Where Will VTI Be in 2046? Here’s What 25 Years of History Suggests.
The Vanguard Total Stock Market ETF (VTI -0.25%) launched in May 2001 just as the tech bubble was going bust. It was one of the worst times to debut, but the fund’s strategy as an ultra-low-cost way to invest in the entire U.S. equity market was sound.
Since its inception, it’s still managed to produce an average annual return of roughly 9.4%. That means a $10,000 investment in the Vanguard Total Stock Market ETF has turned into more than $102,000 over its lifetime.
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The past quarter-century has demonstrated what the stock market can experience over long periods of time. The tech bubble proved to be a generational bear market. The financial crisis nearly took down the entire U.S. economy. The COVID-19 pandemic was about as unique a situation as you’ll encounter. And, of course, there were more garden-variety bear markets and corrections mixed in as well.
The next 20 years will have similar periods of high volatility. But the U.S. stock market is still likely to deliver strong returns when all is said and done.
VTI – Vanguard Morningstar Total Stock Market ETF
$378.22-$0.96 (-0.25%)
NYSEMKT · As of 1:01 PM ET 10/29/26
If the Vanguard Total Stock Market ETF were to average 9.4% annually again through 2046, a $10,000 investment would turn into about $60,300. At the S&P 500‘s (^GSPC -0.35%) long-term annual return of 10%, the ending balance would be roughly $67,300.
Or returns could be more modest. Vanguard‘s own forecast for the next decade calls for a potential range of returns of 4.8% to 6.8%. If the Vanguard Total Stock Market ETF earns 5.8% per year over the next two decades, the midpoint of that range, that $10,000 would grow to around $30,900.
With such strong returns over the past several years, the potential range of returns looking forward might be pretty wide. But if history is any guide, long-term buy-and-hold investors in U.S. stocks are likely to still do well.
David Dierking has positions in Vanguard Morningstar Total Stock Market ETF. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.