Which are the best index funds for beginners with a Schwab brokerage account?

Because index funds have become the go-to option for novice and seasoned investors, the finance industry has done a terrific job creating a treasure trove of these investment vehicles.

But where do you begin? Here is a list of three good options if you are starting out:

Schwab U.S. Dividend Equity ETF (SCHD)

• 06/21: $74.51
• Yield: 2.81%
• YTD: +18.17%
• Top Holdings: The Home Depot, IBM, Pfizer, Pepsico, and Texas Instruments

Schwab Fundamental U.S. Large Company Index ETF (FNDX)

• 06/21: $53.54
• Yield: 1.89%
• YTD: +20.34%
• Top Holdings: Apple, Exxon Mobil, Microsoft, JPMorgan Chase, and Wells Fargo

Schwab U.S. Large-Cap Value ETF (SCHV)

• 06/21: $67.88
• Yield: 2.48%
• YTD: +14.51%
• Top Holdings: Berkshire Hathaway, JPMorgan Chase, Johnson & Johnson, The Walt Disney, and Procter & Gamble.



In the end, the primary problem is that you would be buying at all-time highs, particularly at a time when it feels like a steep correction is imminent. So, be sure to monitor the market and pay attention to the dips.