Key Points

• The S&P 500 has rebounded to reclaim new highs.

• However, that doesn't mean investors should wait for a pullback.

• Vanguard offers a number of great ETFs for investors to begin investing in right now.

• 10 stocks we like better than Vanguard S&P 500 ETF ›

When the market is on a tear, it's tempting to sit back and wait for a pullback. But smart investors know that the best strategy isn't timing the market -- it's time in the market.

The market hitting new highs actually isn't uncommon. In fact, a J.P. Morgan study found that since 1950, the S&P 500 hit a new high on about 7% of its trading days. Meanwhile, on nearly a third of the days it hit a new high, it never traded below that price again.

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That's why dollar-cost averaging is so important. And one of the best investment vehicles to use this strategy with is exchange-traded funds (ETFs). By consistently investing in high-quality ETFs, regardless of market swings, you give yourself the best shot at building serious long-term wealth.

With some of the lowest expenses in the industry, Vanguard ETFs are a no-brainer place to start. Let's look at three Vanguard ETFs to begin buying into for the long term.

1. Vanguard S&P 500 ETF

If you're going to own just one ETF, the Vanguard S&P 500 ETF (NYSEMKT: VOO) is the one. The ETF gives you instant exposure to the 500 largest U.S. companies. That includes the biggest winners of the past decade, including Apple, Microsoft, Nvidia, Alphabet, and Amazon. These five stocks alone make up nearly 25% of the index.

What makes this ETF such a great core holding is how it adapts over time. When winners emerge, they just become a larger part of the index. The index leans into the Darwinian principle of survival of the fittest, letting the strongest stocks lead the way higher while laggards fall by the wayside.

This investment mechanism works and is backed by the Vanguard S&P 500 ETF's strong track record of returns. Over the past 10 years, the ETF has generated an average annual return of 13.6% -- a period that has included both strong bull and bear markets along the way.

As an added bonus, the ETF's expense ratio is just 0.03%. This means most of the index's returns stay in your pocket. If your goal is to build long-term wealth, you won't find a more efficient or reliable option.

2. Vanguard Growth ETF

For investors who want more exposure to the market's top growth stocks, the Vanguard Growth ETF (NYSEMKT: VUG) is a great option. This ETF focuses on large-cap companies with strong earnings and sales growth, and that naturally skews the portfolio toward tech and consumer names. While it officially tracks the CRSP US Large Cap Growth Index, this is essentially the growth side of the S&P 500.

The ETF holds about 165 stocks, so you're still getting diversification, but it's solely focused on large-cap growth stocks. It has many of the same top holdings as the Vanguard S&P 500 ETF, but in a higher concentration. For example, while Nvidia represented a 7.3% position in the Vanguard S&P 500 ETF at the end of June, it was an 11.6% holding in the Vanguard Growth ETF.

With growth outperforming value for a long stretch over the past couple of decades, this ETF has been a strong performer. It has produced an annual average return of 16.2% the past 10 years. That outpaces the broader market and gives you more upside if big tech and other growth leaders keep running. With an expense ratio of 0.04%, it's a cheap way to invest in large-cap growth stocks without having to pick individual names.

If you want to lean into growth, this is a great way to do it.

3. Vanguard Information Technology ETF

If you want to go even deeper into tech, the Vanguard Information Technology ETF (NYSEMKT: VGT) gives you a more concentrated portfolio of the companies helping shape the future. The ETF owns the top players in semiconductors, software, cloud computing, and most importantly, artificial intelligence (AI). With AI changing the world we live in, this is a great way to invest in this trend.

The portfolio is top-heavy, with Apple, Nvidia, and Microsoft making up nearly 45% of its holdings as of the end of June. But the ETF also gives investors exposure to companies like Broadcom, Palantir Technologies, and Advanced Micro Devices in its top-10 holdings, as well. These are some of the top companies that have been leading the charge with AI.

Meanwhile, the ETF's performance has been nothing short of exceptional. Over the past 10 years, it's generated an average return of 21.4% annually. It also has a low expense ratio of just 0.09%. Given its top heaviness and lack of diversification, this would not be the only ETF I'd own, but it's a great way to help potentially juice your returns and beat the market.

Overall, this ETF is for investors who believe the technology tailwinds, especially around AI, aren't slowing down anytime soon.

Should you invest $1,000 in Vanguard S&P 500 ETF right now?

Before you buy stock in Vanguard S&P 500 ETF, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vanguard S&P 500 ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,056,790!*

Now, it’s worth noting Stock Advisor’s total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 15, 2025

JPMorgan Chase is an advertising partner of Motley Fool Money. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Geoffrey Seiler has positions in Alphabet and Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Apple, JPMorgan Chase, Microsoft, Nvidia, Palantir Technologies, Vanguard Index Funds-Vanguard Growth ETF, and Vanguard S&P 500 ETF. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

High-flying growth stocks receive a lot of attention, thanks to their high return potential. However, it doesn't take picking generational companies to make good money in the stock market. Broad exchange-traded funds (ETFs) have shown they can also do the trick with enough time on your side.

ETFs allow you to invest in dozens, hundreds, and even thousands of companies with a single investment. And although they may not be as sexy as individual stocks, many go on to outperform the broader market (based on S&P 500 returns). The Vanguard Growth ETF (NYSEMKT: VUG) is a great example of this.

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Focusing on large-cap growth stocks, VUG has been a rewarding investment and has the potential to turn a $1,000 investment into $50,000 if it continues at its current rate.

Stability and growth all mixed into one ETF

Large-cap growth stocks have the potential to be the best of both worlds.

On the one hand, large-cap companies (those with a market cap of at least $200 billion) typically have established business models, are market leaders, and are in good financial health. This helps provide a bit of stability because these companies have diversified revenue streams and the resources to weather rough times in the economy.

On the other hand, these companies are still considered growth stocks because of their strong revenue and earnings growth and their considerable expansion and return potential.

Below are the ETF's top 10 holdings:

Company	Percentage of the ETF
Apple	11.61%
Microsoft	10.59%
Nvidia	9.04%
Amazon	6.16%
Meta Platforms	4.04%
Broadcom	3.44%
Alphabet (Class A)	3.24%
Tesla	2.95%
Eli Lilly	2.93%
Alphabet (Class C)	2.63%

Data source: Yahoo! Finance.

The ETF is a bit top-heavy, but that's because it's weighted by market cap, and megacap tech stocks have skyrocketed in valuation over the past half-decade or so. The tech sector represents over 58% of VUG.

How a $1,000 investment can turn into $50,000

This ETF doesn't have superpowers that can turn $1,000 into $50,000 overnight, but it does have returns that can do so if they continue.

Since hitting the stock market in January 2004, the VUG ETF has averaged around 10.4% annual returns. Over the past decade, its average annual returns have been an impressive 14.7%.

VUG data by YCharts.

Using 10% and 14% average annual returns, here's how much a one-time $1,000 investment could go to in different numbers of years:

Years Invested	10% Annual Returns	14% Annual Returns
10	$2,580	$3,690
15	$4,150	$7,100
20	$6,670	$13,640
25	$10,730	$26,230
30	$17,260	$50,410

Calculations by author. Values are rounded down to the nearest ten and take into account VUG's expense ratio.

Let compound earnings do the hard work for you

Anytime your investment grows a few times over, it's a good thing, but the real value is created when you continue contributing to VUG instead of a one-time investment.

For the sake of illustration, let's meet in the middle and assume VUG averages 12% annual returns. Here's how your investment could stack up based on how much you add monthly:

Years Invested	$100 Added Monthly	$250 Added Monthly	$500 Added Monthly
15	$50,000	$116,900	$228,400
20	$95,600	$224,700	$439,800
25	$175,800	$414,300	$811,900

Calculations by author. Values are rounded down to the nearest hundred and take into account VUG's expense ratio.

It's important to remember that these are all assumptions and there's no way to predict how VUG (or any stock) will perform going forward. However, the most important thing this shows is just how effective compound earnings can be at creating wealth in the stock market.

What you may lack in a lump sum to invest, you can make up for with consistency and time. Don't underestimate the power of both.

Should you invest $1,000 in Vanguard Index Funds - Vanguard Growth ETF right now?

Before you buy stock in Vanguard Index Funds - Vanguard Growth ETF, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vanguard Index Funds - Vanguard Growth ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $713,547!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $966,931!*

Now, it’s worth noting Stock Advisor’s total average return is 1,062% — a market-crushing outperformance compared to 177% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 23, 2025

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Stefon Walters has positions in Apple and Microsoft. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, Tesla, and Vanguard Index Funds-Vanguard Growth ETF. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

The secret to retiring a multi-millionaire is quite simple. There is no easier way to accomplish this than by using a consistent dollar-cost averaging strategy. If you start investing early and use this investment strategy, your odds of retiring a multi-millionaire are extremely good.

Dollar-cost averaging is one of the simplest and most effective investing strategies out there. Instead of trying to time the market, you simply invest at regular intervals, regardless of where prices are.

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By investing a fixed amount every month, or every paycheck, you'll buy more shares when prices are low and fewer shares when they're high. Over time, this will smooth out your cost basis and help protect you from big market swings. It's a disciplined approach that will keep you investing through both bull and bear markets.

Some of the best investment vehicles to use this strategy with are exchange-traded funds (ETFs). With ETFs, you can get an instant portfolio of stocks without doing a lot of research. ETFs are also very accessible. You can feel comfortable starting with a small amount -- the key is just investing consistently.

With the power of compounding, dollar-cost averaging consistently into an ETF can help you retire a multi-millionaire. You also don't have to start with a large amount. If you are in your mid-twenties and have 40 years until retirement, a simple $500 investment each month can turn into a nearly $5 million nest egg by the time you hit retirement age with just a 12% average annual return.

If you're older, though, don't fret. A $1,000 investment each month at a 12% annual return can give you a $3 million portfolio after 30 years. However, the sooner you start, the better, as $1,000 each month for 40 years turns into nearly $10 million.

Let's look at five ETFs with strong track records that can help you retire a multi-millionaire.

Vanguard S&P 500 ETF

With a 12.8% return over the past decade, the Vanguard S&P 500 ETF (NYSEMKT: VOO) is one of the first choices that investors should consider when looking to implement a dollar-cost-averaging strategy. The ETF replicates the performance of the S&P 500, which is widely considered the benchmark for the U.S. stock market.

The ETF is a nice blend of growth and value large-cap stocks, and with around 500 stocks in the fund, it gives investors instant diversity.

Vanguard Growth ETF

Growth stocks have been leading the way in the market for the better part of two decades. The Vanguard Growth ETF (NYSEMKT: VUG) is a great way to invest in this dynamic. With a 15.3% return over the last 10 years, this ETF is another solid choice for investors looking to use a dollar-cost-averaging strategy.

While the ETF officially tracks the CRSP US Large Cap Growth Index, this is essentially the growth side of the S&P 500. It's not as diversified as the S&P 500, with only around 165 stocks in its portfolio, but you're getting the best of the large-cap growth stocks through the ETF.

Invesco QQQ Trust

The Invesco QQQ Trust (NASDAQ: QQQ) has quite simply been one of the best-performing non-sector-specific or non-leveraged ETFs over the past decade. The ETF tracks the performance of the Nasdaq-100 index, which is made up of the 100 largest non-financial stocks that trade on the Nasdaq Stock Exchange. The Nasdaq has long been known as the exchange for emerging growth and technology companies, so the ETF is heavily weighted toward these types of stocks.

The ETF has generated an average annual return of 17.7% over the past 10 years, easily ahead of the return of the S&P 500 over the same stretch. Even more impressive is that it has consistently beaten the S&P 500 more than 87% of the time on a 12-month rolling basis.

Schwab U.S. Dividend Equity ETF

Investing in growth and technology stocks is not the only investment style, and the Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) is a nice value investment alternative. The ETF tracks the Dow Jones U.S. Dividend 100 Index, which consists of high-yielding U.S. stocks that have long track records of consistently paying out dividends.

While the ETF has only generated a 10.6% average annual return over the past 10 years, it has produced a 12.2% annual average return since its inception in October 2011. That's a solid long-term track record.

ARK Next Generation Internet ETF

If you're looking to swing for the fences, the ARK Next Generation Internet ETF (NYSEMKT: ARKW) could be right for you. Unlike the other ETFs, it is actively managed and does not follow an index. Instead, it is focused on investing in companies "that benefit from the increased use of shared technology, infrastructure and services, internet-based products and services, new payment methods, big data, the internet of things, and social distribution and media." In addition to investing in stocks, it currently has an investment in an ETF that tracks the price of Bitcoin.

The ETF has been a strong performer, generating an average annual return of 18.2% over the past 10 years. However, you'll need a strong stomach, as the ETF has seen some wild swings over the past few years, as shown in the table below.

Year	2020 Year	2021 Year	2022 Year	2023 Year	2024 Year
Performance	157.08%	-16.65%	-67.49%	96.99%	42.27%

Data source: Ark Invest.

As such, this ETF is only for the most aggressive investors.

Should you invest $1,000 in Vanguard S&P 500 ETF right now?

Before you buy stock in Vanguard S&P 500 ETF, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vanguard S&P 500 ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $713,547!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $966,931!*

Now, it’s worth noting Stock Advisor’s total average return is 1,062% — a market-crushing outperformance compared to 177% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 23, 2025

Geoffrey Seiler has positions in Invesco QQQ Trust and Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Bitcoin, Vanguard Index Funds-Vanguard Growth ETF, and Vanguard S&P 500 ETF. The Motley Fool has a disclosure policy.

Investing a regular amount of money into the stock market each month can be an excellent way to grow your savings and build up a portfolio that's eventually worth $1 million or more. But it can be challenging to do, especially since you have to ensure you can continue to afford making monthly investments, and then picking which investments to make with that money. Amid volatile economic conditions, that's no easy task.

You can, however, simplify the process by going with some solid exchange-traded funds (ETFs) that can diversify your portfolio and set you up for some great growth opportunities in the future. A couple of low-cost Vanguard ETFs to consider for this purpose include the Vanguard Growth Index Fund (NYSEMKT: VUG) and the Vanguard Information Technology Index Fund (NYSEMKT: VGT).

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Here's why investing $300 per month into either one of these ETFs could put you on track to generating a $1 million portfolio in the future.

Vanguard Growth Index Fund

The Vanguard Growth Index Fund is a great, growth-focused ETF you can add to your portfolio. It charges an expense ratio of only 0.04%, which means you don't have to worry about high fees chipping away at your gains.

What's attractive about this fund is that it focuses on large-cap growth stocks. These are the types of investments that can drive long-run returns for your portfolio and make the most of your money. Stocks such as Tesla, Amazon, and Nvidia are all among its top-10 holdings. These are leaders within their respective industries, and their businesses are synonymous with growth. With more than 160 stocks in total, this is a well-diversified ETF to simply buy and hold. It also yields around 0.5%.

Over the past decade, the ETF has achieved total returns (which include dividend payments) of approximately 327%. That averages out to a compound annual growth rate (CAGR) of 15.6%.

But for the sake of being conservative, let's assume that its returns will slow down given how hot the market has been in the past few years and how it's reaching record levels. If the ETF averages a return of about 10% for the very long haul (which is in line with the S&P 500's long-term average), then a $300 per-month investment could grow to more than $1 million after a period of 34 years.

This would require investing in the ETF every month during that time frame. But by doing so, you can put yourself on a path to producing some fantastic returns thanks to the effects of compounding.

VUG Total Return Level data by YCharts.

Vanguard Information Technology Index Fund

As terrific of a growth investment as the Vanguard Growth Index Fund has been in recent years, it still falls well short of the gains the Vanguard Information Technology Index Fund has produced during that stretch. At 543%, its 10-year total returns average out to an annual gain of 20.5%.

That's a mind-boggling return, and it highlights just how impressive the stocks within this ETF have been. There will be some overlap between this fund and the growth ETF, but the big difference is there is heavier exposure to big tech. Nvidia, Microsoft, and Apple account for a combined 45% of the Vanguard Information Technology ETF's total holdings, but they make up just around 32% of the growth ETF. That difference can be substantial over time, especially given how well a massive stock like Nvidia has performed. In 10 years, its returns have been truly exceptional, totaling 28,000%.

Given Nvidia's size today as one of the most valuable companies in the world, odds are its returns will be far more modest over the next decade. While they may still be great, it's probably a good idea to factor in a healthy dose of conservatism with this ETF as well given how much of a boost Nvidia has given it in the past. Even though the ETF is focused on tech and growth, averaging 20% annual returns likely isn't going to be sustainable over the very long haul. The expectation of a 10% return may also be prudent with this ETF to ensure your expectations aren't set too high for future gains.

As with the growth ETF, if you invest $300 per month into this fund, you can also be on the path to a $1 million portfolio. If this ETF continues to outperform the market, however, then it may take less than 34 years to get to $1 million. But by staying the course and investing regularly into this or the growth ETF, you can be in a good position for building up a solid portfolio over the long haul.

The Vanguard Information Technology ETF charges an expense ratio of 0.09%, and while that's a bit higher than the growth ETF's fees, they aren't going to drastically alter your prospects for generating potentially life-changing returns from regularly investing in this fund.

Should you invest $1,000 in Vanguard Index Funds - Vanguard Growth ETF right now?

Before you buy stock in Vanguard Index Funds - Vanguard Growth ETF, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vanguard Index Funds - Vanguard Growth ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $891,722!*

Now, it’s worth noting Stock Advisor’s total average return is 995% — a market-crushing outperformance compared to 172% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 9, 2025

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Apple, Microsoft, Nvidia, Tesla, and Vanguard Index Funds-Vanguard Growth ETF. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

Are you looking to build a worry-free, passive long-term portfolio that will allow you to focus on other things while growing your money? Buying and holding a handful of exchange-traded funds (or ETFs) is the answer, of course, and the SPDR S&P 500 ETF Trust (NYSEMKT: SPY) remains a top choice.

If you're truly looking for lifetime holdings though, you may want to consider a slightly different solution that allows you to adjust your overall allocation as time marches on. Namely, you'll want to buy a handful of different (but complementary) ETFs that can be individually scaled back or added to as your risk tolerances change.

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If you have $1,000 in cash available to invest that isn't needed for monthly bills, to pay off short-term debt, or to bolster an emergency fund, here's a combination of ETFs to consider that will likely set most investors up for a lifetime of strong performance.

Vanguard Growth ETF

If this really is going to be a "forever" portfolio, it's a reasonably safe bet that growth is a priority for most of the time frame in question. The Vanguard Growth ETF (NYSEMKT: VUG) will handle this part of the overall job nicely.

Just as the name suggests, the Vanguard Growth ETF holds a basket of growth stocks. The fund currently holds significant stakes in Apple, Microsoft, and Nvidia ... some of the market's top-performing growth names of late. Although this company weighting evolves over time as some companies' market caps outgrow others, this ETF gives you a great shot at major long-term capital gains.

Data by YCharts.

There's a very particular reason, however, you might want to own the Vanguard Growth ETF instead of seemingly similar alternatives like the Invesco QQQ Trust, which holds many of the same stocks. That's the fact that this fund is meant to mirror the CRSP U.S. Large Cap Growth Index. (CRSP stands for the Center for Research in Security Prices.)

That won't mean much to most people. This might get your attention though: The CRSP Large Cap Growth Index largely sidesteps the common problem of taking on too much exposure to the market's very biggest companies, which in turn leaves investors vulnerable to sizable setbacks once the tide finally turns against these top names.

That hardly makes it an "equal weight" index, to be clear -- it's still measurably top-heavy.

The fund is top-heavy to a degree that's tolerable and even a little desirable, however, by virtue of ensuring a little bit of overexposure to companies that are becoming much bigger due to actual top- and bottom-line growth.

Schwab U.S. Dividend Equity ETF

Growth stocks aren't the only way for your portfolio to achieve net growth, of course. It can also be done by a slow and steady (and ever-rising) flow of fresh cash into the account, which is then used to purchase more of whatever's generating that income. For some investors, that will be bonds and other fixed-income instruments. For most people though, this income will come from dividend-paying stocks.

The irony? High-quality dividend-paying stocks often end up outgaining the broad market anyway.

Mutual fund company Hartford crunched the numbers, determining that since 1973, stocks of companies that were able and willing to consistently grow their dividend payments produced average annual net gains of more than 10% (assuming reinvestment of those dividends) while stocks that didn't dish out any dividends didn't perform half as well. Moreover, reliable dividend payers were the market's least volatile stocks during this stretch, making them easier to stick with during turbulent times.

Data by YCharts.

What gives? The best explanation is the argument that quality always eventually shines through, and a reliably growing dividend is a good sign that a company is solid and well-run. Although there's certainly the occasional exception to this norm -- think non-dividend-paying Nvidia -- identifying these exceptions isn't always easy. You should invest based on your best odds, particularly when you're thinking in terms of a lifetime.

The Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) is arguably the best way to plug into this dividend-driven dynamic. Based on the Dow Jones U.S. Dividend 100™ Index, this ETF doesn't simply hold what appear to be the market's most promising dividend stocks. In addition to requiring at least 10 consecutive years of annual dividend increases, inclusion in this index also considers fundamental factors like free cash flow versus debt, return on equity, and its typical dividend growth rate. Each prospective constituent is then ranked on these metrics to screen out all tickers other than the best 100 names.

While this approach seems quite mechanical, that's the reason it works so well. There's no misleading emotion, presumption, or bias built into the selection and rebalancing process.

iShares U.S. Technology ETF

Finally, add the iShares U.S. Technology ETF (NYSEMKT: IYW) to your list of ETFs to buy and hold for a lifetime if you've got $1,000 -- or any other amount of money -- you'd like to put to work for a while.

It's obviously different than either of the other two exchange-traded funds suggested here, both of which represent a unique investing school of thought. A sector-based fund is more strategically precise, calling into question whether or not it's actually capable of being a true lifetime holding. And maybe it isn't. It would be shocking, however, if the technology sector wasn't a great one to plan on holding for the long haul, even if you can't fully see its future.

Data by YCharts.

Think about it. Ever since personal computers began proliferating back in the late 1990s, the world has increasingly become digitized. Automobiles have them on board, and people would struggle to function without the mini mobile computer they now carry around in their pocket or purse. Artificial intelligence is now being used by the pharmaceutical industry to discover, design, and digitally test new drugs. Factories are made more efficient by being able to instantly share and create actionable data. At the heart of all of it is technology, and now that we've seen what it can do, we're certainly not going back to the "old way" that was less efficient and less effective. Now, one of the world's most commonly asked questions is: How can we use technology to make things even better?

There's more than one exchange-traded fund that would fit this bill, but the iShares U.S. Technology ETF is arguably the best all-around prospect thanks to how it weights its holdings.

Built to mirror the performance of the Russell 1000 Technology RIC 22.5/45 Capped Index, this fund -- like the aforementioned Vanguard Growth ETF -- at least attempts to maintain a reasonably balanced allocation even when the market itself is becoming top-heavy thanks to the ongoing growth of a small handful of massive companies. As Russell explains in a factsheet on the index, "At the quarterly index reviews, all companies that have a weight greater than 4.5% in aggregate are no more than 45% of the index, and no individual company in the index has a weight greater than 22.5% of the index."

This approach doesn't always perfectly accomplish its goal. Right now, for instance, Microsoft, Nvidia, and Apple collectively account for about 45% of the index's value. That's not particularly well balanced.

The weighting rules will help more often than not in the long run though, and will certainly help more often than they hurt.

Should you invest $1,000 in Vanguard Index Funds - Vanguard Growth ETF right now?

Before you buy stock in Vanguard Index Funds - Vanguard Growth ETF, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vanguard Index Funds - Vanguard Growth ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $635,275!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $826,385!*

Now, it’s worth noting Stock Advisor’s total average return is 967% — a market-crushing outperformance compared to 171% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of May 12, 2025

James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Microsoft, Nvidia, and Vanguard Index Funds - Vanguard Growth ETF. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

The stock market remains volatile but not quite as frantic as earlier this year. Meanwhile, the major market indexes remain well below their recent highs.

Against this backdrop, now is a great time to invest in high-quality exchange-traded funds (ETFs) that track indexes. ETFs are a collection of assets that trade as a single unit and are a great place for new and experienced investors alike because they bring instant diversification with the flexibility to be traded like a single stock.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

And $500 is a great starting point -- but just that. The key to investing, particularly with ETFs, is to contribute consistently over time. It's a strategy known as dollar-cost averaging, where you regularly invest a set amount at a specific time. This could be with each paycheck or on a particular day of the month.

It is important to stick with this strategy, whether the market is up or down. Down markets are a great time to pick up stocks on the cheap and get a better cost basis.

And you should continue to do so even in bull markets, which tend to last a long time. In fact, according to a JPMorgan Chase study, since 1950, the S&P 500 hit a new all-time high on 7% of its trading days, and on a third of those days, the index never dropped lower.

Let's look at three great index ETFs you can begin to invest in right now.

The Vanguard S&P 500 ETF

One of the most popular ETFs in the world is the Vanguard S&P 500 ETF (NYSEMKT: VOO), and for good reason. As the name says, it tracks the roughly 500 largest companies that trade on a U.S. stock exchange. The index is market-cap weighted, which means that the larger a company's value, the bigger part of the portfolio it occupies.

And as with most Vanguard ETFs, it comes with a minuscule expense ratio. Even seemingly low expense ratios, such as 1%, eat into returns over time, especially as your investments grow in size. The Vanguard ETF's expense ratio is only a scant 0.03%.

With this Vanguard ETF, investors get an instant portfolio of the companies that have grown to become some of the world's largest. The index is also generally considered the benchmark for the U.S. stock market as a whole.

The ETF has a long history of solid returns. Over the past decade, it has generated an average annual return of 12.3%, as of the end of April.

The Vanguard Growth ETF

Sticking with Vanguard and its low costs, the Vanguard Growth ETF (NYSEMKT: VUG) is another great option. It mimics the CRSP US Large Cap Growth Index, which is essentially the growth side of the S&P 500. It has a similarly low expense ratio of 0.04%.

The Vanguard Growth ETF gives you an instant portfolio of many of the large-cap growth stocks that have been helping drive the market over the past several years. It is heavily weighted toward the tech sector, which makes up about 57% of its holdings. And some very tech-heavy companies, such as Amazon and Tesla, are categorized into other sectors.

If you're looking for exposure to the so-called "Magnificent Seven" stocks (Apple, Alphabet, Amazon, Meta Platforms, Microsoft, Nvidia, and Tesla), this ETF is a good option. At the end of last quarter, these seven stocks accounted for over 50% of its holdings.

This fund has been a strong long-term performer, generating a 14.5% return over the past 10 years, as of the end of April.

The Invesco QQQ ETF

Beating the returns of the S&P 500 is not an easy task, but one ETF that has been able to consistently outperform it is the Invesco QQQ ETF (NASDAQ: QQQ), which tracks the performance of the Nasdaq 100. Like the other indexes mentioned above, the Nasdaq 100 is also market-cap weighted. It contains the 100 largest nonfinancial stocks on the exchange.

That index has historically attracted fast-growing companies, particularly in the technology sector. As such, it is also very heavily weighted toward tech, checking in at a similar 57% to the Vanguard Growth fund.

The Invesco ETF has been the best performer of these three over the past decade, with an average annual return of nearly 17% over the past 10 years, as of the end of April. And this has not been just from a couple of big years of outperformance. On a rolling 12-month basis, it has outperformed the S&P 500 more than 87% of the time over the past decade (for the period ended March).

It carries a 0.2% expense ratio, but its consistent outperformance over the years more than justifies its higher cost.

Should you invest $1,000 in Vanguard S&P 500 ETF right now?

Before you buy stock in Vanguard S&P 500 ETF, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vanguard S&P 500 ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $617,181!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $719,371!*

Now, it’s worth noting Stock Advisor’s total average return is 909% — a market-crushing outperformance compared to 163% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of May 5, 2025

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. JPMorgan Chase is an advertising partner of Motley Fool Money. Geoffrey Seiler has positions in Alphabet, Invesco QQQ Trust, and Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, JPMorgan Chase, Meta Platforms, Microsoft, Nvidia, Tesla, Vanguard Index Funds - Vanguard Growth ETF, and Vanguard S&P 500 ETF. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

Everyone has to start somewhere when saving for retirement. Even if you don't have any money saved up today, it's possible to build up a strong nest egg by the time you retire, potentially even $1 million. Through the power of compounding and investing, you can grow your savings at far higher levels than if you were to just accumulate money in a bank account.

What's important, however, is to have a plan and know how much you may need to invest regularly in order to achieve your goals. Below, I'll show you what amount you may want to aim to invest each month, based on your age and years until retirement, in order to end up with a portfolio of at least $1 million by the time you retire.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Growth stocks are your go-to option for long-term investing

If you're investing for a period of 20-plus years, then you'll likely be far better off going with growth stocks than dividend stocks. The latter are more suitable when you're older, closer to retirement, and want to keep your risk relatively low. The former, however, can produce much better gains over the long run but come with much greater uncertainty and risk in any individual year. As long as you're in it for the long haul and can stomach any bad years along the way, the payoff can be well worth it.

Rather than picking growth stocks yourself, there are many exchange-traded funds (ETFs) you can invest in that will give you exposure to many of them. One popular option for growth investors is the Vanguard Growth Index Fund ETF (NYSEMKT: VUG). This has been a market-beating fund to own over the past decade, with its total returns (which include reinvested dividends) up more than 240%.

^SPX data by YCharts.

The past doesn't predict the future. But odds are, by sticking with growth stocks, you'll be putting yourself in an excellent position to achieve some terrific returns in the years ahead.

The VUG ETF holds more than 160 of the U.S.'s largest growth stocks, including big names like Nvidia and Meta Platforms. Its constituent stocks have averaged an annual earnings growth rate of more than 26% over the past five years. The fund also charges a low expense ratio of 0.04%, which means fees won't take a big chunk out of your gains.

How much do you need to invest each month to retire with $1 million?

In order to forecast how much you'll need to save and invest each month to be on track to retire with at least $1 million, you need to consider the number of years you have until retirement, as well as the average return that you'll achieve over that timeframe.

You might have some control over the retirement number (in this example, I'm assuming you retire at age 65). But predicting an average return can be challenging, and that can make a significant difference in your overall returns and how much you might need to invest.

Historically, the S&P 500 has averaged an annual return of around 10%. For the sake of being conservative, in the table below, I've shown you how much you'll need to invest monthly based on a 10% annual return, and also a 9% return, should the market slow down.

		Monthly Investment Needed to Get to $1 Million
Age	Years to Retire	Average Annual Growth at 9%	Average Annual Growth at 10%
45	20	$1,486	$1,306
40	25	$885	$747
35	30	$542	$439
30	35	$337	$261

Table and calculations by author.

These numbers can seem high, but they don't need to be discouraging. You can invest tax refunds, inheritance, investment gains, and any other potential lump sum amounts to help accelerate your portfolio's growth. The more money you have invested, the more it will compound over time, and help you end up with a higher balance in the end.

Knowing the amounts you might need can help you create a plan that aligns with your goals, and that doesn't set expectations too high or depend on a best-case scenario. Either way, trying to put aside a regular amount of money into growth-oriented investments can still help you build up a strong portfolio balance by the time you retire, even if you don't end up with $1 million.

Should you invest $1,000 in Vanguard Index Funds - Vanguard Growth ETF right now?

Before you buy stock in Vanguard Index Funds - Vanguard Growth ETF, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vanguard Index Funds - Vanguard Growth ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $594,046!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $680,390!*

Now, it’s worth noting Stock Advisor’s total average return is 872% — a market-crushing outperformance compared to 160% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 21, 2025

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms, Nvidia, and Vanguard Index Funds-Vanguard Growth ETF. The Motley Fool has a disclosure policy.