Best Mutual Funds to Dollar-Cost Average Into in 2026

Introduction

Dollar-cost averaging — investing a fixed amount at regular intervals regardless of price — is one of the simplest strategies for building long-term wealth. It removes the pressure of market timing and turns volatility into an advantage: when prices dip, your fixed contribution buys more shares.

But DCA works best when the fund you're buying into meets three criteria: $0 investment minimum (so any amount works on any schedule), rock-bottom expense ratio (fees compound just like returns), and broad diversification (you're buying the whole market, not betting on sectors).

Here are five mutual funds built for dollar-cost averaging in 2026 — ranked by how well they fit the DCA investor's needs.

New to the concept? Read our full guide: What Is Dollar-Cost Averaging?

Quick Comparison

FZROX and FNILX report 0.00% expense ratios. They use proprietary indexes (Fidelity U.S. Total Investable Market Index and Fidelity U.S. Large Cap Index) instead of licensing third-party indexes like the S&P 500 or Russell 3000, which is how they eliminate the fee.

Why These Funds Work for DCA

Every fund on this list shares the traits that make dollar-cost averaging frictionless:

• $0 minimums — You can start with $25, $50, or $500. No fund on this list requires a lump sum to get started.
• Near-zero fees — The most expensive fund here charges 0.03%. On a $10,000 portfolio, that's $3/year. Fees are the one drag on returns you can control — and with DCA, you're buying shares repeatedly, so low fees compound in your favor over decades.
• Broad diversification — Three of these funds hold the total U.S. stock market (2,500+ stocks). The other two track the S&P 500 or large-cap universe. Either way, you're not making sector bets — you're owning the market.

Fund-by-Fund Breakdown

1. Fidelity ZERO Total Market Index (FZROX) — Best for Pure DCA Simplicity

FZROX is the ultimate DCA fund: zero expense ratio, zero minimum, total market exposure. It holds roughly 2,500 U.S. stocks across all market capitalizations.

The catch: FZROX is only available through a Fidelity brokerage account. You can't hold it at Schwab or Vanguard. And because it tracks Fidelity's proprietary index (not the Russell 3000 or Wilshire 5000), its performance can diverge slightly from traditional total market funds — though the difference has been negligible.

Best for: Fidelity customers who want the absolute lowest-cost total market exposure for automatic monthly investments.

2. Fidelity Total Market Index (FSKAX) — Best All-Around Total Market Fund

FSKAX does everything FZROX does but tracks a standard index and is marginally more portable. At 0.015% expense ratio, you'd need a $667,000 portfolio before the fee difference with FZROX costs you $100/year.

With $131.7 billion in assets, FSKAX is one of the largest total market funds in existence — meaning tight tracking, deep liquidity, and no closure risk. Its 10-year annualized return of 14.53% reflects the full benefit of broad market ownership through multiple cycles.

Best for: Investors who want total market exposure with a track record longer than FZROX's (which launched in 2018).

3. Schwab Total Stock Market Index (SWTSX) — Best for Schwab Customers

SWTSX is Schwab's answer to FSKAX — total U.S. market exposure at 0.03%, with $0 minimum and $41.3 billion in assets. Performance tracks closely with FSKAX: 23.47% over the past year, 12.31% over five years.

If your brokerage is Schwab, SWTSX is the natural DCA choice. Setting up automatic monthly purchases takes two minutes and costs essentially nothing.

Best for: Schwab customers who want to automate total market investing.

4. Schwab S&P 500 Index (SWPPX) — Best for S&P 500 Focus

Not everyone wants total market exposure. If you prefer the simplicity of the S&P 500 — 500 large-cap U.S. companies, no small-cap volatility — SWPPX delivers at 0.02% with a $0 minimum. Its 5-year return of 13.59% edges out the total market funds on this list, reflecting the S&P 500's recent large-cap dominance.

With $137.6 billion in assets, SWPPX is among the largest S&P 500 index funds. Compare it directly: SWPPX vs FXAIX or SWPPX vs VFIAX.

📊 Related comparison: FXAIX vs FSKAX — Fidelity S&P 500 vs Total Market

Best for: Investors who want large-cap-only exposure with the lowest possible fee at Schwab.

5. Fidelity ZERO Large Cap Index (FNILX) — Best Zero-Fee S&P 500 Alternative

FNILX is Fidelity's zero-fee answer to the S&P 500 — though it technically tracks Fidelity's proprietary large-cap index, not the S&P 500 itself. In practice, the holdings overlap almost entirely with the S&P 500. One-year return: 22.88%. Five-year: 13.28%.

Like FZROX, FNILX is Fidelity-only. But if you're already at Fidelity and want S&P 500-like exposure with literally no fee, it's hard to argue against it for a DCA strategy.

Best for: Fidelity customers who want zero-cost large-cap exposure on autopilot.

How to Choose: Total Market vs. S&P 500 for DCA

The biggest decision on this list isn't which fund family — it's whether you want total market (FZROX, FSKAX, SWTSX) or S&P 500 / large-cap (SWPPX, FNILX).

Choose total market if: You want maximum diversification across all company sizes, including small- and mid-caps. Historically, small caps have delivered a return premium over long periods — though with more volatility along the way.

Choose S&P 500 if: You want the simplicity and stability of America's 500 largest companies. Over the past 5 years, large caps have outperformed — SWPPX's 13.59% vs. SWTSX's 12.31% reflects this.

For DCA specifically, either approach works. The key is consistency: pick one, automate it, and let compounding do the work.

Setting Up Automatic DCA

All five funds are available for automatic investment at their respective brokerages:

1. Fidelity (FZROX, FSKAX, FNILX): Automatic Investments → set amount, frequency (weekly/biweekly/monthly), and fund. Minimum per transaction: $1.
2. Schwab (SWPPX, SWTSX): Automatic Investment Plan → same setup. Minimum per transaction: $1.

Most DCA investors choose monthly — aligned with payday — but biweekly works too. The evidence on optimal frequency is thin; what matters is that you do it consistently.

FAQ

What is the best mutual fund for dollar-cost averaging? FZROX (Fidelity ZERO Total Market Index) checks every box: $0 minimum, 0.00% expense ratio, total U.S. market exposure. If you're at Fidelity, it's the default choice. At Schwab, SWTSX fills the same role.

Can I dollar-cost average into any mutual fund? Yes, but funds with $0 minimums make it practical. Vanguard's popular VTSAX requires a $3,000 initial investment — fine for lump sums, but a barrier for someone starting with $100/month. All five funds here have $0 minimums.

Is it better to DCA into a total market fund or an S&P 500 fund? Both work well for DCA. Total market funds (FZROX, FSKAX, SWTSX) give you broader exposure including small- and mid-caps. S&P 500 funds (SWPPX, FNILX) focus on the 500 largest companies. Over the past 5 years, the S&P 500 has slightly outperformed — but over 20+ year horizons, total market tends to be very close. Pick the one that matches your preference and stick with it.

How often should I dollar-cost average? Monthly is the most common and practical frequency — it aligns with most pay schedules. Academic research shows minimal difference between weekly, biweekly, and monthly DCA. Consistency matters more than frequency.

Is dollar-cost averaging better than investing a lump sum? Statistically, lump-sum investing outperforms DCA about two-thirds of the time (because markets trend upward). But DCA reduces the risk of investing everything at a peak. For most people who invest from ongoing income rather than a windfall, DCA isn't a choice — it's the default. The important thing is to invest regularly rather than sit in cash.