In 30 years, $ 450 has invested a monthly Vanguard S&P 500 ETF, creating a $ 976,700 portfolio, which pays $ 17,500 annual dividend revenue.
The S&P 500 has overcome many other asset classes in the last two decades and has never received negative returns in 15 years.
The S&P 500 has reached a total of 1900% return in the last three decades, and during that period the average dividend yield was 1.8%.
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From 2025 June The average annual annual annual revenue from 25 to 34 was about $ 59,200. It would be about $ 45,000 after federal and state taxes, even at worst. Financial advisors usually recommend saving 20% of the tax revenue after retirement, which means $ 9,000 a year ($ 750 a month) for the average employee of that age group.
However, even the percentage of this amount can grow into a large portfolio given enough time. The story says Vanguard S&P 500 ETF(NYSEMKT: Flight) It may increase to $ 976,700 in three decades, and this amount will then earn a $ 17,500 annual dividend revenue. Read on to find out more.
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Vanguard S&P 500 ETF sequence S&P 500(Snigex: ^GSPC)an index consisting of 500 large US stakes covering about 80% of domestic stakes and 40% of global stock market capitalization.
In that sense, the Vanguard S&P 500 ETF is a ready -made portfolio that provides a variety of impact on many of the most influential companies in the world. The five largest holdings are listed under weight below:
NVIDIA: 7.7%
Microsoft: 6.8%
Apple: 6.3%
Alphabet: 4.1%
Amazon: 3.9%
The Vanguard S&P 500 ETF costs are 0.03%, which means that shareholders will pay only $ 3 per year for $ 10,000 in a product. This is much lower than the average 0.34% cost ratio in US index funds and investment funds. In addition, the investment thesis of the Vanguard S&P 500 ETF will be summarized with three points.
The S&P 500 has outperformed the benchmarks of most other asset classes in the last 20 years, including international shares, fixed income, real estate and precious metals.
Less than 12% of large capital funds have overcome the S&P 500 in the last 15 years, which means that even professional money managers are trying to outdo the index over a long period of time.
Since 1950 The S&P 500 has never received a negative return in 15 years, which means that patient investors are practically guaranteed to make a profit by giving enough time.
Here’s the point: few diversified index funds have an experience that competes with the Vanguard S&P 500 ETF, and even less a lower cost ratio.
The S&P 500 has accounted for a total of 1900% in the last three decades, which equates to 10.5% a year, despite the index, which suffers from four bears market and the economy suffering from three downs. With these data, investors may be reasonably convinced that the S&P 500 will give a similar return in the future.
At that rate, $ 450 per month was invested in Vanguard S&P 500 ETF value of $ 976,700 in three decades. At that time, you can stop investing in dividends. The S&P 500 has paid an average of 1.8% dividends in the last three decades, which means that $ 976,700 portfolio would pay about $ 17,500 in the annual dividend revenue.
Importantly, the main amount will grow (if the stock market increases) without reinvested dividends. For example, the S&P 500 has returned 8.4% per year in the last three decades, except for dividends. At this pace, $ 976,700 portfolio would be $ 1.4 million in five years. USD, which would pay the $ 26,300 annual dividend income.
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Trevor Jennewine holds positions in Amazon, Nvidia and Vanguard S&P 500 ETF. Motley fools are positions and recommend the alphabet, Amazon, Apple, Microsoft, Nvidia and Vanguard S&P 500 ETF. The Motley fool recommends the following options: 2026. January 395 USD calls Microsoft and briefly 2026. January $ 405 Microsoft calls. The Motley fool has a disclosure policy.
1 Vanguard Index Foundation could turn $ 450 a month into a $ 976,700 portfolio, which pays $ 17,500 annual dividend revenue
