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The Vanguard 500 ETF is often seen as a strong foundational investment choice.
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For those looking for more growth and tech exposure, options like the Vanguard Growth ETF, QQQ Trust, and Vanguard Information Technology ETF stand out.
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The Schwab US Dividend Equity ETF is another solid pick, offering great yields while emphasizing value.
As the stock market edges towards record highs, it’s understandable why some investors might feel cautious about jumping in right now. But here’s the thing: the market rarely has a perfect ending. Often, if you wait too long, you could miss out on significant gains that might come after a market dip.
So, what’s a better approach? Rather than trying to time the market, consider building a simple portfolio using high-quality index funds or ETFs. Regularly investing—maybe starting with $1,000—can accumulate substantial wealth over time through a consistent dollar-cost averaging strategy.
Now, let’s explore five index ETFs that can help you grow your portfolio for the long haul.
Vanguard S&P 500 ETF (NYSEMKT: VOO) is an example of a core investment that can be acquired in any market condition. It mirrors the S&P 500 index, engaging with approximately 500 of the biggest companies in the U.S., at a remarkably low expense ratio of 0.03%.
This index is designed to favor winners; it aims for companies that outperform over time, including major players like Nvidia, Microsoft, and Apple. It’s noteworthy that the S&P 500 organically adapts as new industry leaders emerge.
On average, these ETFs have delivered an impressive annual return of about 13.6% over the past decade through June. This makes it a straightforward and effective choice for any portfolio.
If you’re driven by growth and innovative companies, consider starting with the Vanguard Growth ETF (NYSEMKT: VUG). This ETF follows the CRSP US Large Cap Growth Index, which represents the growth sector of the S&P 500, featuring major companies that tend to scale revenue quickly.
While it’s a bit more aggressive than the Vanguard S&P 500, it has consistently outperformed, thanks to strong growth stocks ruling the market for several years. Plus, with a low expense ratio of just 0.04%, it’s attractive for investors.
Over the last ten years, the Vanguard Growth ETF has achieved an average annual return of 17.5% as of June. If you believe in the growth trajectory of stocks—which I certainly do—this is a fantastic option.
There’s also the Invesco QQQ Trust (NASDAQ: QQQ), which aims to reflect the performance of the NASDAQ-100, made up of the top 100 non-financial companies trading on the Nasdaq. This index heavily features technology companies, with over 60% of its assets allocated to this sector as of June.
This ETF has shown stellar performance, averaging 18.7% annually over the last decade, which notably exceeds the S&P 500. Its consistent outperformance means that it’s not just a recent trend; it’s been a reliable option. Although its expense ratio is 0.2%, the results speak for themselves.
If you’re particularly keen on tech stocks, consider the Vanguard Information Technology ETF (NYSEMKT: VGT). It tracks the MSCI US Investable Market Information Technology 25/50 Index and offers a direct investment into leading technology firms, including those involved in artificial intelligence.
As of June, a combined 45% of its holdings were in companies like Nvidia, Microsoft, and Apple, with its top 10 holdings comprising almost 60% of the total portfolio, which also includes Alphabet and Amazon.
Over the past decade, this ETF has achieved impressive annual returns of 21%, making it the top performer in this selection. However, be aware that concentrating on a single sector can increase risk.
On the flip side, some investors seek steadiness, cash flow, and increasing dividends. The Schwab US Dividend Equity ETF (NYSEMKT: SCHD) meets these criteria. It incorporates around 100 financially stable firms with proven track records for dividends.
This ETF offers nearly a 4% yield, with a sturdy annual return of 11.2% over the decade ending in June, outperforming many value-focused funds, accompanied by a low expense ratio of 0.06%. Surprisingly, it functions as an index fund tied to the Dow Jones US Dividend 100 Index.
Building long-term wealth does not hinge on timing the market or hunting for the next standout stock like Nvidia. It’s more about consistency—committing to investing in quality ETFs regularly using dollar-cost averaging is key. Time and compound interest work wonders.
You can begin with a $1,000 investment, but consistency is what ultimately builds real wealth.
Before deciding to invest in stocks through the Vanguard S&P 500 ETF, consider this.
Analysts from Motley Fool Stock Advisor have pinpointed what they believe are the 10 Best Stocks for investors to consider now, with the Vanguard S&P 500 ETF not making the list. Those selected stocks could yield significant returns in the coming years.
For context, think about Netflix, which was mentioned back in December 2004—if you invested $1,000 then, it would have grown to $630,291. Similarly, if you invested in Nvidia when recommended in April 2005, it would now be worth $1,075,791.
Just to put this in perspective, Stock Advisor boasts an average return rate of 1,039%, vastly outperforming the S&P 500, which is at 182%. Stay informed and consider looking into the latest top 10 recommendations from Stock Advisor.
*Returns from Stock Advisor as of July 29, 2025.
