2 Top Vanguard ETFs That Can Turn $350 per Month Into $1 Million in 33 Years

Core Insights - The article emphasizes the potential of investing in exchange-traded funds (ETFs) for long-term wealth accumulation, specifically highlighting the possibility of reaching $1 million by investing $350 monthly over 33 years [1][7]. Group 1: Vanguard ETFs - Vanguard ETFs are recommended for long-term investors due to their low fees and good diversification, making them relatively safe options [2]. - The Vanguard Information Technology Index Fund ETF (VGT) and the Vanguard Growth Index Fund ETF (VUG) are identified as top growth-focused funds [2][8]. Group 2: Vanguard Information Technology Index Fund ETF (VGT) - VGT has a low expense ratio of 0.09% and includes a broad mix of 314 tech stocks, covering various sectors such as application software and semiconductors [4]. - Over the past decade, VGT has generated total returns of 681%, averaging a compound annual growth rate (CAGR) of just under 23% [6]. - Even with a conservative long-term return estimate of 10%, a $350 monthly investment in VGT could grow to approximately $1.1 million after 33 years [7]. Group 3: Vanguard Growth Index Fund ETF (VUG) - VUG has a slightly lower management fee of 0.04% and focuses on growth stocks across various industries, with 62% of its 160 holdings in tech [8][9]. - The ETF has achieved total returns of 395% over the past decade, averaging a CAGR of more than 17% [10]. - VUG offers more diversification compared to VGT, which may appeal to investors concerned about potential tech stock volatility [9]. Group 4: Investment Considerations - Both VGT and VUG are considered solid long-term investment options, with expectations that they can generate returns at least on par with the historical performance of the S&P 500 [11]. - The choice between these ETFs may depend on an investor's risk tolerance and preference for tech exposure [12].