How Vanguard ETFs Can Turn Small Investments Into Millions Over Time
Investing in exchange-traded funds (ETFs) has become a straightforward way to grow wealth over time. With the right strategy, even modest contributions can build into substantial sums—potentially enough to retire as a millionaire. ETFs offer a simple entry point, as they trade like stocks while providing broad market exposure.
ETFs bundle many stocks or bonds into a single investment, making diversification easy. Many also come with lower expense ratios than mutual funds, particularly those that track market indices. Vanguard, a leader in low-cost index investing, offers several popular options with strong long-term returns.
The Vanguard S&P 500 ETF (VOO) has delivered an average annual return of 14.55% over the past five years, alongside a recent dividend yield of 1.13%. Similarly, the Vanguard Total Stock Market ETF (VTI) has averaged 13.12% annually, with a dividend yield of 1.12%. For global exposure, the Vanguard Total World Stock ETF (VT) offers an 11.10% five-year return and a 1.83% yield. Investors seeking steady income might consider the Vanguard Total Bond Market ETF (BND), which yields 3.86% but has a lower five-year return of 1.95%. Meanwhile, the Vanguard Dividend Appreciation ETF (VIG) focuses on companies with growing dividends, yielding 1.62% and averaging 11.69% annual growth. While ETFs cover a wide range of assets, niche markets like concert tickets remain outside their scope. Vanguard does not offer funds targeting live events or ticketing companies, as these are considered illiquid and speculative. Instead, broad market ETFs like VOO or VTI remain the go-to for diversified equity exposure.
ETFs provide a simple, cost-effective way to invest in markets worldwide. With consistent contributions and time, even small investments can grow significantly. Vanguard’s range of low-fee funds makes it easier for investors to build long-term wealth without complex strategies.
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