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12 hours ago
- Yahoo
Can Investing $25,000 in the S&P 500 Today and Holding On for 25 Years Make You Wealthy?
Key Points A buy-and-hold strategy can be a great way to grow your portfolio while also avoiding the temptation to chase trends and risky stocks. The S&P 500 is at record highs, and while it has historically averaged double-digit returns, investors may want to brace for the possibility of lower returns in the future. If you don't think you're on track to meet your investing goals, you may want to consider investing more money or focusing on growth stocks. 10 stocks we like better than SPDR S&P 500 ETF Trust › For not only years, but decades, tracking the S&P 500 has been a reliable way to generate significant stock gains. Since the index tracks the best stocks on the U.S. markets, it offers a great low-risk way to ensure you're positioned for long-term growth. But what if you invested a lump sum of $25,000 into an exchange-traded fund (ETF) that tracks the S&P 500, such as the SPDR S&P 500 ETF (NYSEMKT: SPY), and simply held on for 25 years? Could that be enough to make you wealthy and allow you to retire comfortably? Let's take a look. How much could your portfolio be worth after 25 years? A buy-and-hold strategy can be a good way to ensure your portfolio rises in value. Sometimes, just leaving your portfolio alone can be the best thing you can do for your future. The temptation to chase the latest trends or hot stocks can end up doing more harm than good and derail your investment goals and objectives. If you have a diverse portfolio or if you are invested in the SPDR S&P 500 ETF, a set-it-and-forget-it approach can be a great one to consider deploying. Over time, your investment should rise in value, though there's no guarantee stocks will rise or be up when you need the money. The variable that can have the most significant effect on your overall returns is unfortunately the one that is also nearly impossible to predict: your average annual return. And with the S&P 500 around all-time highs right now, it may be wise to assume that its average returns from here on out may trend a bit lower than its historical average of around 10%. Here's how a $25,000 investment in the SPDR S&P 500 ETF might look like after a period of 25 years, if the average annual return is between 7% and 9%. Year 7% Growth 8% Growth 9% Growth 5 $35,064 $36,733 $38,466 10 $49,179 $53,973 $59,184 15 $68,976 $79,304 $91,062 20 $96,742 $116,524 $140,110 25 $135,686 $171,212 $215,577 Calculations and table by author. A $25,000 investment would grow significantly over the years under this scenario, but with potentially below-average returns, you're not likely to end up with a boatload of money to consider yourself rich, or enough to retire with after 25 years. Your investment might end up growing to more than a couple of hundred thousand dollars and strengthen your overall financial position, but if your goal is to end up wealthy, i.e., having a portfolio worth over $1 million, then this strategy may not be sufficient to get you there. What you can do if you don't think you're on track to hit your goals If you're worried you may not reach your investing goals, there are things you can do to try to achieve better results. Investing more money, even if it's on a monthly basis, can be a way to slowly pad your portfolio's balance over time, and allow more money to be compounded over the years. And the more you invest, the quicker that your gains will accumulate. If that's not an option, what you may also want to consider is focusing more on growth stocks, rather than simply mirroring the market. By investing in tech stocks or companies with promising growth prospects, you may have better chances of outperforming the market and achieving better-than-average returns. This can involve more research and be more time-consuming, but it's an example of where picking individual stocks or simply focusing on ETFs that track growth stocks can be a better option than mirroring the S&P 500. It adds more risk into the equation, but the payoff can be worthwhile in the end. Regardless of what approach you decide to take, it's a good idea to revisit your portfolio on a regular basis to see how you're doing and if you need to recalibrate and adjust your holdings. Should you invest $1,000 in SPDR S&P 500 ETF Trust right now? Before you buy stock in SPDR S&P 500 ETF Trust, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and SPDR S&P 500 ETF Trust 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 $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 180% 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 July 15, 2025 David Jagielski has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Can Investing $25,000 in the S&P 500 Today and Holding On for 25 Years Make You Wealthy? 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
Yahoo
14 hours ago
- Yahoo
Ether ETFs Post Record $726M Daily Inflow as Analysts Signal ‘Deep Demand Shift'
Ether (ETH) exchange traded funds (ETFs) just had their best day ever. The U.S.-listed funds attracted a record $726.74 million in daily net inflows on Wednesday, while ETH prices surged 8.1% to cross $3,560 — the token's best single-day performance since March. That resulted in cumulative ETF inflows of $6.48 billion with total net assets now exceeding $16.41 billion, or 4% of ETH's circulating market capitalization. BlackRock's ETHA led the charge with nearly $500 million in new inflows and over $1.78 billion in trading volume, followed by Fidelity's FETH and Grayscale's newly launched ETH, which added a combined $167 million. But beyond the headline numbers, something deeper may be unfolding. JLabs Digital's Ben Lilly said in a Wednesday insight that a new wave of Digital Asset Treasuries (DATs) — funds and corporates accumulating ETH for yield, collateral, or payments — is changing the token's demand profile. 'We're seeing $100s of millions in ETH demand that simply didn't exist before,' Lilly wrote, pointing to a dynamic similar to PayPal's early crypto push. 'This isn't just inflow-driven price action. It's a structural shift in how ETH is being held.' Add to that a historically strong Moneyness Ratio — a metric capturing the share of ETH locked in productive use — and the market gets a flywheel few other tokens can replicate. ETH network demand still clocks in at around $2 million per day, but analysts suggest it could triple as more applications and treasuries integrate the token. 'Higher from here. Bid on,' Lilly added. ETH is now up 22% month-to-date, and if the demand curve continues to steepen, we may still be far from reaching the peak of this move.
Yahoo
17 hours ago
- Yahoo
1 No-Brainer Vanguard ETF to Invest $1,000 Into This July
Key Points This ETF tracks the performance of the S&P 500, which more than tripled investor capital over the last decade. Investors who buy this ETF don't need to spend time trying to successfully research and pick stocks. Even at record highs, it's a smart idea for investors to consider putting money to work in the stock market. 10 stocks we like better than Vanguard S&P 500 ETF › All investors want to find winning stocks to put money behind, similarly to the best professionals out there. Who doesn't want to allocate capital like billionaires Warren Buffett or Bill Ackman? But for the majority of people, taking a more passive approach makes the most sense. This is easier than ever, thanks to the ample number of exchange-traded funds (ETFs). In fact, Vanguard, the massive asset management firm, has what I believe is a no-brainer option. Here's one ETF to invest $1,000 in this July. Tracking the S&P 500 As the name suggests, the Vanguard S&P 500 ETF (NYSEMKT: VOO) tracks the performance of the S&P 500 (SNPINDEX: ^GSPC). This benchmark, which is the most closely watched barometer of the stock market's performance, contains 500 large and profitable U.S. businesses. It's how many professional money managers assess their own performance over time. By buying the Vanguard S&P 500 ETF, investors are betting on the continued ingenuity that has characterized the American economy. This has historically been a very lucrative perspective to have. The Vanguard S&P 500 ETF gives investors immediate diversification, with exposure to all sectors of the economy. But unsurprisingly, there is a high weighting toward the biggest companies in the market. The top five positions in this ETF are Nvidia, Microsoft, Apple, Amazon, and Meta Platforms, which combined take up 27.2% of the asset base. Impressive performance at a low cost The Vanguard S&P 500 ETF's performance is hard to overlook. In the past decade, it has produced a total return of 254% (as of July 15). A $1,000 investment would've grown into $3,540 during that time. That's a wonderful result that shows the power of compounding. These past gains have been propelled by some key factors. Interest rates have generally been low, which spurs economic activity, as well as helps to grow companies' earnings power. Passive investment vehicles continue to attract a lot of capital, bringing more demand into the stock market. And we've witnessed the rise of powerful tech enterprises that are arguably the best businesses the world has ever seen. Investors also benefit by buying the Vanguard S&P 500 ETF because they don't need to spend time poring over financial statements or listening to earnings calls. It's cheap, with an expense ratio of just 0.03%, and a hassle-free method to start growing your savings. Time in the market matters The S&P 500 has had a choppy year. As of July 15, however, the index is trading in record territory. Investors were concerned about a possible recession amid ongoing trade uncertainty, but the market is now looking much more confident. Many investors are probably wondering why July is a good month to add the Vanguard S&P 500 ETF to their portfolios. After all, wouldn't it be smarter to simply wait for a pullback before putting money to work? Buy low and sell high, as they say. While timing the market seems like the right move, it's extremely difficult to execute successfully. Investors could cause more harm to their portfolios, trading in and out of positions at the wrong time and missing the market's best days. The best thing to do is invest early and often. This is especially true for investors who have a time horizon that spans decades. Even buying at all-time highs won't matter that far into the future. Focus on having the discipline to invest $1,000 in the Vanguard S&P 500 ETF in July. And be ready for the volatility along the way, which is normal. Should you buy stock in Vanguard S&P 500 ETF right now? 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 $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 180% 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 July 15, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, 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. Neil Patel has positions in Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Vanguard S&P 500 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 No-Brainer Vanguard ETF to Invest $1,000 Into This July was originally published by The Motley Fool
