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3 days ago
- Business
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The Stocks That Could Make Your Grandkids Rich as Kings
One of the best ways to amass great wealth is to invest for a very long time. Young people are the ones with the most time. Get your young loved ones started investing as soon as they're able. 10 stocks we like better than Vanguard S&P 500 ETF › We publish a lot of articles on how you might become a millionaire -- and it's true, you could become a millionaire. But young people can aim much higher than that: They could become multimillionaires, because they have a lot more time in which their money can grow for them. Here's a look at a handful of investments that have a lot of room to grow over the coming decades. See if you want to recommend any to your kids or grandkids. It's rarely too early to get your kids investing and on the path to smart money management. First, though, here's a review of how money grows, because it's important to understand what's possible: Growing at 8% for $6,000 invested annually $12,000 invested annually 5 years $38,016 $76,032 10 years $93,873 $187,746 15 years $175,946 $351,892 20 years $296,538 $593,076 25 years $473,726 $947,452 30 years $734,075 $1,468,150 35 years $1,116,613 $2,233,226 40 years $1,678,686 $3,357,372 50 years $3,718,030 $7,436,061 Calculations by author via See? Multimillionaire status is possible! It does take time, though. If your kid or grandkid is, say, 10, they have 50 years until they turn 60, which is a somewhat early age at which they might retire. For compounding to do amazing work, you need three things: time, meaningful investments, and a good growth rate. Simply investing in the S&P 500 can be all you need. Over many decades, it has averaged annual returns close to 10%. I've been a little more conservative in the table above because 10% average returns are not guaranteed. Here, then, are some investments to consider. I'm focusing on exchange-traded funds (ETFs) here, because they're very much stock-like, while also being funds. They trade like stocks, but each of these is invested in an array of companies, offering instant diversification. A low-fee S&P 500 index fund is hard to beat, and even Warren Buffett has recommended it for most people. It will immediately have you invested in 500 of America's biggest companies -- including all of the "Magnificent Seven" -- which are Apple, Amazon, Google parent Alphabet, Facebook parent Meta Platforms, Microsoft, Nvidia, and Tesla. You might cast an even wider net by investing in an index fund that aims to deliver the performance of the total U.S. stock market, or one that tracks the total world stock market. Here are three solid broad-market index funds to consider: Vanguard S&P 500 ETF (NYSEMKT: VOO) Vanguard Total Stock Market ETF (NYSEMKT: VTI) Vanguard Total World Stock ETF (NYSEMKT: VT) The Vanguard S&P 500 ETF has averaged annual gains of about 13% over the past decade, and 16.2% over the past five years. If you want to aim for a little faster growth, consider the Vanguard Growth ETF (NYSEMKT: VUG). It tracks the CRSP U.S. Large Cap Growth Index, which is focused on faster-growing large companies. It recently held 166 stocks, with about half of them in the technology sector and close to 27% divided between the consumer cyclical and communication services sectors. Over the past decade, this ETF has averaged annual gains of 15.5% -- and 17.3% over the past five years. To aim for even fatter returns (while accepting more risk), consider one or two ETFs such as the Technology Select Sector SPDR ETF (NYSEMKT: XLK). It recently held 69 stocks, involved in businesses such as semiconductor equipment, internet software and services, IT consulting services, computers, and peripherals. Over the past decade, this ETF has averaged annual gains of 20.3%, and 20.2% over the past five years. Note, though, that when market downturns happen, as they occasionally do, high-flying growth stocks such as those in ETFs such as these may drop sharply in value -- often recovering eventually. As you aim to help your grandkids (or kids) become multimillionaires, here are some things to keep in mind: Whether you're buying into one of these ETFs or some stocks, buy to hold. That means you keep an eye on the investments, in case some situation develops where selling might be smart. With these broad funds, though, holding for decades is more likely to be safe and effective. Note, too, that the amount invested every year matters a lot. Young people may only manage, say, $100 or $500 per month. But as they grow and enter the workforce, it's important to keep investing and to invest more each year, as they're able. Their earliest invested dollars are the most powerful, as they have the most time in which to grow. They may need to take some of this money out for school or a down payment, but it's good to keep as much as they can growing for their far-off futures. It's also vital to keep inflation in mind. We might think that retiring with $2 million can put us on easy street, but in 50 years, that sum might have the purchasing power of only $400,000 or so. Thus, for best results, young people should aim to invest aggressively. At some point, perhaps as they approach and enter middle age, they may find that their portfolios have grown enough to fund a comfortable retirement. At that point they might just retire, or keep saving and investing, but with a little less urgency. So do your young loved ones a favor, and give them a nudge in the direction of financial independence. Before you buy stock in Vanguard S&P 500 ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Vanguard S&P 500 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 $658,297!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $883,386!* Now, it's worth noting Stock Advisor's total average return is 995% — a market-crushing outperformance compared to 173% 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 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. 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. Selena Maranjian has positions in Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Vanguard Index Funds-Vanguard Growth ETF. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, Tesla, Vanguard Index Funds-Vanguard Growth ETF, Vanguard S&P 500 ETF, and Vanguard Total Stock Market 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. The Stocks That Could Make Your Grandkids Rich as Kings was originally published by The Motley Fool Sign in to access your portfolio
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5 days ago
- Business
- Yahoo
Stock ETFs Up, Oil Down as Israel-Iran Fight Looks Contained
Broad equity ETFs like the Vanguard S&P 500 ETF (VOO) rose amid signs that missile fire between Israel and Iran, which hammered markets last week, won't expand into a wider regional conflict as feared. Oil funds dropped after last week's jump. VOO and the SPDR Dow Jones Industrial Average ETF Trust (DIA) added 1.1% around noon. Both dropped Friday following Israel's bombardment aimed at crippling Iran's nuclear-enrichment capabilities. Crude oil prices fell after a previous surge as fighting entered a fourth day, and the United States Oil Fund LP (USO) declined 3.5%. USO Net Fund Flows—Source: FactSet Fears of the war spreading beyond Iran and Israel appeared to modulate, as the Wall Street Journal reported Iran has reached out to Arab officials and told them it wishes to end the fighting and resume nuclear disarmament talks. Israel, which began bombing Iran after the Persian nation vowed to continue enriching uranium following its censure by the International Atomic Energy Agency, has said the attacks may continue for many more days. Defense ETFs advanced, with the iShares U.S. Aerospace & Defense ETF (ITA) adding 0.3% and the Select STOXX Europe Aerospace & Defense ETF (EUAD) jumping 1%. Tech ETFs rebounded, with the Invesco QQQ Trust (QQQ) rising 1.4% and the VanEck Semiconductor ETF (SMH) adding 2.8%. Shipping rates rose further, Reuters reported, on concerns the violence will force tankers out of the critical Strait of Hormuz shipping lane and into longer routes. The Breakwave Tanker Shipping ETF (BWET), which tracks futures contracts in the crude-oil-shipping market, soared for a second day, adding nearly 17% at Monday's high before cooling off. Israel ETFs reversed Friday's declines. The iShares MSCI Israel ETF (EIS) jumped 5.9%, and the ARK Israel Innovative Technology ETF (IZRL) rose 3.9%. Investors pulled a net $4.2 million from EIS Friday. Both the iShares 20+ Year Treasury Bond ETF (TLT) and the iShares 7-10 Year Treasury Bond ETF (IEF) dipped | © Copyright 2025 All rights reserved
Yahoo
5 days ago
- Business
- Yahoo
Stock ETFs Up, Oil Down as Israel-Iran Fight Looks Contained
Broad equity ETFs like the Vanguard S&P 500 ETF (VOO) rose amid signs that missile fire between Israel and Iran, which hammered markets last week, won't expand into a wider regional conflict as feared. Oil funds dropped after last week's jump. VOO and the SPDR Dow Jones Industrial Average ETF Trust (DIA) added 1.1% around noon. Both dropped Friday following Israel's bombardment aimed at crippling Iran's nuclear-enrichment capabilities. Crude oil prices fell after a previous surge as fighting entered a fourth day, and the United States Oil Fund LP (USO) declined 3.5%. USO Net Fund Flows—Source: FactSet Fears of the war spreading beyond Iran and Israel appeared to modulate, as the Wall Street Journal reported Iran has reached out to Arab officials and told them it wishes to end the fighting and resume nuclear disarmament talks. Israel, which began bombing Iran after the Persian nation vowed to continue enriching uranium following its censure by the International Atomic Energy Agency, has said the attacks may continue for many more days. Defense ETFs advanced, with the iShares U.S. Aerospace & Defense ETF (ITA) adding 0.3% and the Select STOXX Europe Aerospace & Defense ETF (EUAD) jumping 1%. Tech ETFs rebounded, with the Invesco QQQ Trust (QQQ) rising 1.4% and the VanEck Semiconductor ETF (SMH) adding 2.8%. Shipping rates rose further, Reuters reported, on concerns the violence will force tankers out of the critical Strait of Hormuz shipping lane and into longer routes. The Breakwave Tanker Shipping ETF (BWET), which tracks futures contracts in the crude-oil-shipping market, soared for a second day, adding nearly 17% at Monday's high before cooling off. Israel ETFs reversed Friday's declines. The iShares MSCI Israel ETF (EIS) jumped 5.9%, and the ARK Israel Innovative Technology ETF (IZRL) rose 3.9%. Investors pulled a net $4.2 million from EIS Friday. Both the iShares 20+ Year Treasury Bond ETF (TLT) and the iShares 7-10 Year Treasury Bond ETF (IEF) dipped | © Copyright 2025 All rights reserved 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
Yahoo
14-06-2025
- Business
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Warren Buffett Says to Buy This Vanguard ETF. It Could Turn $1,000 Per Month Into $245,000 in 10 Years.
Warren Buffett believes most investors should choose a low-cost index fund. Patience, consistency, and discipline could turn relatively small, regular investments into a hefty portfolio balance over time. Besides strong performance, investors should consider the time commitment required, as well as the expense ratio. 10 stocks we like better than Vanguard S&P 500 ETF › Top fund managers consistently select individual stocks to build high-performing portfolios. While individual investors often believe they can do the same, and some actually might, the vast majority of people aren't as skilled at stock selection. Here's where the recommendation of Warren Buffett comes into play. The Oracle of Omaha suggests the right course of action for most people is to simply invest their money in a low-cost index fund, particularly one that tracks the performance of the broad market S&P 500 index. One exchange-traded fund (ETF) of this type that comes to mind is the Vanguard S&P 500 ETF (NYSEMKT: VOO). Investors who choose this path and follow it consistently put themselves in a position to be rewarded over time. For example, investing just $1,000 per month in this ETF could result in a portfolio balance of $245,000 in 10 years. Here's what you need to know. In the past decade, the Vanguard S&P 500 ETF has produced a total return of 244%, with dividends reinvested. That's a fantastic outcome, likely buoyed by huge capital inflows into passive investment options over active strategies, generally solid economic growth, and the rise of several dominant tech enterprises. That trailing 10-year gain puts its compound annual growth rate at about 13% -- well ahead of the market's long-run average of 10% annually. For the sake of this article, let's assume that the next 10 years will resemble the last decade when it comes to returns. Of course, nothing is guaranteed, and the future is inherently unpredictable. But if you invest $1,000 per month between now and 2035 (for a total of 120 investments), you'd have around $245,000 in a decade. This is the power of dollar-cost averaging. You might think that to succeed as an investor, you have to make decisions like a pro and try to correctly time the market. The intention of buying low, selling high, and repeating the process sounds good in theory. However, it's virtually impossible to do well on a consistent basis. That's why a dollar-cost averaging approach makes the most sense: If you add more money to your portfolio consistently at regular intervals, you can be assured that you're taking advantage of the inevitable ups and downs of the market. Knowing that $1,000 per month can end up becoming $245,000 should be enough to get any investor excited about putting money to work in the stock market. There are other clear benefits to adopting this no-brainer strategy. For one, there's a strong chance the portfolio will beat a majority of the experts. Data shows that the performances of most actively managed funds lag the S&P 500 over long stretches of time. This doesn't prevent fund managers from charging high fees that further eat away at the returns of their investors. The Vanguard S&P 500 ETF, on the other hand, has an expense ratio of just 0.03%. That's a charge of $3 a year for every $10,000 a person has invested in the fund. That's hard to beat. Another benefit is that this is a hassle-free approach. Investors don't need fancy degrees or certifications, expert financial analysis skills, or hours of free time every week to listen to earnings calls. Putting money into the Vanguard S&P 500 ETF on a monthly basis is essentially an automatic investment allocation. It couldn't be simpler. It instantly provides investors with broad diversification into 500 of the largest U.S. companies. The ETF has exposure to all sectors, from technology and financial services businesses to energy and utilities. It's a bet on the growth of the American economy and on the premise that it will continue doing what it has always done. This seems like a smart bet to make. Buying $1,000 worth of the Vanguard S&P 500 ETF every month should put you on the path to building your wealth in the next decade and beyond. Before you buy stock in Vanguard S&P 500 ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Vanguard S&P 500 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 Neil Patel has positions in Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Vanguard S&P 500 ETF. The Motley Fool has a disclosure policy. Warren Buffett Says to Buy This Vanguard ETF. It Could Turn $1,000 Per Month Into $245,000 in 10 Years. was originally published by The Motley Fool
Yahoo
13-06-2025
- Business
- Yahoo
VOO Attracts $14.3B as Assets Flow Out of IVV
The Vanguard S&P 500 ETF (VOO) pulled in $14.3 billion on Thursday, boosting assets under management to nearly $685 billion, according to data provided by FactSet. The massive inflows came as the S&P 500 rose 0.4% after Oracle Corp. (ORCL) surged 13% on strong earnings and AI-driven cloud growth projections, lifting the entire tech sector. The SPDR S&P 500 ETF Trust (SPY) attracted $992.2 million, while the SPDR Portfolio S&P 500 ETF (SPLG) gained $735.7 million. The Invesco QQQ Trust (QQQ) collected $585.6 million, and the SPDR Gold Shares (GLD) pulled in $398.9 million. The iShares Core S&P 500 ETF (IVV) saw massive outflows of $15.6 billion. The Financial Select Sector SPDR Fund (XLF) lost $494.5 million, while the Vanguard FTSE Pacific ETF (VPL) experienced outflows of just under $353 million. U.S. equity ETFs collected $1.6 billion in net inflows, while U.S. fixed-income ETFs gained $741.4 million. Commodities ETFs attracted $456.8 million, and international fixed-income ETFs pulled in $413.8 million. Overall, ETFs gained $3.6 billion for the day. Ticker Name Net Flows ($, mm) AUM ($, mm) AUM % Change VOO Vanguard S&P 500 ETF 14,308.98 684,988.72 2.09% SPY SPDR S&P 500 ETF Trust 992.21 619,278.67 0.16% SPLG SPDR Portfolio S&P 500 ETF 735.66 70,609.37 1.04% QQQ Invesco QQQ Trust Series I 585.58 339,957.43 0.17% GLD SPDR Gold Shares 398.88 100,394.45 0.40% EEMA iShares MSCI Emerging Markets Asia ETF 349.45 991.45 35.25% ARKK ARK Innovation ETF 231.76 6,514.59 3.56% VCIT Vanguard Intermediate-Term Corporate Bond ETF 204.23 53,759.46 0.38% BND Vanguard Total Bond Market ETF 174.38 128,958.64 0.14% ETHA iShares Ethereum Trust ETF 163.64 4,544.54 3.60% Ticker Name Net Flows ($, mm) AUM ($, mm) AUM % Change IVV iShares Core S&P 500 ETF -15,590.21 575,266.50 -2.71% XLF Financial Select Sector SPDR Fund -494.45 49,077.98 -1.01% VPL Vanguard FTSE Pacific ETF -352.97 7,673.29 -4.60% PTIR GraniteShares 2x Long PLTR Daily ETF -334.17 501.26 -66.67% XLV Health Care Select Sector SPDR Fund -223.96 34,688.14 -0.65% XLI Industrial Select Sector SPDR Fund -223.52 21,115.47 -1.06% BIL SPDR Bloomberg 1-3 Month T-Bill ETF -187.65 43,881.01 -0.43% XBI SPDR S&P BIOTECH ETF -179.35 4,760.22 -3.77% SIXJ AllianzIM U.S. Large Cap 6 Month Buffer10 Jan/Jul ETF -151.88 151.88 -100.00% SOXL Direxion Daily Semiconductor Bull 3x Shares -143.99 12,627.45 -1.14% Net Flows ($, mm) AUM ($, mm) % of AUM Alternatives -6.38 10,016.15 -0.06% Asset Allocation 16.88 25,214.34 0.07% Commodities ETFs 456.77 216,970.53 0.21% Currency 391.67 149,406.00 0.26% International Equity 370.23 1,833,578.01 0.02% International Fixed Income 413.81 295,457.81 0.14% Inverse 58.14 14,421.98 0.40% Leveraged -406.16 125,814.83 -0.32% US Equity 1,548.04 6,929,340.32 0.02% US Fixed Income 741.41 1,669,228.37 0.04% Total: 3,584.40 11,269,448.34 0.03% Disclaimer: All data as of 6 a.m. Eastern time the date the article is published. Data are believed to be accurate; however, transient market data are often subject to subsequent revision and correction by the | © Copyright 2025 All rights reserved 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
