The Motley Fool·2025-10-22 00:05Core Insights - Transforming an initial investment of $10,000 into $12 million is feasible with time, strong growth ETFs, and consistent dollar-cost averaging [1][2] Investment Strategy - An initial investment of $10,000 with an additional $2,000 monthly for 30 years can yield over $12.5 million at a 15.3% average annual return, which reflects the S&P 500's performance over the past decade [2] - The S&P 500's return profile is expected to remain stable over the coming decades unless there are significant changes in the American economy [2] ETF Performance - The Invesco QQQ Trust has outperformed the S&P 500 with a cumulative return of 536.4% (20.3% annual) over the past decade, compared to the S&P's 315.3% (15.3% annual) [5] - The Invesco QQQ Trust has consistently outperformed the S&P 500 more than 87% of the time on a rolling-12-month basis, indicating stable performance [6] - The Vanguard Growth ETF has also outperformed the S&P 500, achieving an 18% annual return over the past decade, while the Vanguard Value ETF only provided a 12.1% annual gain [8] Sector Focus - The Vanguard Information Technology ETF focuses solely on technology stocks, with significant holdings in Nvidia, Apple, and Microsoft, which together account for nearly 44% of the ETF [10] - This concentration in high-performing tech stocks has resulted in an average annual return of 23.4% for the Vanguard Information Technology ETF over the past decade [11] Long-term Potential - A hypothetical investment in the Vanguard Information Technology ETF at a 23.4% return could grow to $67.5 million over 30 years with the same initial and monthly contributions [12] - Investing in growth-oriented ETFs with a strong tech focus is a solid long-term strategy, allowing for automated investment without the need for individual stock selection [13]