History Says This ETF Could Turn $100 per Month Into $167,690 in 20 Years. Here’s How.
Most of the attention in the stock market goes to the largest companies: large-cap stocks, some of which are worth more than $1 trillion. The S&P 500 index is a great way to buy the 500 largest U.S. large-caps. For the past 10 years, S&P 500 exchange-traded funds (ETFs) like the Vanguard S&P 500 ETF have delivered annualized returns of about 15.3%.
But what if the big names are about to get outplayed by the little guys? Small-cap stocks, which tend to be younger, riskier, but potentially faster-growing companies, might be ready to take their place in the spotlight. Vanguard’s recent research forecast projects that U.S. small-cap stocks will outperform U.S. large-cap stocks over the next 30 years, perhaps by as much as 2.6% per year.
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