This ETF is designed to help you grow your wealth over the long haul while offering some buffer against market fluctuations.
The stock market has seen impressive growth in recent years, yet many investors are concerned that a downturn might be on the horizon. It’s hard to predict short-term price movements, but eventually, a market dip is likely to happen.
If we face a downturn in 2026, being selective about quality stocks and funds will be critical. Unstable companies often struggle to bounce back during bear markets or recessions, whereas strong organizations typically have a better chance of achieving sustainable growth. There’s one Vanguard ETF I think could be a solid choice to consider for long-term holding.
A solid ETF with resilience
If you’re in the market for an exchange-traded fund (ETF) that could potentially help you build significant wealth while also offering a degree of protection, the Vanguard S&P 500 ETF is definitely worth your attention. It’s one of the most sought-after funds out there.
This ETF tracks the S&P 500, which means it holds all the stocks in the index and aims to reflect its performance over time. The S&P 500 showcases the stocks of 500 of the largest and most influential companies in the U.S., which are leaders in their respective industries.
Investing in S&P 500 ETFs can be an effective way to manage risk during volatile periods. The index has successfully navigated numerous recessions and market corrections while still delivering favorable total returns over the decades.
Historically, long-term investors have faced challenges when it comes to this type of investment. Analysts at Crestmont Research have studied the rolling total returns of the S&P 500, which show that each 20-year span has ended on a positive note.
This means that if you had invested in a fund that mirrors the S&P 500 and held it for two decades, you’d likely see some profit. Sure, the market can be pretty erratic during that time, but if you stay the course and invest for at least 10 to 20 years, there’s a good chance of seeing a favorable total return from the S&P 500 ETF.
Creating wealth over time
| Years | Total portfolio: Average annual return of 10% | Total portfolio: Average annual return of 15% |
|---|---|---|
| 15 | $76,000 | $114,000 |
| 20 | $137,000 | $246,000 |
| 25 | $236,000 | $511,000 |
| 30 | $395,000 | $1,043,000 |
| 35 | $650,000 | $2,115,000 |
If the Vanguard S&P 500 ETF maintains its 10-year average returns, accumulating over $1 million in a few decades seems quite possible. However, even a slightly lower average could still yield a portfolio worth hundreds of thousands of dollars with minimal effort.
While it’s impossible to accurately predict market movements in 2026, the Vanguard S&P 500 ETF stands out as a robust fund with a proven track record. With patience and consistent investment, you might be able to earn more than you expect.
