1 Unstoppable Vanguard ETF That Can Turn $1,000 into $143,000 or More with Almost No Effort

We are now just over two years into the current bull market, and as prices continue to rise, investing now can be a fantastic way to build long-term wealth.

Exchange-traded funds (ETFs) can be an easier way to participate in the stock market. Buying just one share of an ETF can give you exposure to hundreds of stocks at once, without having to research dozens of different companies like you would if you were investing in individual stocks.

However, where you choose to buy matters because not all ETFs are sound investments. If you’re looking for a high-yield fund that can potentially help you make a lot of money over time, there’s one Vanguard ETF you might want to consider.

A Tech ETF That Will Build Your Portfolio

Vanguard Information Technology ETF (VGT -0.10%) is a technology-focused ETF that holds 316 stocks from across the tech industry, from semiconductors to system software, hardware and storage, and more.

The top three holdings in this ETF include Apple, MicrosoftAnd Nvidiarespectively. Combined, these three stocks make up just over 44% of the fund’s total.

Investing in an ETF can be a smart way to invest in successful stocks while still gaining access to hundreds of potential stars in the making. Not only will you get exposure to big stocks like Nvidia, but if any of the smaller stocks in the fund become superstars, you’ll reap the rewards.

However, one important factor to consider is that industry ETFs, especially technology ETFs, may carry more risk than many other types of funds. Although this ETF contains more than 300 stocks, since they are all in the same industry, it will not provide as much diversification as a broad market fund containing stocks from all sectors of the stock market.

This is not necessarily a bad thing, but if you decide to invest in this ETF, you will need to double-check that the rest of your capital portfolio is well diversified with stocks or funds from other industries. In general, the more variety you can add to your portfolio, the lower your risk.

How much could you make with this ETF?

Technology ETFs can be much more volatile than broad market funds, especially in the short term. This industry tends to go through bigger ups and downs, so how this fund will perform in the coming months, or even over the next year or two, is anyone’s guess.

However, over the past 10 years, this ETF has earned a staggering average annual return of 20.37%. Its performance since its inception in 2004 is a slightly less impressive 13.45% per year, although that’s still higher than last year. historical stock market average of 10% per year.

^SPH data on YCharts

Again, it is unclear whether these investments will return closer to the average 20% per year or 13% per year in the future, and there is even a chance that they could underperform altogether and earn below-average returns. But it’s a risk you should be willing to accept if you invest in a potentially high-yielding ETF.

Let’s say you earn an average annual return of 18% in the future. If you were to invest $1,000 right now and make no additional contributions, that initial investment could grow to approximately $143,000 over 30 years without any effort.

However, to potentially earn exponentially more, you can continue to invest a small amount each month. If you invest $1,000 now and then continue to invest just $50 per month thereafter, here is the approximate amount you can accumulate in total, depending on the profits you earn:

Data source: Author’s calculations via investor.gov.

If this ETF continues to generate returns in line with its 10-year average, you could potentially earn close to $1 million by investing just $50 per month. But even if his future income turns out to be insufficient, it is still possible to earn a lot of money even with small monthly contributions.

Investing in ETFs can be a smart way to build wealth with less effort than buying individual stocks, but choosing the right investments is key. If you’re willing to take on a little more risk for the chance at potentially life-changing returns over time, the Vanguard Information Technology ETF could be a smart addition to your portfolio.

Katie Brockman holds positions in the Vanguard World Fund-Vanguard Information Technology ETF. The Motley Fool has positions and recommends Apple, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 Microsoft calls and short January 2026 $405 Microsoft calls. The Motley Fool has disclosure policy.