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If History Repeats, This Unstoppable ETF Can Make You a Millionaire With a $100,000 Initial Investment and $800 Monthly Contributions Over 20 Years
The Motley Foolยท 2025-08-10 07:06
Core Insights - The Vanguard S&P 500 ETF has a strong historical performance, with the S&P 500 index never producing a negative total return over any 20-year period [1][12] - The ETF aims to mirror the performance of the S&P 500 index, which has shown an annualized return of 8.58% over the past 20 years [8][10] - The Vanguard S&P 500 ETF has a lower expense ratio compared to other similar ETFs, which can significantly impact long-term investment returns [16][17] Performance Metrics - The S&P 500 index increased from a closing value of 1,223.13 to 6,340 over the trailing 20-year period, resulting in an annualized return of 8.58% [8] - An initial investment of $100,000 with monthly contributions of $800 could yield over $1,000,000 in 20 years at the same annualized return rate [9] - Historical data shows that all 106 rolling 20-year periods of the S&P 500 produced positive total returns, regardless of market conditions [11][12] Comparison with Other ETFs - The Vanguard S&P 500 ETF has a net expense ratio of 0.03%, significantly lower than the SPDR S&P 500 ETF Trust's 0.09% [16] - The lower expense ratio of the Vanguard ETF can lead to substantial savings over long investment horizons, especially for larger investments [17] - The Vanguard S&P 500 ETF is positioned as a reliable option for investors looking to build wealth over time, compared to other index funds [14][15]