Index funds are ideal for those investors who do not want to pay huge investment fees or do not want to remain focused on special individual stocks. Choosing the right index fund means acquiring knowledge about the market and picking the fund that fits your investment criteria. However, with a number of index funds to choose from, it could become difficult to shortlist the one that fits your needs. To make your job easier, here is a list of four the best index funds of 2018:

Vanguard S&P 500
A preferred investment option by many and a handpicked fund by Warren Buffet, Vanguard S&P 500 is one of the best index funds available today.

Schwab U.S. Small-Cap ETF™
This fund may give you the right amount of exposure in the market without you having to pick up specific stocks. Schwab U.S. Small-Cap ETF™ invests in a range of smaller companies and has an expense ratio of 0.05%.

Vanguard High Dividend Yield ETF
Investors looking for a high dividend as an additional income may choose this fund. It tends to outperform the non-dividend counterparts over a long term.

Vanguard FTSE All-World ex-US ETF
If you wish to add international exposure to your portfolio, this fund is a good bet. It invests in a wide range of stocks from the global market.

Every fund has its pros and cons. It is best to choose consistently performing funds on the basis of your investment criteria. You need to consider the tenure for the investment, your risk appetite, the purpose of investment, and your financial goals. Depending on these, shortlist the funds that fit your investment criteria. If you are looking for a constant source of income through investment, choose high-dividend-yield funds and if you are looking for growth, choose the S&P funds that give high returns over a period of time. The trick is to remain invested in the long term in order to generate wealth, and not get affected by the market volatility in the short term.