3 top ASX index funds to buy now

I think these index funds are well worth a look right now.

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I'm a big fan of ASX index fund investing. The inherent qualities of an index fund – mainly instant diversification and a guaranteed return at the rate of the market – make it a perfect investment for almost anyone in my view.

But thanks to the explosive growth in popularity of index investing in recent years, the ASX is now awash with index ETFs. As such, choosing one that works for you can get a little overwhelming. So today, I'm going to discuss three ASX index funds that I think are a buy today.

3 ASX index funds I'd happily buy today

iShares S&P 500 ETF (ASX: IVV)

To start off with, let's discuss an ASX index fund endorsed by the legendary Warren Buffett himself. The S&P 500 Index (SP: .INX) is the most widely tracked and invested index in the world.

It is a barometer of the entire US stock market and represents the largest 500 companies listed on the American markets. That's everything from Apple and Amazon to Coca-Cola and McDonald's.

Warren Buffett has recommended an S&P 500 index fund as the perfect investment for "most people", calling it a slice of America. I think this ASX index fund contains most of the world's highest-quality companies. As such, it's a no-brainer.

iShares MSCI Japan ETF (ASX: IJP)

This ASX index fund is a little exotic. It gives investors exposure to an index that reflects most companies on the Japanese stock exchange.

I think Japan houses some of the world's best companies outside of the United States. Through this ETF, investors will gain exposure to the likes of Toyota, Nintendo, Sony, Honda, Softbank and Mitsubishi Heavy Industries.

In my view, this is a great investment for any Australian to consider, given the healthy diversification it can add to any portfolio. This ASX index fund has gained more than 30% over the past year. But I think there is plenty of upside going forward.

VanEck Australian Equal Weight ETF (ASX: MVW)

Finally, we have an unconventional investment to discuss. Most index funds on the ASX, including the most popular choices, are weighted by market capitalisation.

This means that the larger companies command more weight and influence within each fund than the smaller ones. It's why a typical ASX fund is more heavily influenced by the movements of the Commonwealth Bank of Australia (ASX: CBA) share price than JB Hi-Fi Ltd (ASX: JBH).

As such, a normal ASX index fund is very heavily tilted towards the big four banks and the large miners like BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO). That might be great for dividend lovers. But this doesn't sit well with other investors. That's where the VanEck Equal Weight ETF comes in.

Instead of giving the lion's share of the ETF to the largest stocks, the index fund gives the largest 75 or so shares on the ASX equal treatment within the ETF. Because of this, CBA stock has just as much influence here as JB Hi-Fi shares.

This approach has worked well for this ETF in recent years. Current data shows MVW units outperforming a standard ASX 200 index fund over the last three years on average.

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