---
title: 'Money 50: The World’s Best Mutual Funds and ETFs'
description: You can use this list of mutual and exchange-traded funds to construct a portfolio that's built to last.
authors:
  - name: Taylor Tepper
    url: https://money.com/author/taylor-tepper-3/
    at_money_since: 2013
    articles: 168
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    social:
      - https://x.com/TaylorTepper
    former_staff: true
published: '2016-01-04T15:54:50.000Z'
modified: '2020-07-07T10:54:32.000Z'
section: Investing
tags:
  - ETFs
  - funds
  - mutual funds
  - stocks
word_count: 1346
canonical: https://money.com/money-50-best-mutual-funds-etfs-2016/
type: Article
source: structured-blocks
---

> **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/).

![150104_MYF01](https://img.money.com/2015/12/150104_myf01.jpg)

As the go-nowhere market of 2015 winds down, you're probably feeling disappointed by the returns of your fund portfolio. The typical core stock fund delivered double-digit returns for three years running, but was on track to close December flat for the year. Bond returns also stalled.

At times like these it's important to remember that staying the course is still a winning strategy. That's the guiding philosophy behind the Money 50, our list of the best mutual and exchange-traded funds (ETFs). We refuse to chase after chart-topping performers, which typically fizzle out. Instead, we favor Steady Eddie funds, which are more likely to give you solid returns over the long term. History shows that this approach is the surest way to reach your financial goals.

Since the Money 50 list is built to last, you can expect few changes from year to year. But this time around we made a major tweak: We added three tilted index ETFs, better known as smart-beta funds, which enable you to lean more heavily toward particular investing styles at a lower cost than hiring an active manager. To make room, we dropped three lagging actively managed funds.

Still, the Money 50 mostly remains the same. The core of our list is the building-block category—14 index funds or ETFs that mirror market benchmarks. These funds should make up the bulk, or all, of your portfolio. We also have a one-decision option, which provides broad diversification in a single fund. And we include a select group of active funds run by long-tenured managers. As always, all the funds are low cost, which gives you the best shot at the returns you need to meet your goals.

For help with some of the lingo, you'll find a glossary below the tables.

Herewith, the 50 best mutual and exchange-traded funds for 2016.

<table style="width:100%;border-top:1px solid black;border-bottom:none;border-right:none;border-left:none"><tbody><tr><td style="line-height:1.2;width:100%;font:Arial;text-align:left;font-size:22px;padding:12px padding-bottom:-20px;padding-top:20px;border:none"><span><strong>Building-Block Funds</strong></span><br>These funds and ETFs, which offer you exposure to big chunks of both the U.S. and foreign stock and bond markets, should be used for the core part of your port­folio that you’ll hold for years. Because you’re seeking broad market exposure, low-cost ­diversified index funds are your best bet.</td></tr></tbody></table>

| Large-Cap | Style | Ann. Expenses | Total Return in 2015 | 5 year Ann. Return | Min. Inital Investment |
| --- | --- | --- | --- | --- | --- |
| [Schwab S&P 500 Index](http://fortune.com/mutual-fund/SWPPX/) (SWPPX) | Blend | 0.09% | 3.5% | 13.6% | $100 |
| [Schwab Total Stock Market Index](http://fortune.com/mutual-fund/SWTSX/) (SWTSX) | Blend | 0.09% | 2.8% | 13.3% | $100 |

| Midcap/Small-Cap | Style | Ann. Expenses | Total Return in 2015 | 5 year Ann. Return | Min. Inital Investment |
| --- | --- | --- | --- | --- | --- |
| [Shares Core S&P Mid-Cap ETF](http://fortune.com/etf/IJH/) (IJH) | Blend | 0.12% | 1.2% | 11.8% | N.A. |
| [iShares Core S&P Small-Cap ETF](http://fortune.com/etf/IJR/) (IJR) | Blend | 0.12% | 2.0% | 13.1% | N.A. |

| Foreign | Style | Ann. Expenses | Total Return in 2015 | 5 year Ann. Return | Min. Inital Investment |
| --- | --- | --- | --- | --- | --- |
| [Fidelity Spartan International](http://fortune.com/mutual-fund/FSIIX/) (FSIIX) | Large Blend | 0.20% | 1.1% | 4.4% | $2,500 |
| [Vanguard Total International Stock](http://fortune.com/mutual-fund/VGTSX/) (VGTSX) | Large Blend | 0.22% | \-2.1% | 2.2% | $3,000 |
| [Vanguard FTSE All-World ex-U.S. Small-Cap](http://fortune.com/mutual-fund/VFSVX/) (VFSVX) | Small/Mid Blend | 0.37% | 1.6% | 2.6% | $3,000 |
| [Vanguard Emerging Markets Stock](http://fortune.com/mutual-fund/VEIEX/) (VEIEX) | Emerging Markets | 0.33% | \-13.1% | \-4.0% | $3,000 |

| Specialty | Style | Ann. Expenses | Total Return in 2015 | 5 year Ann. Return | Min. Inital Investment |
| --- | --- | --- | --- | --- | --- |
| [Vanguard REIT Index](http://fortune.com/mutual-fund/VGSIX/) (VGSIX) | Real Estate | 0.26% | 0.1% | 11.7% | $3,000 |

| Bond | Style | Ann. Expenses | Total Return in 2015 | 5 year Ann. Return | Min. Inital Investment |
| --- | --- | --- | --- | --- | --- |
| [Vanguard Total Bond Market Index](http://fortune.com/mutual-fund/VBMFX/) (VBMFX) | Intermediate Term | 0.20% | 0.5% | 3.0% | $3,000 |
| [Vanguard Short-Term Bond Index](http://fortune.com/mutual-fund/VBISX/) (VBISX) | Short Term | 0.20% | 1.0% | 1.3% | $3,000 |
| [Vanguard Inflation-Protected Securities](http://fortune.com/mutual-fund/VIPSX/) (VIPSX) | Inflation-Protected | 0.20% | \-1.2% | 2.4% | $3,000 |
| [Vanguard Short-Term Inflation-Protected Sec. ETF](http://fortune.com/etf/VTIP/) (VTIP) | Inflation-Protected | 0.10% | 0.0% | N.A. | N.A. |
| [Vanguard Total International Bond Index](http://fortune.com/mutual-fund/VTIBX/) (VTIBX) | World | 0.23% | 0.8% | N.A. | $3,000 |

<table style="width:100%;border-top:1px solid black;border-bottom:none;border-right:none;border-left:none"><tbody><tr><td style="line-height:1.2;width:100%;font:Arial;text-align:left;font-size:22px;padding:12px padding-bottom:-20px;padding-top:20px;border:none"><span><strong>One-Decision Funds</strong></span><br>Don’t want to put ­together a portfolio on your own? Then use one of these professionally managed funds that hold a ­diversified mix of stocks and bonds.</td></tr></tbody></table>

| Bond | Style | Ann. Expenses | Total Return in 2015 | 5 year Ann. Return | Min. Inital Investment |
| --- | --- | --- | --- | --- | --- |
| [Fidelity Balanced](http://fortune.com/mutual-fund/FBALX/) (FBALX) | Balanced | 0.56% | 2.2% | 9.7% | $2,500 |
| [Fidelity Global Balanced](http://fortune.com/mutual-fund/FGBLX/) (FGBLX) | Balanced | 0.99% | 0.0% | 5.0% | $2,500 |
| [Vanguard Wellington](http://fortune.com/mutual-fund/VWELX/) (VWELX)4 | Balanced | 0.26% | 1.7% | 9.8% | $3,000 |
| T. Rowe Price Retirement Funds Example: [2020 Fund](http://fortune.com/mutual-fund/TRRBX/) (TRRBX)  
62% stocks/38% bonds | Target Date | 0.66% | 1.3% | 7.9% | $2,500 |
| Vanguard Target Retirement Example: [2035 Fund](http://fortune.com/mutual-fund/VTTHX/) (VTTHX)  
82% stocks/18% bonds | Target Date | 0.18% | 0.6% | 8.9% | $1,000 |

<table style="width:100%;border-top:1px solid black;border-bottom:none;border-right:none;border-left:none"><tbody><tr><td style="line-height:1.2;width:100%;font:Arial;text-align:left;font-size:22px;padding:12px padding-bottom:-20px;padding-top:20px;border:none"><span><strong>Custom Funds</strong></span><br>Supplement your core holdings with these funds to tilt your portfolio toward certain kinds of stocks and bonds, diversify more broadly, or play a hunch.</td></tr></tbody></table>

| Large-Cap | Style | Ann. Expenses | Total Return in 2015 | 5 year Ann. Return | Min. Inital Investment |
| --- | --- | --- | --- | --- | --- |
| [Dodge & Cox Stock](http://fortune.com/mutual-fund/DODGX/) (DODGX) | Value | 0.52% | \-1.4% | 13.1% | $2,500 |
| [PowerShares FTSE RAFI U.S. 1000 ETF](http://fortune.com/etf/PRF/) (PRF) | Value | 0.39% | \-0.6% | 12.7% | N.A. |
| [Sound Shore](http://fortune.com/mutual-fund/SSHFX/) (SSHFX) | Value | 0.92% | \-1.7% | 12.6% | $10,000 |
| [PowerShares S&P 500 High Quality Portfolio](http://fortune.com/etf/SPHQ/) (SPHQ) | Blend | 0.29% | 3.1% | 14.4% | N.A. |
| [Primecap Odyssey Growth](http://fortune.com/mutual-fund/POGRX/) (POGRX) | Growth | 0.63% | 6.6% | 14.3% | $2,000 |
| [T. Rowe Price Blue Chip Growth](http://fortune.com/mutual-fund/TRBCX/) (TRBCX) | Growth | 0.72% | 13.1% | 16.2% | $2,500 |

| Midcap | Style | Ann. Expenses | Total Return in 2015 | 5 year Ann. Return | Min. Inital Investment |
| --- | --- | --- | --- | --- | --- |
| [Ariel Appreciation](http://fortune.com/mutual-fund/CAAPX/) (CAAPX) | Blend | 1.12% | \-2.0% | 12.2% | $1,000 |
| [WisdomTree MidCap Dividend](http://fortune.com/etf/don/) (DON) | Value | 0.38% | 0.5% | 13.7% | N.A. |
| [T. Rowe Price Diversified Mid-Cap Growth](http://fortune.com/mutual-fund/PRDMX/) (PRDMX) | Growth | 0.89% | 4.6% | 12.3% | $2,500 |

| Small-Cap | Style | Ann. Expenses | Total Return in 2015 | 5 year Ann. Return | Min. Inital Investment |
| --- | --- | --- | --- | --- | --- |
| [Royce Opportunity](http://fortune.com/mutual-fund/RYPNX/) (RYPNX) | Value | 1.15% | –8.5% | 7.9% | $2,000 |
| [Vanguard Small-Cap Value ETF](http://fortune.com/etf/vbr/) (VBR) | Value | 0.09% | –0.8% | 12.0% | N.A. |
| [WisdomTree SmallCap Dividend](http://fortune.com/etf/des/) (DES) | Value | 0.38% | –2.7% | 11.5% | N.A. |
| [Wasatch Small Cap Growth](http://fortune.com/mutual-fund/WAAEX/) (WAAEX)4 | Growth | 1.21% | 2.3% | 10.3% | $2,000 |

| Specialty | Style | Ann. Expenses | Total Return in 2015 | 5 year Ann. Return | Min. Inital Investment |
| --- | --- | --- | --- | --- | --- |
| [PowerShares International Dividend Achievers ETF](http://fortune.com/etf/pid/) (PID) | Dividend | 0.55% | –14.9% | 2.3% | N.A. |
| [SPDR S&P Dividend ETF](http://fortune.com/etf/sdy/) (SDY) | Dividend | 0.35% | 0.7% | 12.7% | N.A. |
| [Cohen & Steers Realty](http://fortune.com/mutual-fund/CSRSX/) (CSRSX) | Real Estate | 0.97% | 2.9% | 11.6% | $10,000 |
| [SPDR Dow Jones International Real Estate ETF](http://fortune.com/etf/rwx/) (RWX) | Real Estate | 0.59% | –2.1% | 5.9% | N.A. |
| [iShares North American Natural Resources ETF](http://fortune.com/etf/ige/) (IGE) | Natural Resources | 0.48% | –19.0% | –3.9% | N.A. |

| Foreign | Style | Ann. Expenses | Total Return in 2015 | 5 year Ann. Return | Min. Inital Investment |
| --- | --- | --- | --- | --- | --- |
| [Oakmark International](http://fortune.com/mutual-fund/OAKIX/) (OAKIX)4 | Foreign Large Blend | 0.95% | –1.6% | 6.6% | $1,000 |
| [Vanguard International Growth](http://fortune.com/mutual-fund/VWIGX/) (VWIGX) | Foreign Large Growth | 0.47% | 2.2% | 4.5% | $3,000 |
| [T. Rowe Price Emerging Markets Stock](http://fortune.com/mutual-fund/PRMSX/) (PRMSX) | Emerging Markets | 1.24% | –8.4% | –2.7% | $2,500 |

| Bond | Style | Ann. Expenses | Total Return in 2015 | 5 year Ann. Return | Min. Inital Investment |
| --- | --- | --- | --- | --- | --- |
| [Dodge & Cox Income](http://fortune.com/mutual-fund/DODIX/) (DODIX) | Intermediate Term | 0.44% | 0.0% | 3.8% | $2,500 |
| [Fidelity Total Bond](http://fortune.com/mutual-fund/FTBFX/) (FTBFX) | Intermediate Term | 0.45% | 0.4% | 3.7% | $2,500 |
| [Vanguard Short-Term Investment Grade](http://fortune.com/mutual-fund/VFSTX/) (VFSTX) | Short Term | 0.20% | 1.2% | 2.1% | $3,000 |
| [iShares iBoxx $ Investment Grade Corp. Bond](http://fortune.com/etf/lqd/) (LQD) | Corporate | 0.15% | –0.4% | 5.1% | N.A. |
| [Loomis Sayles Bond](http://fortune.com/mutual-fund/LSBRX/) (LSBRX) | Multisector | 0.91% | –5.3% | 4.5% | $2,500 |
| [Fidelity High Income](http://fortune.com/mutual-fund/SPHIX/) (SPHIX) | High Yield | 0.72% | –3.0% | 4.8% | $2,500 |
| [Vanguard Intermediate-Term Tax-Exempt](http://fortune.com/mutual-fund/VWITX/) (VWITX) | Muni Natl. Intermediate | 0.20% | 2.3% | 4.3% | $3,000 |
| [Vanguard Limited-Term Tax-Exempt](http://fortune.com/mutual-fund/VMLTX/) (VMLTX) | Muni Natl. Short | 0.20% | 1.1% | 1.7% | $3,000 |
| [Templeton Global Bond](http://fortune.com/mutual-fund/TPINX/) (TPINX)5 | World | 0.90% | –1.9% | 3.1% | $1,000 |
| [Fidelity New Markets Income](http://fortune.com/mutual-fund/FNMIX/) (FNMIX) | Emerging Markets | 0.90% | 1.9% | 5.0% | $2,500 |

###### NOTES: 1\. Net prospectus expense ratios were used. 2\. Total return figures are as of Dec. 4, 2015. 3\. Five-year returns are annualized. 4\. Shares available only through fund company.5\. 4.25% sales load. N.A.: Not available or not applicable. ETFs do not have a minimum initial investment. ETFs do not have a minimum initial investment. SOURCES: Lipper and fund companies

<table style="width:63%;border-top:1px solid black;border-bottom:none;border-right:none;border-left:none"><tbody><tr><td style="line-height:1.1;width:100%;font:Arial;text-align:left;font-size:29px;padding-bottom:-20px;padding-top:20px;border:none"><span><strong>Fund Glossary: How to Read the Tables</strong></span></td></tr><tr><td style="line-height:1.1;width:100%;font:Arial;text-align:left;font-size:22px;padding-bottom:-20px;padding-top:20px;border:none"><span><strong>Large-Cap: </strong></span>Invests in shares of firms with stock market values, or market capitalizations, of $10 billion or more</td></tr><tr><td style="line-height:1.1;width:100%;font:Arial;text-align:left;font-size:22px;padding:12px padding-bottom:-20px;padding-top:20px;border:none"><span><strong>Small-Cap and Midcap: </strong></span>Invest in smaller companies</td></tr><tr><td style="line-height:1.1;width:100%;font:Arial;text-align:left;font-size:22px;padding:12px padding-bottom:-20px;padding-top:20px;border:none"><span><strong>Specialty: </strong></span>Invests in assets that don’t move in sync with the broad stock or bond market</td></tr><tr><td style="line-height:1.1;width:100%;font:Arial;text-align:left;font-size:22px;padding:12px padding-bottom:-20px;padding-top:20px;border:none"><span><strong>Target Date: </strong></span>Provides exposure to a mix of stocks and bonds appropriate for your age—and gradually grows more conservative over time</td></tr><tr><td style="line-height:1.1;width:100%;font:Arial;text-align:left;font-size:22px;padding:12px padding-bottom:-20px;padding-top:20px;border:none"><span><strong>Balanced: </strong></span>Offers you exposure to a mix of stocks and bonds, but doesn’t grow more conservative over time</td></tr><tr><td style="line-height:1.1;width:100%;font:Arial;text-align:left;font-size:22px;padding:12px padding-bottom:-20px;padding-top:20px;border:none"><span><strong>Value: </strong></span>Looks for stocks that are selling at bargain prices</td></tr><tr><td style="line-height:1.1;width:100%;font:Arial;text-align:left;font-size:22px;padding:12px padding-bottom:-20px;padding-top:20px;border:none"><span><strong>Growth: </strong></span>Focuses on companies with fast-growing earnings</td></tr><tr><td style="line-height:1.1;width:100%;font:Arial;text-align:left;font-size:22px;padding:12px padding-bottom:-20px;padding-top:20px;border:none"><span><strong>Blend: </strong></span>Owns both growth-and value-oriented stocks</td></tr><tr><td style="line-height:1.1;width:100%;font:Arial;text-align:left;font-size:22px;padding:12px padding-bottom:-20px;padding-top:20px;border:none"><span><strong>Short Term: </strong></span>Owns bonds that mature in about two years or less</td></tr><tr><td style="line-height:1.1;width:100%;font:Arial;text-align:left;font-size:22px;padding:12px padding-bottom:-20px;padding-top:20px;border:none"><span><strong>Intermediate Term: </strong></span>Owns bonds that mature in two to 10 years</td></tr><tr><td style="line-height:1.1;width:100%;font:Arial;text-align:left;font-size:22px;padding:12px padding-bottom:-20px;padding-top:20px;border:none"><span><strong>Multisector: </strong></span>Can buy foreign or domestic bonds of any maturity</td></tr><tr><td style="line-height:1.1;width:100%;font:Arial;text-align:left;font-size:22px;padding:12px padding-bottom:-20px;padding-top:20px;border:none"><span><strong>Inflation-protected: </strong></span>Owns bonds whose value at least keeps pace with the consumer price index</td></tr></tbody></table>

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