Investing $100K in Vanguard S&P 500 ETF Could Grow to $1M in 20 Years
Investing in the Vanguard S&P 500 ETF could turn $100,000 into a million in 20 years, according to a recent analysis. This ETF, which tracks the S&P 500 index, has proven to be a reliable wealth creator for investors over the past century.
Exchange-traded funds (ETFs) like the Vanguard S&P 500 ETF offer retail investors an easy way to gain exposure to stocks without the risk of picking individual companies. The Vanguard S&P 500 ETF aims to mirror the return of the S&P 500 index as closely as possible, with a net expense ratio of just 0.03%, making it a cost-effective choice.
To illustrate, investing $100,000 initially and adding $625 monthly could grow to over $1 million in 20 years, assuming an average annual return of 8.93%, which is the S&P 500's average over the past two decades. This calculation does not include dividends, which can further boost returns. However, some analysts, like those at The Motley Fool Stock Advisor, have identified 10 stocks they believe could outperform the Vanguard S&P 500 ETF.
The Vanguard S&P 500 ETF has become a popular choice among retail investors, ranking as the sixth most-held security and the number one ETF on Robinhood. Despite recent market volatility due to President Trump's tariff and trade policies, the S&P 500's long-term performance remains attractive to investors seeking broad-based equity exposure.
