Here's Why This ETF Is a Multimillionaire Maker

Core Viewpoint - Investing in the Vanguard Total Stock Market ETF can potentially lead to becoming a multimillionaire through time and compound earnings, emphasizing that significant wealth can be achieved without relying on high-growth individual stocks [1][2]. Group 1: ETF Overview - The Vanguard Total Stock Market ETF provides exposure to over 3,500 stocks across all major sectors and sizes, differentiating it from other indexes like the S&P 500 and Russell 2000, which focus on large-cap and small-cap stocks respectively [3]. - This ETF allows investors to invest in the overall growth of the U.S. stock market rather than concentrating on specific companies or sectors, which has historically proven to be a strong investment strategy [4]. Group 2: Performance and Returns - Since its inception in May 2001, the Vanguard Total Stock Market ETF has averaged annual total returns of 9.4%, with the past decade showing even higher returns averaging 14% annually [5]. - Assuming a long-term average return of 10%, which aligns with the historical average of the S&P 500, the potential for substantial wealth accumulation through consistent investments is highlighted [6]. Group 3: Investment Scenarios - An initial investment of $50,000 with an additional $1,000 monthly contribution could grow to approximately $1,023,600 over 20 years [6]. - If the initial investment is reduced to $25,000, the total after 20 years would be around $855,400, illustrating the power of compound earnings over time [6]. - Further projections indicate that after 25, 30, and 35 years, the investment could grow to $1,721,900, $2,846,300, and $4,657,400 respectively for the $50,000 initial investment scenario [7].