Where Will VTI Be in 20 Years? Here's What History Suggests

Low-cost index funds offer an affordable way for the average investor to gain exposure to the entire U.S. stock market. Vanguard's Morningstar Total Stock Market ETF (VTI) is a standout option, holding 3,519 individual U.S. stocks and spanning small, mid, and large-cap companies. Operating since May 2001, VTI has consistently delivered annualized returns of 9.44%, slightly below the S&P 500's 9.98% since 1928, but still a solid rate for long-term growth.

To illustrate, if you invested $10,000 in VTI today and let it compound at its historical 9.44% annualized return over the next 20 years, your investment would be worth $60,747. Alternatively, investing $500 per month in VTI, earning the same average return, would result in $322,542 after two decades. Even if VTI's returns decline to 5%, 15%, or even negative in the coming years, the power of consistent investing over time will still yield significant gains.

However, it's essential to remember that past performance is no guarantee of future results. Market conditions can change, and VTI's returns may fluctuate. Nonetheless, the long-term historical average of 9.44% highlights the immense potential of time and consistent investing in VTI for wealth creation.