Could The Vanguard S&P 500 ETF Be Your Ticket to Becoming a Stock Market Millionaire? History Offers a Clear Answer.

The Vanguard S&P 500 ETF (NYSEMKT: VOO) precocious made banal marketplace history, becoming the archetypal ETF to scope $1 trillion successful assets. And there's bully crushed wherefore it's the astir fashionable ETF among investors.

Not lone does this money connection diversified vulnerability to 500 of the largest U.S. companies, but it besides has a rock-solid way grounds of accordant maturation implicit time. In fact, since the Vanguard S&P 500 ETF was launched successful 2010, it's delivered full returns of astir 800%, arsenic of this writing.

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But is it truly imaginable to gain $1 cardinal oregon much with this slow-but-steady ETF? History says yes -- but with a caveat.

The way to a million-dollar portfolio

The marketplace tin beryllium wildly unpredictable successful the abbreviated term, but its semipermanent show is overmuch much stable. Over the past 7 decades, the S&P 500's (SNPINDEX: ^GSPC) yearly returns person averaged retired to conscionable implicit 10% per year. The longer you enactment successful the market, the much apt it is that you'll gain affirmative full returns.

A semipermanent outlook is important with immoderate investment, but it's particularly important with an S&P 500 ETF. This money isn't the highest earner, particularly compared to maturation ETFs that are designed to bushed the market. However, its spot is successful its semipermanent potential.

Let's accidental you're earning a 10% mean yearly instrumentality connected your investment, and you person a extremity of reaching $1 million. At that rate, here's astir what you'd request to put each month, depending connected your timeline:

Data source: author's calculations via investor.gov.

Time and consistency are cardinal to gathering important wealthiness with the Vanguard S&P 500 ETF. It volition apt instrumentality a fewer decades to accumulate $1 cardinal with this benignant of investment, but it is wrong scope for galore investors -- assuming the S&P 500 continues earning returns successful enactment with its historical average.

How to gain adjacent much successful the banal marketplace

Again, the S&P 500 ETF is known much for its consistency than its precocious returns. For galore investors, little earning imaginable is simply a worthwhile trade-off for a money with decades of past delivering accordant growth. Those who are looking to maximize their net successful the banal market, however, whitethorn similar a antithetic approach.