If History Repeats, the No. 1 Exchange-Traded Fund (ETF) on Robinhood Can Make Investors Millionaires With a $100,000 Initial Investment and $625 Monthly Contributions Over 20 Years

Core Insights - The Vanguard S&P 500 ETF has consistently outperformed other investment options, with no negative total return over any rolling 20-year period since the start of the 20th century [15] - Retail investors are increasingly favoring ETFs for their ability to provide diversified exposure to various sectors and investment strategies [5][6] ETF Popularity and Performance - ETFs are gaining traction among retail investors, with nine of the 22 most held securities on Robinhood being ETFs, including the Vanguard S&P 500 ETF, which is the most popular [7][6] - The Vanguard S&P 500 ETF aims to closely mirror the performance of the S&P 500, which has shown a trailing 20-year return of 8.93% [8][9] Investment Potential - If an investor were to invest $100,000 initially and add $625 monthly into the Vanguard S&P 500 ETF, they could potentially become a millionaire in 20 years, with an ending balance of over $1 million [9][10] - The SPDR S&P 500 ETF Trust, while also popular, has a higher net expense ratio of 0.09% compared to the Vanguard S&P 500 ETF's 0.03%, making the latter more cost-effective for long-term investors [12][14] Historical Context - Historical data indicates that the S&P 500 has never delivered a negative annualized total return over any rolling 20-year period, reinforcing the Vanguard S&P 500 ETF's status as a reliable investment option for retail investors [15]