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this S&P 500(snpindex: ^gspc) In late June, a new all-time high rose, starting in April, soaring more than 26% from April lows. Many investors are optimistic that the market will continue to climb, which makes it now a great opportunity to load quality stocks.
ETFs are an easy way to build wealth with little effort, but the right investment is the key to maximizing your income. These three pioneer exchange-traded funds (ETFs) are likely to grow as the market reaches new heights.
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The staple food in many investors’ portfolios, Vanguard S&P 500 ETF(nysemkt: voo) When the market is booming and downturn, it is a fixed choice for rocks.
The S&P 500 ETF includes all the stocks listed in the S&P 500 index itself. From being like a technological behemoth apple and Nvidia To a brand like the century’s brand Coca Cola and Procter & Gamblingthe companies in the S&P 500 are one of the largest and most powerful companies in the world, making them more recession-like than many smaller stocks.
Investing in the S&P 500 ETF is also an easy way to build a diversified portfolio with little effort. Since the fund contains hundreds of stocks in all areas of the market, if one or two stocks (or the entire industry) get hit during a downturn, you will be more protected.
Despite its relative security, this ETF can still generate life-changing wealth. Historically, the average rate of return for the market itself is 10% per year. At this rate, investing only $200 a month could add nearly a quarter of a million dollars in 25 years.
If you are looking for security for the S&P 500 index ETF, but with more power, Vanguard S&P 500 Growth ETF(nysemkt: voog) It’s an excellent choice. The fund also tracks the S&P 500, but includes only companies with the greatest growth potential.
ETFs have many advantages over the Vanguard S&P 500 ETF, as all the companies in the fund are one of the largest and most powerful companies in the world – helping to reduce risks. With 212 stocks in all areas of the market, it also provides ample diversification.
However, since it focuses more on growth than just the market, it is also more likely to achieve above-average returns. In fact, the average rate of return of this ETF has been nearly 16% per year over the past 10 years.
VOO data of YCHARTS.
At this rate, the total investment of $200 per month for 25 years is about $598,000. Remember that ETF growth tends to thrive when the market soars, but during the downturn, they usually take a bigger hit than S&P 500 ETFs. The key to success in such investments is to at least make the most of the growth investment.
For those who want to add a strong performer to their portfolio Pioneer Information Technology ETF(Nysemkt:VGT) It is a powerful investment.
The ETF contains only 319 stocks from the technology sector. Industry-specific ETFs can be a wise way to expose the market to a specific market rather than the effort to buy individual stocks. Also, when you invest in hundreds of stocks at a time, your diversification is more than investing in just one or two stocks in each industry.
Vanguard Information Technology ETF has a long history of higher-than-average revenue. Over the past decade, the average annual rate of return exceeded 21%. If you want to continue to earn these types of gains, investing $200 per month will exceed $1.3 million in 25 years.
VOO data of YCHARTS.
Again, remember that during volatility, tech stocks tend to face more severe declines. If the market is worse, be prepared to invest until the recovery period. The ETF has a long history of downturns, but maintaining the long-term outlook is key.
Investing in ETFs can help you build life-changing wealth with less effort than buying a single stock, and now can be a great time for a market to soar. By loading quality funds and holding them for a long time, you can earn more than you think.
Before you purchase a Vanguard Information Technology ETF, consider the following:
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Katie Brockman holds positions in the Vanguard Admiral Fund – Vanguard S&P 500 Growth ETF, Vanguard Information Technology ETF and Vanguard S&P 500 ETF. Motley fool has a place and recommends Apple, Nvidia and Vanguard S&P 500 ETFs. Motley Fool has a disclosure policy.
S&P 500 Soars: 3 Functionless Pioneer ETF to Buy Now, Originally published by Motley Fool