If Your Goal is a $1 Million Portfolio: Consider Purchasing These 3 Vanguard ETFs in 2025 for Long-term Investment
Investing your way to a million-dollar portfolio isn't a walk in the park, but the right moves can help you get there. One smart investment strategy is diving into Exchange-Traded Funds (ETFs). An ETF is a collection of numerous stocks bundled up into one simple investment. These funds are an excellent way to create a diversified portfolio with minimal effort.
However, not all ETFs are created equal. If you're aiming for long-term wealth, these three Vanguard ETFs could be your ticket to the million-dollar club.
1. Vanguard S&P 500 ETF
The Vanguard S&P 500 ETF (VOO -0.30%) mirrors the S&P 500, which includes the 500 largest U.S. companies. This fund can offer a smart risk mitigation strategy, as the companies within the index are among the toughest and most experienced in the world. While they might take a hit during market downturns, these companies have a knack for bouncing back stronger than before.
The S&P 500 has historically provided an average annual return of approximately 10%. Given this rate, consistently investing $200 per month could theoretically make you a millionaire after 40 years.
2. Vanguard S&P 500 Growth ETF
Looking for a balance between risk and reward? The Vanguard S&P 500 Growth ETF (VOOG -0.35%) might be your beast. This ETF mirrors the S&P 500, but it only comprises 209 stocks with the most growth potential. Although it might provide less diversification than the S&P 500 ETF, you could potentially reap higher returns over time.
In fact, the Vanguard S&P 500 Growth ETF has reported an average annual return of 15% over the past 10 years. With this rate, turning your $200 monthly investment into a million dollars might only take 30 years.
3. Vanguard Information Technology ETF
The Vanguard Information Technology ETF (VGT -0.96%) is an investment with a higher risk profile but immense potential. This ETF focuses on stocks from various technology sectors, which can be quite volatile – especially in the short term – but they are also renowned for their explosive growth.
Over the past 10 years, this ETF has reported an average annual return of close to 21%. If you're investing $200 per month at this rate, earning a million dollars might take just around 24 years.
Before jumping into any investment, remember that past performance does not guarantee future results. Ensure to consult a financial advisor and consider numerous factors before making your final decision.
Investing in the Vanguard S&P 500 ETF (VOO) can be a smart risk mitigation strategy, as it mirrors the S&P 500 and includes stocks from the largest U.S. companies, providing an average annual return of approximately 10%. With consistent monthly investments, this could potentially help you amass a million dollars over 40 years.
Regarding finance and investments, if you're seeking a balance between risk and reward, you might consider the Vanguard S&P 500 Growth ETF (VOOG), which has reported an average annual return of 15% over the past 10 years, potentially helping you become a millionaire with your $200 monthly investment in 30 years.
