The Potential of the Vanguard S&P 500 ETF: A Path to Becoming a Millionaire?

The world of fund investments is known for its often high fees, which can erode returns. However, the Vanguard S&P 500 ETF scores here with an extremely low expense ratio of just 0.03%. This allows investors to retain nearly all their returns. But can this ETF actually grow to a fortune of one million dollars? A look at the past ten years shows that the Vanguard S&P 500 ETF achieved an average annual return of 13.3%, equivalent to a cumulative return of 249.7%. If you had invested $20,000 ten years ago, it would be worth about $70,530 today. Since its inception in September 2010, the ETF has even recorded an average annual return of 14.7%, which would have grown the same $20,000 investment to approximately $136,820 today. However, that's not a million – but patience pays off: With a continued average return of 14.7% over three decades, a $20,000 investment could grow to $1.22 million. The key lies in consistency and regular investing. For those who don't want to wait that long, monthly investments, such as $1,000 or $2,000, could achieve the million-dollar mark significantly faster – in about 17 or 13 years, respectively. However, past performance is no guarantee of future results, especially considering market volatility. The insight for investors is clear: starting early and consistency are essential for building wealth in the long term. Even with a decrease in the average return to 12%, a 30-year strategy with a consistent contribution pattern could lead to a seven-figure amount. Given the currently high market level, the motivation to enter might decline. However, as studies from J.P. Morgan show, an investment on the day of an all-time high is just as profitable in the long term as on any other day. Should investors therefore invest in the Vanguard S&P 500 ETF now? Before making this decision, it is worth also considering other attractive stock ideas that, according to experts, could offer high returns in the near future.