Choosing stocks and staying on top can become a time -consuming project. But if you don’t want to do this, the good news is that a simple investment and hold strategy can lead to a great return on its own. While diversifying your position and focusing on the highest growth reserves, this can be a way to dramatically simplify the investment process, while potentially setting you for some massive profits in the process.
What if you need to invest $ 50,000 in a stock market (ETF) fund that holds the growth stock and just let it sit there for years? If you just look at the long -standing market of 10%, then you will double your money in just over seven years. And the longer you stay invested, the more your profits can become.
An ETF that can give you exposure to some of the best growth reserves in the world and possibly allow you to turn $ 50,000 in more than $ 1 million, is Vanguard ETF ETF Growth Index Fund (Nysemkt: vug)S
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Vanguard funds are generally great options for long -term investors as they charge minimal fees and usually have excellent diversification. Vanguard growth index Fund is no exception. Its cost coefficient is a minimum of 0.04%, which is much smaller than about 0.4% – and dividend is just a nice bonus.
The main reason for investing in the Fund is its potential for growth. ETF focuses on the largest growth reserves in the United States and it has had 166 appearances since the end of May. As it prioritizes growth, it is inevitable that the technology has a large part of the ETF portfolio – this sector represents nearly 60% of its participation.
This means that there will probably be some variability from one year to the next, but overall, having a significant exposure to technology should help the value of the fund through the long road. Big names like Apple., Nvidiaand Microsoft are among his biggest positions as they are also among the most valuable companies in the world.
Here’s the value of an investment of $ 50,000 in the Vanguard Fund over the long road if it is ultimately average average average 10%of 10%.
Year
10% growth
10
$ 129,687
15
$ 208 862
20
336 375 dollars
25
541 735 dollars
30
$ 872 470
35
$ 1,405,122
Data Source: Author calculations.
It will take a little less than 32 years to allow the fund to grow to a value of over $ 1 million below these assumptions. However, if the actual annual return turns out to be more than 10%, it will get there faster. But if the market is delayed and the Vanguard Fund is increasing at less than 10%, it will eventually take more than 32 years to reach a $ 1 million sign.
Unfortunately, since it is impossible to predict what kind of long -term growth rate will be the average Vanguard Fund, there is no way to find out if the $ 50,000 investment in ETF can guarantee that you will be over with $ 1 million. But there is certainly the potential to do so. And with strong reserves of growth in the fund and low fees, it can put you in a good position to outperform the market over the years.
Although you do not have to want to invest up to $ 50,000 in one ETF, this is the type of fund where a large investment of this size can make sense, given how diverse and the quality of the shares it holds.
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David Jagielski has no position in any of the mentioned shares. Motley Fool has positions and recommends Apple, Microsoft, NVIDIA and Vanguard Index Funds-Vanguard Growth ETF. Motley Fool recommends the following options: Long January 2026. $ 395 Microsoft calls and short January 2026 $ 405 Microsoft calls. Motley Fool has a policy of disclosure.
1 irresistible Vanguard fund, which could turn $ 50,000 into $ 1 million, was originally published by Motley Fool
