Top 55 Best Performing Index Funds in the Philippines in 2024

Are you looking for the best index funds to invest in the Philippines in 2024? Check out the complete list of the best-performing index funds below.

Index funds are among the most brilliant investments created for investors who prefer investing in numerous assets in one fund.

Because of the simplicity and effortless way to invest in index funds, they are also among the favorite passive income-generating assets of many traders and investors.

If you are a beginner investor of index funds, make sure you read the complete guide here: How to invest in index funds?

Benefits of Investing in Index Funds

  • Affordable
  • Low expense ratio
  • Less risky than individual stock
  • Managed by experts
  • Diversification
  • Wide selection of funds

Types of Index Funds Available in the Philippines

You can open an index fund in the Philippines through the following investment accounts:

  • Mutual Fund
  • UITF (Unit Investment Trust Fund)
  • Index Feeder Fund
  • PERA (Personal Equity Retirement Account)

How to Invest in Index Funds in the Philippines?

Step 1: Evaluate your risk profile

Index funds are easy to invest, but investors must first evaluate their risk profile before opening an index fund because these assets are primarily for aggressive investors.

Equity index funds follow a particular stock market index or benchmark; thus, you must accept the stock market’s risks and volatility factors.

Step 2: Choose your index fund

Since an index fund copies or tracks the performance of an index, you must choose your preferred index fund that mirrors your target stock market index.

If you are investing in stocks in the Philippines, you would want to track the investment result of the Philippine Stock Exchange Index (PSEI).

If you invest in global or international stocks, you would want to invest in feeder funds because they invest in world equities.

The complete list of available index funds in the Philippines is displayed below. You can use it as a guide together with the most excellent index fund in 2024.

best index funds in the philippines 2024

Step 3: Buy shares of your index fund

Suppose you have an online trading account in the Philippines or a stock brokerage account, like COL Financial, BDO Securities, FirstMetroSec, and BPITrade. In that case, you can already start buying shares of your chosen index funds.

Otherwise, you can invest in an index fund through your bank’s UITF index funds or feeder funds.

Another way to start an index fund investment in the Philippines is through a mutual fund company like Sun Life, Philequity, and ALFM Mutual funds.

Step 4: Set your target period or target profit

Most index funds are long-term driven because they are primarily allocated in equities traded on the Philippine stock exchange. So, your target period must be suitable for one year or more to maximize the growth potential of your fund.

Alternately, you may set a target profit instead of a target period if you prefer to lock in your earnings whenever you want. Consider the expense ratio or redemption fee when you do this method.

Step 5: Hold your shares of index fund

Hold your shares of the index fund until your target period or target profit. Historically speaking, equities in the Philippines tend to grow over time, so you have to be more patient.

Step 6: Sell or redeem your shares of index fund

There comes the time when you have to let go of your shares of index funds to realize your profit. Sell your shares or redeem your units of index funds.

Best Performing Index Funds in the Philippines in 2024

Index FundTypeROI (YTD)
AIA Peso Equity FundUITF7.16%
ATRAM Philippine Equity Smart Index FundUITF6.73%
PRUInvest PH Dynamic Equity Fund (Class I)UITF6.52%
SB High Dividend Peso Equity FundUITF6.42%
PRUInvest PH Dynamic Equity Fund (Class A)UITF6.37%
PBCom Value Equity Fund Class IUITF6.35%
PBCom Value Equity Fund Class RUITF6.24%
Sun Life Prosperity Philippine Equity FundMutual Fund6.11%
EastWest PSEi Tracker FundUITF6.08%
BPI Philippine Equity Index FundUITF6.07%
BDO PERA Equity Index FundPERA6.06%
UnionBank PSE Index Tracker FundUITF6.06%
China Bank Philippine Equity Index Tracker FundUITF6.06%
PNB Phil-Index Tracker FundUITF6.04%
SB Philippine Equity Index FundUITF6.02%
BDO Equity Index FundUITF6.02%
BPI Equity Value FundUITF5.95%
RCBC Equity FundUITF5.89%
Odyssey Philippine Equity FundUITF5.89%
AUB Equity Investment Trust FundUITF5.84%
Chinabank Equity FundUITF5.75%
BDO ESG Quity FundUITF5.73%
Metro Equity FundUITF5.72%
PAMI Equity Index FundMutual Fund5.70%
Sun Life Prosperity Philippine Stock Index FundMutual Fund5.65%
Metro Philippine Equity Index Tracker FundUITF5.65%
BDO Focused Equity FundUITF5.61%
BDO Institutional Equity FundUITF5.61%
Philippine Stock Index FundMutual Fund5.61%
Philequity PSE Index FundMutual Fund5.60%
First Metro Consumer FundMutual Fund5.58%
PNB Equity FundUITF5.57%
Manulife Equity Wealth Fund (Class I)UITF5.56%
BDO Equity FundUITF5.53%
RCBC R25 Dividend Equity FundUITF5.52%
BDO Dividend FundUITF5.49%
Odyssey Philippine High Conviction Equity FundUITF5.49%
COL Equity Index Unitized Mutual FundMutual Fund5.46%
Metrobank PERA Equity FundPERA5.44%
CTBC Bank - Sun Life Philippine Stock Index Feeder FundUITF5.42%
BPI Philippine Consumer Equity Index FundUITF5.39%
Philam Strategic Growth FundMutual Fund5.38%
Manulife Equity Wealth Fund (Class A)UITF5.37%
RCBC R25 Blue-chip Equity FundUITF5.32%
First Metro Save and Learn Philippine Index FundMutual Fund5.30%
BPI Philippine High Dividend Equity FundUITF5.20%
Philequity MSCI Philippine Index FundMutual Fund5.19%
UnionBank PHP Eqity FundUITF5.16%
EastWest PhilEquity Feeder FundUITF5.08%
First Metro Save and Learn Equity FundMutual Fund4.98%
United FundMutual Fund4.98%
Chinabank High Dividend Equity FundUITF4.97%
SB US Technology Equity Index Feeder FundUITF4.87%
Metro High Dividend Yield Unit Paying FundUITF4.76%
Soldivo Strategic Growth FundMutual Fund4.71%

Past performance is not a guarantee of future performance.

FAQ About Investing in Index Funds in the Philippines:

What is the best index fund in the Philippines?

The best index fund in the Philippines is Sun Life Prosperity Philippine Index Fund because it tracks the Philippine Stock Exchange Index (PSEI) 100%. The minimum subscription of P1,000 is also very affordable. There is zero early redemption fee. Its performance is also outstanding with other mutual funds in the country.

What is the best index fund for beginners?

The best index fund for beginners is Vanguard S&P 500 ETF (VOO) because it tracks the S&P 500 index, which is composed of the most prominent stocks in the USA. Its expense ratio of 0.03% is among the cheapest on the market. It has a 1.59% dividend yield and a 3-year total return of 32% (amidst market slowdown).

How to earn money by investing in index funds?

An investor can earn money investing in index funds through dividends and when the value of the index fund units or shares grows over time. An effective strategy is needed to help the investor to reach his capital objectives and goals.

How to invest in Vanguard index funds in the Philippines?

Vanguard index funds are one of the world’s most successful investments. You can also invest in Vanguard index funds while you’re in the Philippines by opening a Vanguard account or by using an online trading platform that offers Exchange-Traded Funds (ETF).

Disclaimer: This article is for information purposes only and should not be considered as a professional advice or an endorsement of a particular investment. All investments have risks. Risk only the capital you’re not afraid to lose. Always do your own research before investing. Past performance is not an indication of future results.

About Fehl Dungo

Founder of DailyPik, entrepreneur, and tech investor. She has a Degree in Accountancy and background in Finance. She analyzes stocks everyday. Connect with Fehl on Facebook

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