Why I Will Never Sell This Growth ETF in My Retirement Account

Core Viewpoint - Growth ETFs, particularly the Vanguard Growth ETF, are highlighted as effective investment vehicles for generating significant wealth over time, especially for long-term investors aiming for retirement or financial stability [1][2]. Group 1: Vanguard Growth ETF Overview - The Vanguard Growth ETF consists of 160 large-cap stocks, which are generally more stable and less volatile compared to smaller companies, thus helping to mitigate risk [3]. - The ETF's top three holdings—Apple, Nvidia, and Microsoft—account for nearly one-third of the portfolio, providing a balance of risk and reward through diversification with over 100 other stocks [4]. Group 2: Performance and Returns - Since its inception in 2004, the Vanguard Growth ETF has achieved an average annual return of approximately 12%, surpassing the historical market average of 10% [7]. - A hypothetical investment of $200 per month could lead to significant portfolio growth over time, with projections showing values of $1,036,000 after 35 years at a 12% average annual return [7]. Group 3: Investment Strategy - Growth ETFs tend to be less consistent than broad-market funds like S&P 500 ETFs, often experiencing greater volatility during economic downturns but potentially outperforming during prosperous times [6]. - A long-term investment perspective is essential for growth ETFs, as they are more likely to yield better returns compared to broad-market counterparts over a decade or two [6].