If I Were in My 20s, I'd Buy This Unstoppable Vanguard ETF and Hold It Forever

If you were 20 years old today, consider investing in the Vanguard Morningstar Growth ETF and holding it for the long term. This fund tracks the performance of 146 top growth companies listed on American exchanges, with a heavy focus on technology. Over the past 22 years, this ETF has outperformed the broader S&P 500 index by an average of 1.2 percentage points per year.

The tech sector makes up 69.2% of the fund's assets, with a particular emphasis on AI-driven companies. Nvidia, AMD, and Broadcom are among the fastest-growing AI semiconductor providers, with revenue growth rates of 92%, 107%, and 143% respectively. Companies like Alphabet, Microsoft, and Amazon also rely heavily on AI data center chips for their operations and cloud services.

By investing in the Vanguard Morningstar Growth ETF, you would have accumulated approximately $650,000 more in retirement compared to a 25-year-old who invested the same amount in the S&P 500. The fund rebalances its holdings quarterly, ensuring that it remains focused on the highest-quality growth stocks across various industries. With such a strong track record and a focus on future growth sectors, this ETF could continue to provide significant returns even after retirement.