These 3 Unstoppable ETFs Could Build a Million-Dollar Portfolio With Little Effort on Your Part. Here's How.
It just takes two things to make your money grow.
Building a million-dollar portfolio might sound like an ambitious goal, but it's achievable with a patient and persistent approach. The secret lies in regular contributions to a few well-diversified exchange-traded funds (ETFs), rather than attempting to pick individual stocks amidst volatility. ETFs, which trade like stocks yet offer diversification, can mitigate risk while harnessing long-term gains.
In this scenario, three ETFs stand out: the Invesco QQQ Trust (QQQ), the Vanguard Information Technology ETF (VGT), and the iShares Russell 1000 ETF (IWB). The QQQ invests in the Nasdaq-100, primarily tech stocks, with a history of about 13% annual returns over 25 years. Contributing $100 monthly to a $5,000 investment could yield around $304,000 in 25 years.
The VGT, similar to the QQQ but with a broader tech sector coverage, has averaged 15% annual returns over 22 years. Investing $5,000 with $100 monthly contributions could accumulate around $437,000. Lastly, the iShares Russell 1000 ETF, which includes mid-sized and large-cap stocks, outperformed the S&P 500 ETF over 25 years with a 10.1% average annual return. Investing this ETF with the same $5,000 initial amount and monthly contributions could yield approximately $177,000.
In total, a combined investment of $15,000 in these three ETFs could potentially build a million-dollar portfolio in 25 years, provided you maintain patience and consistent contributions. This strategy offers a simple and effective way to grow your wealth over the long term.
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