70, a change of +26.2%. Range over the period: high US$307.23, low US$229.87. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: US$297.70 · Daily: 1.2% · AUM: US$103.15B · MER: 0.15%

Invesco NASDAQ 100 ETF ($QQQM) is designed to track the NASDAQ 100 Index, which covers 100 of the largest non-financial companies listed on the Nasdaq Stock Market by market capitalisation. That includes both U.S.-domiciled and international companies, though the index is heavily concentrated in U.S. technology and growth-oriented businesses.

The fund aims to invest at least 90% of its assets directly in the securities that make up the index. Its MER is 0.15%.

6. iShares Russell 2000 ETF ($IWM)

iShares Russell 2000 ETF (IWM) share price over the last year: started at US$220.27, ended at US$301.56, a change of +36.9%. Range over the period: high US$301.71, low US$220.27. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: US$301.56 · Daily: 1.1% · AUM: US$81.62B · MER: 0.19%

The iShares Russell 2000 ETF ($IWM) aims to track the Russell 2000 Index, a benchmark covering the small-capitalisation segment of the U.S. equity market. Where large-cap funds concentrate on household names, $IWM is built around smaller U.S. companies – the kind that tend to be earlier in their growth cycles and more focused on the domestic economy.

The fund holds the component securities of the Russell 2000 Index directly, with a MER of 0.19%. That fee reflects the cost of maintaining exposure to around 2,000 smaller companies rather than a tighter, simpler index.

7. Vanguard FTSE All World ex US ETF ($VEU)

Vanguard FTSE All World ex US ETF (VEU) share price over the last year: started at US$68.27, ended at US$85.22, a change of +24.8%. Range over the period: high US$85.23, low US$68.27. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: US$85.22 · Daily: 1.0% · AUM: US$68.43B · MER: 0.05%

Vanguard FTSE All World ex US ETF ($VEU) is designed to track the FTSE All-World ex US Index, a benchmark covering stocks in developed and emerging markets outside the United States. The fund's mandate is intentionally broad – it aims to capture equity market returns across a wide range of countries, excluding only U.S.-listed companies.

With an MER of 0.05%, $VEU is a low-cost way to access international equity markets in a single fund. The portfolio holds a mix of developed and emerging market companies, so the geographic and sector composition can shift as the underlying index evolves.

8. State Street SPDR Dow Jones Indust Avg ETF Trust ($DIA)

State Street SPDR Dow Jones Indust Avg ETF Trust (DIA) share price over the last year: started at US$440.01, ended at US$539.62, a change of +22.6%. Range over the period: high US$542.81, low US$440.01. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: US$539.62 · Daily: 0.3% · AUM: US$48.22B · MER: 0.16%

State Street SPDR Dow Jones Industrial Average ETF Trust ($DIA) aims to match the price and yield performance of the Dow Jones Industrial Average, a benchmark covering a select group of large-cap U.S. companies. The fund holds the common stocks that make up the DJIA, with each position weighted in accordance with the Trust Agreement. When the index's own composition changes, $DIA's holdings change with it – the portfolio is constructed to stay aligned with whatever stocks the DJIA comprises at any given time.

9. Vanguard Real Estate Index Fund ($VNQ)

Vanguard Real Estate Index Fund (VNQ) share price over the last year: started at US$88.47, ended at US$98.43, a change of +11.3%. Range over the period: high US$100.95, low US$87.00. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: US$98.43 · Daily: 0.4% · AUM: US$39.25B · MER: 0.12%

Vanguard Real Estate Index Fund ($VNQ) is designed to track a benchmark index covering publicly traded equity real estate investment trusts (REITs) and other real estate-related investments. REITs are companies required to distribute most of their taxable income as dividends, which is why a fund built around them tends to carry a meaningful income component alongside any price movement.

$VNQ uses an indexing approach rather than active stock selection, aiming to mirror the performance of its benchmark rather than beat it. The fund's mandate describes the goal as a high level of income combined with moderate long-term capital appreciation – though how that plays out depends on the underlying holdings and market conditions at any given time.

The 0.12% annual fee applies to the fund's assets under management, and at that level it sits well below what most actively managed real estate funds charge.

10. iShares iBoxx $ High Yield Corporate Bond ETF ($HYG)

iShares iBoxx $ High Yield Corporate Bond ETF (HYG) share price over the last year: started at US$80.22, ended at US$79.61, a change of −0.8%. Range over the period: high US$81.32, low US$78.72. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: US$79.61 · Daily: 0.2% · AUM: US$17.89B · MER: 0.49%

High yield corporate bonds are issued by companies with below-investment-grade credit ratings, and they pay higher interest rates to reflect that elevated default risk. The iShares iBoxx $ High Yield Corporate Bond ETF ($HYG) is designed to track the Markit iBoxx USD Liquid High Yield Index, a benchmark that covers this segment of the US dollar-denominated corporate bond market.

The fund holds at least 90% of its assets in the index's component securities. It may also allocate up to 10% to certain futures. The 'liquid' in the index name signals that it focuses on more actively traded bonds rather than the full breadth of the high yield market.

➡️ What are the best Nasdaq ETFs to watch in 2026?→

Common questions

How do I invest in U.S. index funds in Australia?

You can buy U.S.-listed ETFs through a share trading platform that offers access to U.S. markets. The process works much like buying an ASX-listed share – search the ticker, place an order, and settle in USD. Most platforms convert currency at the time of the transaction, though some let you hold a USD balance to manage the conversion separately.

What are the key risks of U.S. index funds?

Equity index funds carry market risk: broad downturns pull the whole index lower, and funds tracking narrower indexes – like the Nasdaq 100's 100 largest non-financial listed companies – concentrate more heavily in specific sectors. Bond funds face interest rate risk, since prices tend to move inversely to rates; high-yield bond funds add credit risk from lower-rated issuers on top of that. Currency movement runs through every fund here too, since all ten are priced in USD and none are hedged back to AUD.

How does the AUD/USD exchange rate affect these investments?

Because these funds are priced and traded in USD, shifts in the AUD/USD rate feed directly into what Australian investors receive when converting returns to Australian dollars. A strengthening AUD reduces the AUD value of USD-denominated gains; a weakening AUD adds to them. None of the funds in this list are hedged back to AUD, so exchange rate movements flow through in full.

How do fees compare across these funds?

MERs run from 0.03% – shared by $VTI and $BND – to 0.49% for $HYG, with the other seven funds sitting between 0.05% and 0.19%. The fee is deducted from fund assets continuously, applying in up markets and down alike.

More resources

✅ Are these the best index funds to invest in? July [2026]→

✅ Top 10 Asia ETFs to watch in 2026→

✅ 10 U.S. High yield bond ETFs to watch in 2026→

Disclaimer

Past performance is not a reliable indicator of future performance. When you invest, your capital is at risk. You should consider your own investment objectives, financial situation, and particular needs before making an investment decision. The value of your investments can go down as well as up and you may receive back less than your original investment. As always, do your own research and consider seeking appropriate financial advice before investing.

This is not personal financial advice nor a recommendation to invest in the securities listed. Any advice provided by Stake is of general nature only and does not take into account your specific circumstances. Trading and volume data from the Stake investing platform is for reference purposes only, the investment choices of others may not be appropriate for your needs and is not a reliable indicator of performance.

Please refer to hellostake.com/pricing for the fees that apply. When you trade securities priced in another currency, currency conversion fees may apply and movements in the exchange rate may affect your returns.

Stake Desk

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This article combines AI and human review from our analysts to bring you accurate, informative investing content at speed. For questions or suggestions, contact stakedesk@stake.com.au.