Investment Potential of Vanguard ETFs
Investing $400 monthly in exchange-traded funds (ETFs) could lead to a portfolio worth $1 million in approximately 31 years, assuming a 10% annual return in line with the S&P 500’s historical average. Notably, the Vanguard Russell 1000 Growth ETF (NASDAQ: VONG) and the Vanguard Information Technology ETF (NYSEMKT: VGT) are highlighted as strong options for long-term investors, focusing on growth-focused U.S. stocks.
The Vanguard Russell 1000 Growth ETF comprises nearly 400 stocks, with a 60% allocation to technology. Its expense ratio stands at just 0.06%, helping to minimize long-term investment costs. Meanwhile, the Vanguard Information Technology ETF holds 320 stocks, with leading companies like Nvidia, Apple, and Microsoft making up 45% of its portfolio.
Both ETFs present substantial growth potential but may carry short-term risks, especially within the tech sector. Long-term investors are advised to consider these funds for their ability to achieve market-beating returns, potentially accelerating the path to a million-dollar portfolio.
