The Vanguard S&P 500 ETF recently made stock market history, becoming the first ETF to reach $1 trillion in assets. And there’s a good reason why it’s the most popular ETFs among investors.
Not only does this fund provide diversified exposure to 500 of America’s largest companies, but it also has a strong track record of consistent growth over time. In fact, since the Vanguard S&P 500 ETF launched in 2010, it has generated total returns of nearly 800% as of this writing.
But is it really possible to make $1 million or more with this slow but steady ETF? History says yes – but with a caveat.
1 UNDER THE RADAR ETF TO INVEST $1,000 IN NOW THAT IS OUTPERFORMING MAJOR INDEXES THIS YEAR
A futures options trader works on the floor of the NYSE American (AMEX) of the New York Stock Exchange in New York on June 8, 2026. (Brendan McDermid/Reuters / Reuters)
The Path to a Million Dollar PortfolioThe market can be extremely unpredictable in the short term, but its long-term performance is much more stable. Over the past seven decades, annual returns for the S&P 500 (SNPINDEX: ^GSPC) have averaged just over 10% per year. The longer you stay in the market, the more likely you are to earn positive total returns.
Teleprinter Security Last Change Change % FLIGHT VANGUARD S&P 500 ETF – USD DIS 693.83 +11.88 +1.74% A long-term perspective is crucial to any investment, but it’s especially important with an S&P 500 ETF. This fund isn’t the highest return, especially compared to growth ETFs designed to beat the market. However, its strength lies in its long-term potential.
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Let’s say you earn an average annual return of 10% on your investment, and you have a goal of reaching $1 million. At this rate, here is approximately what you will need to invest each month, depending on your schedule:
Number of yearsAmount invested each monthTotal portfolio value20$1,500$1.031 million25$850$1.003 million30$525$1.036 million35$325$1.057 million40$200$1.062 millionData source: Author’s calculations via invest.gov.
Time and consistency are key to building significant wealth with the Vanguard S&P 500 ETF. It will likely take a few decades to accumulate $1 million with this type of investment, but it is within reach for many investors – assuming the S&P 500 continues to generate returns consistent with its historical average.
How to earn even more on the stock marketAgain, the S&P 500 ETF is known more for its consistency than its high returns. For many investors, lower earnings potential is an attractive tradeoff for a fund with decades of history generating consistent growth. However, those looking to maximize their stock market gains may prefer a different approach.
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The opening bell of the New York Stock Exchange, in New York, May 28, 2025. (Adam Gray for Fox News Digital)
Purchase individual actions is perhaps the best way to achieve higher returns in the long term. This strategy often requires more time and research, but a custom portfolio full of healthy stocks can significantly outperform the S&P 500. Investing in growth ETFs is another option, as these funds only contain stocks with above-average return potential.
The Vanguard S&P 500 ETF can offer diversification and stability, making it a wise choice for long-term investors. No matter where you choose to buy, investing consistently and staying in the market for the long term can help you build wealth that will last a lifetime.
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Katie Brockman holds positions in the Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends the Vanguard S&P 500 ETF. The Motley Fool has a disclosure policy.
