The SPDR S&P 500 ETF Trust (NYSEMKT: SPY) has historically averaged an annualized return of about 10.5% over the past 30 years, providing investors with exposure to approximately 500 of the largest U.S. companies. Notable top holdings include Microsoft, Nvidia, Apple, Amazon, and Meta Platforms. With an expense ratio of 0.09%, it costs investors little to maintain exposure to the broad market.
Investing $1,000 monthly in SPY for 30 years could yield over $2 million, whereas a single $1,000 investment would grow to approximately $17,500 over the same period, compounding at an annualized rate of 10%. Even without the initial $10,000, saving $1,000 a month could still make one a millionaire in as little as 23 years.
While the ETF is a solid investment option, analysts recommend exploring other stocks as well. The Motley Fool’s Stock Advisor has identified 10 best stocks that could produce significant returns, diverging from SPY’s traditional market tracking.
