Latest news with #VUG
Yahoo
5 days ago
- Business
- Yahoo
1 Unstoppable Vanguard Fund That Can Turn $50,000 Into $1 Million
Key Points The Vanguard Growth Index Fund ETF charges minimal fees to its investors. At the same time, it gives them access to over 160 of the nation's best growth stocks. The fund can be an excellent investment to simply buy and hold for the long run. 10 stocks we like better than Vanguard Index Funds - Vanguard Growth ETF › Picking stocks and staying on top of them can turn into a time-consuming project. But if you don't want to do that, the good news is that a simple buy-and-hold investing strategy can yield great returns all on its own. As long as you diversify your position and focus on top growth stocks, it can be a way to drastically simplify your investing process while still potentially setting you up for some massive gains in the process. What if you were to invest $50,000 into an exchange-traded fund (ETF) that holds growth stocks and just let it sit there for years? If you simply mirror the market's long-run average return of 10%, then you'll more than double your money after a little over seven years. And the longer you stay invested, the larger your gains may end up becoming. One ETF that can give you exposure to some of the best growth stocks in the world and possibly enable you to turn a $50,000 investment into over $1 million is the Vanguard Growth Index Fund ETF (NYSEMKT: VUG). Why the Vanguard Growth Index Fund ETF is an ideal option for the long run Vanguard funds are generally terrific options for long-term investors because they charge minimal fees and usually have excellent diversification. The Vanguard Growth Index Fund is no exception. Its expense ratio is a minimal 0.04%, which is much lower than its yield of around 0.4% -- and the dividend is just a nice bonus. The main reason for investing in the fund is for its growth potential. The ETF focuses on the largest growth stocks in the U.S., and it had 166 holdings as of the end of May. Since it prioritizes growth, it's inevitable that tech will have a big slice of the ETF's portfolio -- that sector accounts for close to 60% of its holdings. That means that there will likely be some variability from one year to the next, but generally, having a significant exposure to tech should help the fund rise in value over the long haul. Big names such as Apple, Nvidia, and Microsoft are among its largest positions, since they are also among the most valuable companies in the world. How the ETF can turn $50,000 into $1 million Here's what the value of a $50,000 investment in the Vanguard fund could grow to over the long haul, if it ends up averaging the S&P 500's long-run average of 10%. Year 10% Growth 10 $129,687 15 $208,862 20 $336,375 25 $541,735 30 $872,470 35 $1,405,122 Data source: Calculations by author. It would take a little less than 32 years for the fund to grow to a value of more than $1 million under these assumptions. If, however, the actual annual return turns out to be more than 10%, then it would get there faster. But if the market slows down and the Vanguard fund grows at a rate of less than 10%, it will end up taking more than 32 years to get to the $1 million mark. Unfortunately, because it's impossible to be able to predict what kind of long-run growth rate the Vanguard fund will average, there's no way to definitely know whether a $50,000 investment in the ETF can ensure you end up with $1 million. But it certainly has the potential to do so. And with strong growth stocks in the fund and low fees, it can put you in a good position to outperform the market over the years. While you may not necessarily want to invest as much as $50,000 into a single ETF, this is the type of fund where a large investment of this size can make sense, given how diverse it is and the quality of stocks it holds. Should you invest $1,000 in Vanguard Index Funds - Vanguard Growth ETF right now? Before you buy stock in Vanguard Index Funds - Vanguard Growth ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Vanguard Index Funds - Vanguard Growth 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 David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Microsoft, Nvidia, and Vanguard Index Funds-Vanguard Growth 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 Unstoppable Vanguard Fund That Can Turn $50,000 Into $1 Million was originally published by The Motley Fool Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
14-07-2025
- Business
- Yahoo
Got $250 a Month? Here's How Much That Could Grow to Over the Next 10, 20, and 30 Years by Investing in This Top Vanguard ETF.
The Vanguard Growth Index Fund ETF is a growth-focused fund that can help investors outperform the market. Regular, monthly investments of $250 into the fund could result in a portfolio that's worth more than $700,000 after a period of 30 years. 10 stocks we like better than Vanguard Index Funds - Vanguard Growth ETF › Investing periodically into the stock market is a good habit to create for a couple of reasons. First, it eliminates the temptation to try and time the market, which can be time-consuming and result in your missing out on gains along the way. Secondly, if it becomes part of your regular budgeting process to set aside a certain amount of money for investing, that can help ensure you are hitting your investing goals without having to worry about building up a big lump sum first. A good amount to aim for may be $250 per month, which translates into $3,000 per year. That can be enough to generate some strong gains over the long haul. And if you can afford to invest more than that, that's even better -- your portfolio balance can get even bigger. Below, however, I'll show you how a $250-per-month investment in a top exchange-traded fund (ETF) can grow over a period of 10, 20, and 30 years. The Vanguard Growth Index Fund ETF (NYSEMKT: VUG) is a great fund to invest in, as it gives you access to some of the best growth stocks in the world, and its fees are low, with an expense ratio of just 0.04%. This allows your portfolio to grow in value without worrying about fees taking a big chunk out of your returns. Since the ETF invests in large growth stocks, you also don't have to worry about having exposure to risky investments. Through the fund, you'll have a position in some of the biggest stocks in the world, including Tesla, Meta Platforms, and Nvidia, which are among its largest holdings. Putting money in the Vanguard Growth Index ETF each month can be a good option for investing over the long haul, given that growth stocks can amass significant gains. While they may sometimes experience significant declines in a bear market, there can be a big payoff from investing in these types of stocks for not just years but decades. The challenge when forecasting what your portfolio may look like over a long time frame is that so much depends on the growth rate and how well the market will do in the future. It's not an easy thing to predict. But given that the long-run average of the market is around 10%, in the table below, I've factored in bearish, bullish, and average market conditions, where your investment grows between a rate of 9% and 11%. Year 9% Growth 10% Growth 11% Growth 10 $48,741 $51,638 $54,747 20 $168,224 $191,424 $218,393 30 $461,119 $569,831 $707,557 Table and calculations by author. As you can see from the table above, there can be a significant difference, in the neighborhood of a couple hundred thousand dollars, between averaging a 9% return over 30 years versus an 11% return. This is why it can be key to focus on growth stocks, which have a higher likelihood than, say, dividend stocks or more value-oriented investments, in outperforming the market. Investing in a fund such as VUG can increase the odds that your return is potentially better than the market average. But regardless of what your actual portfolio ends up becoming, it's clear that investing regularly in the stock market can be a great move for the long term and lead to you being in a stronger financial position in the future. Before you buy stock in Vanguard Index Funds - Vanguard Growth ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Vanguard Index Funds - Vanguard Growth 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 $671,477!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,010,880!* Now, it's worth noting Stock Advisor's total average return is 1,047% — 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 . See the 10 stocks » *Stock Advisor returns as of July 7, 2025 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. David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms, Nvidia, Tesla, and Vanguard Index Funds-Vanguard Growth ETF. The Motley Fool has a disclosure policy. Got $250 a Month? Here's How Much That Could Grow to Over the Next 10, 20, and 30 Years by Investing in This Top Vanguard ETF. was originally published by The Motley Fool
Globe and Mail
29-06-2025
- Business
- Globe and Mail
$1,000 Invested in VUG Could Turn Into $50,000
High-flying growth stocks receive a lot of attention, thanks to their high return potential. However, it doesn't take picking generational companies to make good money in the stock market. Broad exchange-traded funds (ETFs) have shown they can also do the trick with enough time on your side. ETFs allow you to invest in dozens, hundreds, and even thousands of companies with a single investment. And although they may not be as sexy as individual stocks, many go on to outperform the broader market (based on S&P 500 returns). The Vanguard Growth ETF (NYSEMKT: VUG) is a great example of this. Focusing on large-cap growth stocks, VUG has been a rewarding investment and has the potential to turn a $1,000 investment into $50,000 if it continues at its current rate. Stability and growth all mixed into one ETF Large-cap growth stocks have the potential to be the best of both worlds. On the one hand, large-cap companies (those with a market cap of at least $200 billion) typically have established business models, are market leaders, and are in good financial health. This helps provide a bit of stability because these companies have diversified revenue streams and the resources to weather rough times in the economy. On the other hand, these companies are still considered growth stocks because of their strong revenue and earnings growth and their considerable expansion and return potential. Below are the ETF's top 10 holdings: Company Percentage of the ETF Apple 11.61% Microsoft 10.59% Nvidia 9.04% Amazon 6.16% Meta Platforms 4.04% Broadcom 3.44% Alphabet (Class A) 3.24% Tesla 2.95% Eli Lilly 2.93% Alphabet (Class C) 2.63% Data source: Yahoo! Finance. The ETF is a bit top-heavy, but that's because it's weighted by market cap, and megacap tech stocks have skyrocketed in valuation over the past half-decade or so. The tech sector represents over 58% of VUG. How a $1,000 investment can turn into $50,000 This ETF doesn't have superpowers that can turn $1,000 into $50,000 overnight, but it does have returns that can do so if they continue. Since hitting the stock market in January 2004, the VUG ETF has averaged around 10.4% annual returns. Over the past decade, its average annual returns have been an impressive 14.7%. VUG data by YCharts. Using 10% and 14% average annual returns, here's how much a one-time $1,000 investment could go to in different numbers of years: Years Invested 10% Annual Returns 14% Annual Returns 10 $2,580 $3,690 15 $4,150 $7,100 20 $6,670 $13,640 25 $10,730 $26,230 30 $17,260 $50,410 Calculations by author. Values are rounded down to the nearest ten and take into account VUG's expense ratio. Let compound earnings do the hard work for you Anytime your investment grows a few times over, it's a good thing, but the real value is created when you continue contributing to VUG instead of a one-time investment. For the sake of illustration, let's meet in the middle and assume VUG averages 12% annual returns. Here's how your investment could stack up based on how much you add monthly: Years Invested $100 Added Monthly $250 Added Monthly $500 Added Monthly 15 $50,000 $116,900 $228,400 20 $95,600 $224,700 $439,800 25 $175,800 $414,300 $811,900 Calculations by author. Values are rounded down to the nearest hundred and take into account VUG's expense ratio. It's important to remember that these are all assumptions and there's no way to predict how VUG (or any stock) will perform going forward. However, the most important thing this shows is just how effective compound earnings can be at creating wealth in the stock market. What you may lack in a lump sum to invest, you can make up for with consistency and time. Don't underestimate the power of both. Should you invest $1,000 in Vanguard Index Funds - Vanguard Growth ETF right now? Before you buy stock in Vanguard Index Funds - Vanguard Growth ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vanguard Index Funds - Vanguard Growth 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 $713,547!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $966,931!* Now, it's worth noting Stock Advisor 's total average return is1,062% — a market-crushing outperformance compared to177%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 June 23, 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. Stefon Walters has positions in Apple and Microsoft. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, Tesla, and Vanguard Index Funds-Vanguard Growth ETF. The Motley Fool recommends Broadcom and 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.
Yahoo
23-06-2025
- Business
- Yahoo
IWF Is a Great Choice for Most, But I Like VUG ETF Better
IWF and VUG hold top growth stocks. VUG has a much lower ETF expense ratio. VUG has also produced higher returns over its history than IWF. 10 stocks we like better than Vanguard Index Funds - Vanguard Growth ETF › The iShares Russell 1000 Growth ETF (NYSEMKT: IWF) is one of the largest and most popular exchange-traded funds (ETFs) focused on companies growing their earnings at above-average rates. It enables investors to target growth stocks, which can enhance their investment returns. While I think the iShares Russell 1000 Growth ETF is great for most investors seeking to tap into the outsize return potential of growth stocks, I like the Vanguard Growth ETF (NYSEMKT: VUG) better. Here's why. The iShares Russell 1000 Growth ETF and the Vanguard Growth ETF focus on holding companies growing their earnings faster than the market's average. For example, VUG's holdings have grown their earnings at a 27.5% annual rate over the past five years. While both ETFs track growth stocks, there's a subtle difference. The Vanguard Growth ETF tracks an index, the CRSP US Large Cap Growth Index, that holds only large-cap growth stocks, while the iShares Russell 1000 Growth ETF tracks an index, the Russell 1000 Growth Index, that consists of large- and mid-cap stocks. As a result, IWF has more holdings than VUG (392 to 166). However, because both funds have a market weighting, their top holdings are identical with very similar weightings: IWF VUG Microsoft (11.7%) Microsoft (11.3%) Nvidia (11.1%) Nvidia (10.3%) Apple (9.5%) Apple (10.1%) Amazon (6.6%) Amazon (6.3%) Meta Platforms (4.6%) Meta Platforms (4.4%) Broadcom (3.8%) Broadcom (4%) Alphabet Class A (3.4%) Tesla (3.3%) Tesla (3.1%) Alphabet Class A (3.3%) Alphabet Class C (2.8%) Alphabet Class C (2.6%) Eli Lilly (2.2%) Eli Lilly (2.2%) Data sources: BlackRock and The slight difference in allocation is primarily due to the dates of the last available holdings update for these funds. Given that their top 10 holdings -- which comprise nearly 60% of their assets -- are roughly mirror images, you could easily choose either fund for similar exposure to the top growth stocks. While the iShares Russell 1000 Growth ETF and Vanguard Growth ETF have very similar holdings, there are two notable differences. The first one is cost. IWF's ETF expense ratio is 0.19%, while VUG's is much lower at 0.04%. That's due to Vanguard's emphasis on keeping costs low for investors so that they can keep more of the returns generated by its funds. To put the cost difference into perspective, for every $10,000 invested, you'd pay the IWF fund manager $19 annually while only paying $4 per year for VUG. That higher cost will eat into IWF's returns over the long term. Speaking of returns, that's another area where VUG stands out compared to IWF: ETF 1-Year 3-Year 5-Year 10-Year Since Inception IWF 7.6% 9.9% 19.9% 14.9% 7.4% VUG 18.2% 19.9% 17.1% 15.3% 11.5% Data sources: BlackRock and Vanguard. NOTE: IWF fund inception is 5/22/00, while VUG's is 1/26/04. As that table shows, VUG has delivered much higher returns than IWF in every period other than the past five years. That's because larger-cap growth stocks have generally produced higher returns than mid-cap growth stocks in more recent years. That drag and its higher expense ratio have weighed on IWF's returns. The iShares Russell 1000 Growth ETF is a great ETF to buy to increase your portfolio's allocation to faster-growing companies. However, I think the Vanguard Growth ETF is a better option. It provides investors with exposure to most of the same holdings at a lower cost. Its strategy has enabled it to produce higher returns for its investors over the years. That's why I'd pick VUG over IWF to add more growth to your portfolio. Before you buy stock in Vanguard Index Funds - Vanguard Growth ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Vanguard Index Funds - Vanguard Growth 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 $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $881,731!* Now, it's worth noting Stock Advisor's total average return is 994% — 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 23, 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. Matt DiLallo has positions in Alphabet, Amazon, Apple, Broadcom, Meta Platforms, and Tesla and has the following options: short August 2025 $250 calls on Apple. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, Tesla, and Vanguard Index Funds-Vanguard Growth ETF. The Motley Fool recommends Broadcom and 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. IWF Is a Great Choice for Most, But I Like VUG ETF Better was originally published by The Motley Fool
Yahoo
23-06-2025
- Business
- Yahoo
What Are the Best Vanguard ETFs to Buy Now to Retire a Millionaire?
The Vanguard S&P 500 ETF should be a core holding for most investors. The Vanguard Growth and Vanguard Information Technology ETFs are two great options that can help boost returns even more. The key to ETF investing and retiring a millionaire is consistently investing using dollar-cost averaging, which creates wealth over time. 10 stocks we like better than Vanguard S&P 500 ETF › The sooner you start investing, the easier it is to retire a millionaire. The Vanguard family of index exchange-traded funds (ETFs) offers some attractive, low-cost options to help you build a million-dollar portfolio. Here are three of my top choices to start buying right now: The Vanguard S&P 500 ETF (NYSEMKT: VOO), the Vanguard Growth ETF (NYSEMKT: VUG), and the Vanguard Information Technology ETF (NYSEMKT: VGT). All three ETFs have strong long-term track records. However, making an initial investment and sitting back isn't going to build you a million-dollar portfolio. Instead, the key is to consistently invest in these ETFs through what is known as a dollar-cost averaging strategy. With this strategy, you routinely invest a set amount into the ETF(s) of your choice, regardless of how the market is performing. Over time, this could help you retire a millionaire. Let's take a closer look at these three Vanguard ETFs and how they can help you retire a millionaire. The Vanguard S&P 500 ETF is the most popular ETF on the planet, and for good reason. It tracks the performance of the S&P 500, which consists of the 500 largest stocks in the U.S. and is widely considered the benchmark for the U.S. stock market. While other ETFs track the S&P 500's performance, the Vanguard S&P 500 ETF's scant expense ratio of just 0.03% is a big reason why it has grown to become the largest ETF in the world. The immediate diversification that the Vanguard S&P 500 ETF gives you between growth and value stocks, as well as across sectors, is a great reason why it works as a core holding for most investors. The ETF also has a strong performance track record, generating an average annual return of 12.8% over the past 10 years, as of the end of May. With that type of return, you could easily retire a millionaire over time. For example, if you start with a modest $1,000 investment and add $500 a month over the next 30 years, with an average annual return of 12.8%, you'd finish with around a $1.8 million investment. Time, though, is the key. If you only have 20 years to get to $1 million at that return, you'd need to start with $5,000 and make an additional $1,000 investment each month to end up with around $1 million. For investors looking for a bit more juice in their returns, the Vanguard Growth ETF is a great option. The index tracks the performance of the CRSP US Large Cap Growth Index, which is essentially the growth half of the S&P 500. Given the pace of innovation and technological advancements, growth stocks have been helping lead the market higher over the past few decades. This can be seen in the ETF's returns, which have an average annual return of 15.3% over the past decade, as of the end of May. While that may not sound like a big difference compared to the Vanguard S&P 500 ETF, on a cumulative basis, that's a 315.5% return versus 234.2% for the S&P 500 ETF. That adds up a lot over time. For example, at an average annual return of 15.3%, if you initially invest $1,000 and make $500 incremental investments each month, you'd have $3 million after 30 years. If you only have 20 years and want to get to $2 million, you'd need to start with $1,500 and invest an additional $1,500 each month to reach that goal. The Vanguard Information Technology ETF is a great option if you're looking to add more tech exposure. Given its lack of diversity, I'd view it more as a supplementary holding that can help boost returns. However, with the advent of artificial intelligence (AI), it can be a pretty good idea to invest in top tech companies. The Vanguard Information Technology ETF tracks the performance of the MSCI US Investable Market Information Technology 25/50 Index. However, with its top three holdings of Nvidia, Microsoft, and Apple making up about 45% of its portfolio, this is a highly concentrated fund. That said, it's also been the best-performing Vanguard ETF over the past decade, with a 19.8% average annual return as of the end of May. With those kinds of returns, a $500 starting investment plus $500 a month could grow into $1.2 million over 20 years. Of course, past performance isn't a guarantee, and with a concentrated portfolio like this, the risk is higher, too. However, if you're young and have time, this could be a nice addition to your portfolio that could help you retire a millionaire. 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 $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $881,731!* Now, it's worth noting Stock Advisor's total average return is 994% — 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 Geoffrey Seiler has positions in Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Apple, Microsoft, Nvidia, Vanguard Index Funds-Vanguard Growth ETF, 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. What Are the Best Vanguard ETFs to Buy Now to Retire a Millionaire? was originally published by The Motley Fool
