Is This Unstoppable ETF a Multimillionaire-Maker?
The Motley Fool·2025-12-03 10:30

Core Insights - Investing in the stock market, particularly through exchange-traded funds (ETFs), can significantly enhance net worth over time [1] - Each ETF has unique advantages and disadvantages, and the right fund can balance risk and reward, potentially leading to substantial earnings [2] Small-Cap Stocks - Small-cap stocks are defined as those with a market capitalization between $300 million and $2 billion, offering higher growth potential despite increased volatility compared to large-cap stocks [3] - Investing in a small-cap ETF, such as the iShares Core S&P 500 Small-Cap ETF (IJR), can help mitigate risks associated with smaller companies through diversification across 639 U.S. stocks from various sectors [5] Performance and Investment Strategy - The iShares Core S&P 500 Small-Cap ETF has achieved an average annual return of 9.49% since its inception in 2000, with a better performance of 12.86% over the last five years [6] - To accumulate a portfolio of $2 million, the required monthly investment varies based on expected average returns, ranging from $175 to $2,000 depending on the investment horizon and return rate [6] Growth Potential - Small-cap stocks within the ETF have the potential for explosive growth, and if any stocks become high performers, they could yield significantly higher returns [7] - Early and consistent investment in a small-cap ETF can lead to substantial wealth accumulation over time [7]

Is This Unstoppable ETF a Multimillionaire-Maker? - Reportify