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Globe and Mail
11 hours ago
- Business
- Globe and Mail
2 Vanguard ETFs That Can Turn $300 per Month Into Over $1 Million
Investing a regular amount of money into the stock market each month can be an excellent way to grow your savings and build up a portfolio that's eventually worth $1 million or more. But it can be challenging to do, especially since you have to ensure you can continue to afford making monthly investments, and then picking which investments to make with that money. Amid volatile economic conditions, that's no easy task. You can, however, simplify the process by going with some solid exchange-traded funds (ETFs) that can diversify your portfolio and set you up for some great growth opportunities in the future. A couple of low-cost Vanguard ETFs to consider for this purpose include the Vanguard Growth Index Fund (NYSEMKT: VUG) and the Vanguard Information Technology Index Fund (NYSEMKT: VGT). Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Here's why investing $300 per month into either one of these ETFs could put you on track to generating a $1 million portfolio in the future. Vanguard Growth Index Fund The Vanguard Growth Index Fund is a great, growth-focused ETF you can add to your portfolio. It charges an expense ratio of only 0.04%, which means you don't have to worry about high fees chipping away at your gains. What's attractive about this fund is that it focuses on large-cap growth stocks. These are the types of investments that can drive long-run returns for your portfolio and make the most of your money. Stocks such as Tesla, Amazon, and Nvidia are all among its top-10 holdings. These are leaders within their respective industries, and their businesses are synonymous with growth. With more than 160 stocks in total, this is a well-diversified ETF to simply buy and hold. It also yields around 0.5%. Over the past decade, the ETF has achieved total returns (which include dividend payments) of approximately 327%. That averages out to a compound annual growth rate (CAGR) of 15.6%. But for the sake of being conservative, let's assume that its returns will slow down given how hot the market has been in the past few years and how it's reaching record levels. If the ETF averages a return of about 10% for the very long haul (which is in line with the S&P 500 's long-term average), then a $300 per-month investment could grow to more than $1 million after a period of 34 years. This would require investing in the ETF every month during that time frame. But by doing so, you can put yourself on a path to producing some fantastic returns thanks to the effects of compounding. VUG Total Return Level data by YCharts. Vanguard Information Technology Index Fund As terrific of a growth investment as the Vanguard Growth Index Fund has been in recent years, it still falls well short of the gains the Vanguard Information Technology Index Fund has produced during that stretch. At 543%, its 10-year total returns average out to an annual gain of 20.5%. That's a mind-boggling return, and it highlights just how impressive the stocks within this ETF have been. There will be some overlap between this fund and the growth ETF, but the big difference is there is heavier exposure to big tech. Nvidia, Microsoft, and Apple account for a combined 45% of the Vanguard Information Technology ETF's total holdings, but they make up just around 32% of the growth ETF. That difference can be substantial over time, especially given how well a massive stock like Nvidia has performed. In 10 years, its returns have been truly exceptional, totaling 28,000%. Given Nvidia's size today as one of the most valuable companies in the world, odds are its returns will be far more modest over the next decade. While they may still be great, it's probably a good idea to factor in a healthy dose of conservatism with this ETF as well given how much of a boost Nvidia has given it in the past. Even though the ETF is focused on tech and growth, averaging 20% annual returns likely isn't going to be sustainable over the very long haul. The expectation of a 10% return may also be prudent with this ETF to ensure your expectations aren't set too high for future gains. As with the growth ETF, if you invest $300 per month into this fund, you can also be on the path to a $1 million portfolio. If this ETF continues to outperform the market, however, then it may take less than 34 years to get to $1 million. But by staying the course and investing regularly into this or the growth ETF, you can be in a good position for building up a solid portfolio over the long haul. The Vanguard Information Technology ETF charges an expense ratio of 0.09%, and while that's a bit higher than the growth ETF's fees, they aren't going to drastically alter your prospects for generating potentially life-changing returns from regularly investing in this fund. Should you invest $1,000 in Vanguard Index Funds - Vanguard Growth ETF right now? Before you buy stock in Vanguard Index Funds - Vanguard Growth ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vanguard Index Funds - Vanguard Growth ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $891,722!* Now, it's worth noting Stock Advisor 's total average return is995% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Apple, Microsoft, Nvidia, Tesla, and Vanguard Index Funds-Vanguard Growth ETF. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
Yahoo
6 days ago
- Business
- Yahoo
1 Top Vanguard ETF That Could Turn $50,000 Into $542,000 in 25 Years
The Vanguard Growth Index Fund ETF invests in the top growth stocks in the country. The ETF has soundly beaten the S&P 500 in recent years. There's still a lot more growth on the horizon, particularly in tech, due to artificial intelligence. 10 stocks we like better than Vanguard Index Funds - Vanguard Growth ETF › Generating a 10x return in the stock market doesn't have to be difficult -- if you're willing to be patient. By investing your money into a solid exchange-traded fund (ETF) and letting it grow, you can position yourself for some excellent gains, thanks to the effects of compounding. One of the better ETFs to hold for the long haul is the Vanguard Growth Index Fund ETF (NYSEMKT: VUG). As its name suggests, it holds growth stocks, and that has yielded some impressive returns for investors in recent years. Here's why this can be a great investment to hang on to, and why over a period of 25 years it could turn a $50,000 investment into $542,000. The Vanguard Growth ETF can be an ideal fund to pile money into, simply because it'll give you exposure to many of the best growth stocks in the world. It specifically focuses on top U.S. stocks, which can be important if you want to limit international exposure. As of April 30, there were 166 stocks in the ETF, which gives you some excellent diversification. And at the same time, it's not overly diverse where top holdings account for just tiny pieces of its overall net assets. With an expense ratio of only 0.04%, you'll also barely get hit with any fees from this fund. Fees can add up significantly with an ETF, especially as your investment rises in value, which is why this Vanguard fund can be an excellent option to hang on to for years as it'll allow you to keep the vast majority of your gains. In recent years, the Vanguard Growth ETF has been a market-beating investment to hold on to. And when you consider that the majority (57%) of its holdings are in tech stocks, which have been red hot of late due to the boom in artificial intelligence (AI), that should come as little surprise. Tech giants Nvidia, Apple, and Microsoft are its three largest holdings. Together, they make up more than 31% of the ETF's overall net assets. As these companies invest in AI and continue to grow their operations, there can be more gains ahead for them. While their valuations are undoubtedly high and there may be a period of slowdown in the future, especially amid worries of a recession and trade war on the horizon, the ETF still has the potential to outperform the broader market in the long run. Even if you assume that the ETF slows down and merely does as well as the S&P 500 -- its historical average is an annual return of 10% -- that can still be sufficient to turn your investment into more than 10x its original value. If you invest $50,000 into the ETF today and it grows by an average of 10% for 25 years, it'll grow to be worth approximately $542,000. Future returns are never a guarantee, but historically, growth stocks have generated fantastic gains for investors, and with this ETF, you can gain exposure to the best of the best. Regardless of where you think the market may be headed in the short term, as long as you're willing to hang on for the long haul, it's not likely you'll go wrong by investing in the Vanguard Growth Index Fund ETF. This can be a solid investment to build your portfolio around for decades. Before you buy stock in Vanguard Index Funds - Vanguard Growth ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Vanguard Index Funds - Vanguard Growth ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,702!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $870,207!* Now, it's worth noting Stock Advisor's total average return is 988% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Microsoft, Nvidia, and Vanguard Index Funds-Vanguard Growth ETF. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. 1 Top Vanguard ETF That Could Turn $50,000 Into $542,000 in 25 Years was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
30-05-2025
- Business
- Globe and Mail
2 Unstoppable Vanguard ETFs That Have Doubled in Just 5 Years
Investing in exchange-traded funds (ETFs) is usually associated with safe and stable long-term investing. But not all ETFs are the same. And just because you invest in one doesn't mean you can't still earn a great return. Two ETFs that have produced some fantastic returns for investors in the past five years are the Vanguard Information Technology Index Fund ETF (NYSEMKT: VGT) and the Vanguard Growth Index Fund ETF (NYSEMKT: VUG). Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » Here's why these funds have performed so well, and why it may not be too late to invest in them today. Vanguard Information Technology Index Fund ETF This Vanguard ETF invests broadly within the tech sector. It has more than 300 stocks in its portfolio, giving exposure to companies involved with semiconductors, application software, electronics components, and many other areas of tech. And with tech stocks surging in value in recent years due to the excitement surrounding artificial intelligence (AI), it's perhaps not too surprising to learn that this ETF has risen by 135% in the past five years. And that rises to around 141% when you include the fund's dividend. By comparison, the S&P 500 's total returns (which include dividends) are 109% over that period. While the past five years have been good ones for the market as a whole, tech stocks have done particularly well. Given the strong trends in AI and the investments that continue to flow into AI-related projects, this ETF can still be an excellent option for your portfolio. While it's by no means a pure AI investment, the stocks within this ETF can all benefit from trends related to it as tech spending as a whole is likely to increase as companies invest in next-gen technologies and upgrade their existing infrastructure. The fund also charges a modest expense ratio of 0.09%, which can be crucial in ensuring that fees aren't taking a big chunk of your returns. Most of the stocks in the ETF account for no more than 4% of its total holdings, with the exception being the big three: Apple, Microsoft, and Nvidia, which together make up nearly 46% of the fund's portfolio. But given their leading positions in tech, how these stocks go, other tech stocks are likely to follow, anyway. If you're looking for a long-term investment and don't mind the volatility that can sometimes come with tech stocks, the Vanguard Information Technology Index Fund can be an excellent ETF to buy and hold for years. Vanguard Growth Index Fund ETF For a more balanced option outside of just tech, you may want to consider the Vanguard Growth Index Fund ETF. It simply focuses on the largest growth stocks in the country. It is, however, a bit more concentrated since it has positions in 166 stocks (as of April 30). While tech stocks take up the bulk of the portfolio at more than 57% of the ETF's holdings, it also has a strong position in other sectors. Consumer discretionary stocks account for 19% of its portfolio, and industrials make up close to 10%. This ETF has also delivered market-beating returns for investors, but with less focus on tech, the gap between it and the S&P 500 hasn't been as significant as has been the case with the Vanguard Information Technology ETF. ETF Returns data by YCharts. The same top three stocks that make up the bulk of the Vanguard tech fund are also the top three in this ETF. But in the Vanguard Growth ETF, Apple, Microsoft, and Nvidia combine for around 31% of its holdings. Having less exposure to these big three stocks helps explain why the fund's performance hasn't been as strong as the other Vanguard ETF listed here. However, that also means more diversification for investors and potentially less risk in the long run. The more diversified Vanguard Growth Index Fund ETF, which charges a lower expense ratio of 0.04%, can be a better option for more risk-averse growth investors who don't necessarily want to be all-in on tech. Should you invest $1,000 in Vanguard Index Funds - Vanguard Growth ETF right now? Before you buy stock in Vanguard Index Funds - Vanguard Growth ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vanguard Index Funds - Vanguard Growth ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $638,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $853,108!* Now, it's worth noting Stock Advisor 's total average return is978% — a market-crushing outperformance compared to171%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025 David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Microsoft, Nvidia, and Vanguard Index Funds-Vanguard Growth ETF. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
Yahoo
26-04-2025
- Business
- Yahoo
Have $0 in Savings? Here's How Much You Should Aim to Invest Each Month If You Want to End Up With a $1 Million Portfolio by Retirement.
Everyone has to start somewhere when saving for retirement. Even if you don't have any money saved up today, it's possible to build up a strong nest egg by the time you retire, potentially even $1 million. Through the power of compounding and investing, you can grow your savings at far higher levels than if you were to just accumulate money in a bank account. What's important, however, is to have a plan and know how much you may need to invest regularly in order to achieve your goals. Below, I'll show you what amount you may want to aim to invest each month, based on your age and years until retirement, in order to end up with a portfolio of at least $1 million by the time you retire. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » If you're investing for a period of 20-plus years, then you'll likely be far better off going with growth stocks than dividend stocks. The latter are more suitable when you're older, closer to retirement, and want to keep your risk relatively low. The former, however, can produce much better gains over the long run but come with much greater uncertainty and risk in any individual year. As long as you're in it for the long haul and can stomach any bad years along the way, the payoff can be well worth it. Rather than picking growth stocks yourself, there are many exchange-traded funds (ETFs) you can invest in that will give you exposure to many of them. One popular option for growth investors is the Vanguard Growth Index Fund ETF (NYSEMKT: VUG). This has been a market-beating fund to own over the past decade, with its total returns (which include reinvested dividends) up more than 240%. The past doesn't predict the future. But odds are, by sticking with growth stocks, you'll be putting yourself in an excellent position to achieve some terrific returns in the years ahead. The VUG ETF holds more than 160 of the U.S.'s largest growth stocks, including big names like Nvidia and Meta Platforms. Its constituent stocks have averaged an annual earnings growth rate of more than 26% over the past five years. The fund also charges a low expense ratio of 0.04%, which means fees won't take a big chunk out of your gains. In order to forecast how much you'll need to save and invest each month to be on track to retire with at least $1 million, you need to consider the number of years you have until retirement, as well as the average return that you'll achieve over that timeframe. You might have some control over the retirement number (in this example, I'm assuming you retire at age 65). But predicting an average return can be challenging, and that can make a significant difference in your overall returns and how much you might need to invest. Historically, the S&P 500 has averaged an annual return of around 10%. For the sake of being conservative, in the table below, I've shown you how much you'll need to invest monthly based on a 10% annual return, and also a 9% return, should the market slow down. Monthly Investment Needed to Get to $1 Million Age Years to Retire Average Annual Growth at 9% Average Annual Growth at 10% 45 20 $1,486 $1,306 40 25 $885 $747 35 30 $542 $439 30 35 $337 $261 Table and calculations by author. These numbers can seem high, but they don't need to be discouraging. You can invest tax refunds, inheritance, investment gains, and any other potential lump sum amounts to help accelerate your portfolio's growth. The more money you have invested, the more it will compound over time, and help you end up with a higher balance in the end. Knowing the amounts you might need can help you create a plan that aligns with your goals, and that doesn't set expectations too high or depend on a best-case scenario. Either way, trying to put aside a regular amount of money into growth-oriented investments can still help you build up a strong portfolio balance by the time you retire, even if you don't end up with $1 million. Before you buy stock in Vanguard Index Funds - Vanguard Growth ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Vanguard Index Funds - Vanguard Growth ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $594,046!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $680,390!* Now, it's worth noting Stock Advisor's total average return is 872% — a market-crushing outperformance compared to 160% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 21, 2025 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms, Nvidia, and Vanguard Index Funds-Vanguard Growth ETF. The Motley Fool has a disclosure policy. Have $0 in Savings? Here's How Much You Should Aim to Invest Each Month If You Want to End Up With a $1 Million Portfolio by Retirement. was originally published by The Motley Fool Sign in to access your portfolio
