The 3 Best Index Funds for 2024

Jason Williams

Posted June 6, 2024

Dear Reader,

I’ve learned a lot throughout both my years on Wall Street and my years helping retail investors. But one thing that really stuck out early is that every investor is different. Everyone has different goals and different needs. And that’s a great thing. We should celebrate our individuality. It’s also not a problem when it comes to earning profits. Because another thing I’ve learned is that there’s an investment for every investor. And today, I want to take a break from talking about individual stocks to cover another type of investment that can help even the most passive, risk-averse investor score market-beating gains: the best index funds.

best index funds 2024

Because the best index funds offer an alternative to investors put off by either the risk or the extra effort involved with researching and buying individual stocks. And they’re a pretty good alternative when you get right down to it. The best index funds offer diversification while also allowing focus on specific industries and trends. And because of that diversification, the best index funds also offer slightly lower risk profiles for more risk-averse investors. But because the best index funds allow investors to ride long-term trends with ease, they also offer outsized profit potential. So with that being said, let’s talk about the three best index funds in 2024…

The Best Index Funds for 2024: Real Estate

Now, if you’ve been reading my commentary for even a few months, you already know that I’m a HUGE fan of real estate. It’s a great way for investors to set up passive income streams based on assets that appreciate with inflation. It’s also one of my top four investments for the next decade as inflation likely sticks around and interest rates swing up and down as the Fed tries to balance rising prices with a slowing economy. And it’s also making an appearance on my list of the best index funds for 2024. That’s because if my theory continues to play out as it has over the past three years, real estate is only going to go up over the long term.

best index funds 2024 real estate

And while there are a lot of great index funds for real estate investors, my top pick for this list of the best index funds in 2024 is without a doubt the Vanguard Real Estate Index Fund ETF (NYSE: VNQ). Shares cost around $80 each. But they make up for the higher price tag with an industry-low expense ratio of only 0.12%. And they pay investors an annual 4% yield through quarterly dividend payments. But that’s only part of the reason this is one of the best index funds for 2024. The assets it gives you exposure to are the other reason. This fund invests in the best real estate investment trusts (REITs) in the country. And it shares the profits and proceeds from those investments with shareholders. It’s bound to benefit as inflation sticks around. It’ll pay you an extra annual salary if you own enough shares. And that’ll help you pay for things as inflation makes them more expensive or buy more shares if you’re already comfortable.

The Best Index Funds for 2024: Real Assets

Continuing my theme of things that start with the word “real,” let’s talk about the best index funds for 2024 that invest in real things. Because over the next 10 years, the companies and industries that “make things and own stuff” are going to be some of the best investments investors can make. And the best index funds for 2024 have to include one fund dedicated to real assets. And when it comes to real assets that are the most likely to bring the biggest profits, energy infrastructure is where investors need to look. That’s the pipelines, refineries, retail stations, electric grids, power stations, storage facilities, and more that keep the power coming from where it’s produced to where we use it. And there are some great options for investors looking for the best index funds for 2024 here, too.

best index funds 2024 real assets

But when it comes to the absolute best of the best energy infrastructure index funds, you need to look at the Alerian Energy Infrastructure ETF (NYSE: ENFR). It’s very affordable for investors of any income level, with a price tag of around $25. And it pays out an industry-leading 5% annual dividend to investors as it shares the profits that come from investing in the best infrastructure in the world. It also sports a low expense ratio of 0.35% that will ensure you keep more of the profits for yourself. And that’s what makes this one of the best index funds for 2024.

The Best Index Funds for 2024: More Real Stuff

Look, when it comes down to it, the government and the Federal Reserve have painted a pretty clear picture of what’s in store for the next decade: slow growth and sticky inflation. It’s not something we have to like, but it’s something we’re going to have to deal with (or tolerate). And it is something we can profit from if we invest accordingly now. And that’s why the third entry in my list of the best index funds for 2024 is another fund that gives exposure to real stuff and actual things. Simply put: When inflation cuts into purchasing power, it makes things and stuff priced in dollars cost more dollars. So if you buy the companies that make the things and own the stuff now, you’ll see your investment grow more and more profitable thanks to that sticky inflation.

best index funds 2024 materials

So the final entry in my list of the three best index funds for 2024 is one that gives investors exposure to the materials that keep our global economy humming. I’m talking about agricultural inputs like fertilizer and building materials like lumber and paint. I’m also talking about raw materials like copper, aluminum, steel, and even precious metals like gold and silver. All of these things benefit from rising prices and weaker dollars. And the best index fund for investors to play that is likely the Fidelity MSCI Materials Index Fund ETF (NYSE: FMAT). It costs about $50 a share. But it sports one of the lowest expense ratios out of any index fund at a mere 0.08%. Now, it “only” pays investors about a 2% yield right now. But as its investments in those materials grow in value, so will the share price and that quarterly payout. And that’s what’s earned the FMAT ETF a place on my list of the best index funds for 2024.

The Bottom Line

The bottom line here is that there is an investment out there for every investor. And there’s an investment for every strategy. There’s an investment in every market. And there’s always an investment that will help you beat those markets when all is said and done. You just have to know where to look and what to look for. And whether you’re looking for the best index funds for 2024 (or any year, for that matter) or you’re looking for the next big investment the mainstream hasn’t learned about yet… You’re already looking in the right place.

Because here at Wealth Daily, we pride ourselves on not only being on top of the biggest current investment trends, but also being ahead of the crowd. It’s how we identified the potential in Bitcoin before it hit $100 a coin. And it’s how we spotted Nvidia back when it still cost less than $30 (it’s nearly $1,200 today). It’s also how we got in early on the cannabis craze, cloud computing, software as a service (SaaS), and even psychedelics. And it’s why investors who followed our advice scored blockbuster gains of 1,000% or more on every single one of those trends.

No matter what you’re looking for, if it’s got anything to do with investments and profits, you’re going to find it here at Wealth Daily. So make sure you are getting our emails, keep coming back every day, get engaged in our Discord, watch our videos, and check in on the app, too. My colleagues and I will be there to help you stay a step ahead of the pack so you can claim some of those fairy-tale gains.

To your wealth,

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Jason Williams

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After graduating Cum Laude in finance and economics, Jason designed and analyzed complex projects for the U.S. Army. He made the jump to the private sector as an investment banking analyst at Morgan Stanley, where he eventually led his own team responsible for billions of dollars in daily trading. Jason left Wall Street to found his own investment office and now shares the strategies he used and the network he built with you. Jason is the founder of Main Street Ventures, a pre-IPO investment newsletter; the founder of Future Giants, a nano cap investing service; and authors The Wealth Advisory income stock newsletter. He is also the managing editor of Wealth Daily. To learn more about Jason, click here.

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