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3 Unstoppable Growth ETFs to Turn $100 per Month Into $500,000 or More

Motley Fool - Wed Apr 17, 5:00AM CDT

Investing in the stock market is a fantastic way to generate wealth, but the right investments are key to maximizing your earnings while limiting risk.

Growth ETFs can be a smart option for those looking to potentially earn above-average returns with minimal effort. An ETF is a collection of assets grouped together into a single investment. Growth ETFs, specifically, include stocks with the potential for faster-than-average growth.

In other words, when you invest in a single growth ETF, you're actually buying a stake in dozens or even hundreds of different stocks with the potential to beat the market. This strategy requires much less effort than investing in individual stocks, making it a smart choice for those looking for a hands-off investment.

Not all growth ETFs are created equal, however, so it's crucial to do your research before you buy. These three funds have a solid set of advantages, and they could potentially turn just $100 per month into $500,000 or more over time.

1. Vanguard Growth ETF (VUG)

The Vanguard Growth ETF(NYSEMKT: VUG) contains just under 200 stocks from roughly a dozen different industries, though around 56% of the fund is allocated to stocks in the tech sector.

One advantage of this ETF is its mix of blue chip stocks with smaller companies. The top 10 holdings make up around half of the fund's total composition, and these stocks are from behemoth companies like Amazon, Apple, Microsoft, and Tesla.

The other half of the fund is made up of dozens of smaller growth stocks. While these stocks carry more risk than their blue chip counterparts, they're also more likely to see explosive returns. This balance of risk and reward can set you up for greater earnings while still keeping your money safer.

Over the past 10 years, VUG has earned an average return of just over 15% per year. At that rate, if you were to invest $100 per month, here's approximately how much you could accumulate over time:

Number of YearsTotal Portfolio Value
20$123,000
25$255,000
30$522,000

Data source: author's calculations via investor.gov.

Of course, there are never any guarantees in the stock market, so you may or may not see these types of returns going forward. But even if this ETF earns lower average returns in the future, you could still earn hundreds of thousands of dollars over time.

2. Schwab U.S. Large-Cap Growth ETF (SCHG)

The Schwab U.S. Large-Cap Growth ETF(NYSEMKT: SCHG) is similar to VUG, but it's slightly more diversified. It contains 250 stocks, only around 46% of which are allocated to the tech sector. While this growth ETF is still riskier than many broad-market funds, such as the S&P 500 ETF, greater diversification can limit your risk.

SCHG has also earned slightly higher returns than VUG, with an average rate of return of just under 16% per year over the past 10 years. If you were to continue earning 16% average annual returns, here's roughly how much you'd have over time by investing $100 per month:

Number of YearsTotal Portfolio Value
20$138,000
25$299,000
30$636,000

Data source: author's calculations via investor.gov.

Again, it's anyone's guess whether this fund will continue earning returns similar to the past decade. But if you're willing to take a chance on a growth ETF, this investment could potentially be lucrative over time.

3. Invesco QQQ Trust (QQQ)

Invesco QQQ Trust(NASDAQ: QQQ) is the riskiest of the three growth ETFs in this list, but it also has the highest average returns.

This ETF contains only 101 stocks, with nearly 58% of the fund allocated to the technology sector. That makes QQQ the least diversified of the three. It also has the highest expense ratio of 0.20%, meaning you'll pay $20 per year in fees for every $10,000 in your account. Both VUG and SCHG have expense ratios of just 0.04%.

Where QQQ shines, though, is its performance. Over the past 10 years, it's earned an average rate of return of 17.66% per year. If you were to invest $100 per month while earning 17% average annual returns, here's approximately how your savings would add up over time:

Number of YearsTotal Portfolio Value
20$156,000
25$351,000
30$777,000

Data source: author's calculations via investor.gov.

While these numbers are impressive, it's important to keep in mind that nobody knows for certain how any of these ETFs will perform over time. Growth ETFs, in general, tend to be more volatile than other types of investments like broad-market funds, and while they can often beat the market, there's also always a chance they may underperform.

If you're willing to take on higher levels of risk for the chance to earn above-average returns, investing in a growth ETF may be a smart move. By considering your risk tolerance and investing goals, you can decide which of these ETFs is the best fit for your portfolio.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Katie Brockman has positions in Vanguard Index Funds-Vanguard Growth ETF. The Motley Fool has positions in and recommends Amazon, Apple, Microsoft, Tesla, and Vanguard Index Funds-Vanguard Growth ETF. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

Paid Post: Content produced by Motley Fool. The Globe and Mail was not involved, and material was not reviewed prior to publication.

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