What a $200 Monthly Investment in a Low-Return ETF Looks Like After 25 Years
What does 25 years of $200 monthly investments in the world's most boring ETF actually produce? The answer is more inspiring than you'd think.
Imagine this scenario: investing $200 each month for 25 years in a single, unassuming ETF. The fund in question is the SPDR Bloomberg 1-3 Month T-Bill ETF (NYSEMKT: BIL). This fund is akin to a money market account, holding short-term Treasury bills and providing a small yield. Over its lifetime, BIL's share price has remained nearly flat, focusing on preserving capital rather than generating high returns.
Since its inception in 2007, BIL has delivered an annualized total return of around 1.33%. Over a quarter-century, a mere $60,000 would have been contributed, plus additional $11,100 from reinvested dividends, bringing the total to approximately $71,100. This demonstrates how even small, consistent investments in a low-risk vehicle can yield significant results over time.
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