What a $200 Monthly Investment in a Low-Return ETF Looks Like After 25 Years
Key PointsInvesting $200 a month in the SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) for 25 years would turn $60,000 in contributions into roughly $71,100.
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.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
