Investing in the stock market is a proven way to build long-term wealth, and over time, even relatively small amounts can add up to life-changing earnings.
The Vanguard S&P 500 ETF (NYSEMKT: VOO) is a powerhouse investment, tracking the S&P 500 and holding stocks from 500 of the largest and strongest U.S. companies. It’s experienced explosive growth over the last decade or so, and those who had stayed invested for the long haul have reaped the rewards.
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Here’s what your earnings might look like if you’d invested $5,000 in the Vanguard S&P 500 ETF 15 years ago — plus one way to earn even more.
The last couple of decades have been lucrative for the market, and the Vanguard S&P 500 ETF is no exception. Since February 2011, this ETF has earned total returns of over 411%.
If you’d invested $5,000 back then and simply left it alone for 15 years, you’d have nearly $26,000 by today.
While this can be life-changing growth for many people, small, consistent contributions could help you earn even more over time.
For example, say that rather than investing $5,000 at once, you invest $100 per month. Since its inception in 2010, the Vanguard S&P 500 ETF has earned an average annual return of 14.84%. At that rate, $100 per month could add up to more than $56,000 after 15 years.
Time is an incredibly valuable resource when generating wealth in the stock market, and the longer you can give your money to grow, the more you can potentially earn.
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