Looking for growth in the S&P 500
The Vanguard S&P 500 Growth ETF is well-suited to the needs of long-term investors. It holds a portfolio made up of the companies in the S&P 500 Growth Index, and its performance largely mirrors it. Those growth stocks provide investors with higher potential gains, but they do come with a moderate level of risk.
Many investing experts, including legendary billionaire investor Warren Buffett, suggest that investing in the S&P 500 is a simple way to remove the guesswork of deciding which are the best companies to invest in. However, the S&P 500 includes both growth and value stocks.The S&P 500 Growth Index combs through the 500 or so companies in the benchmark and selects those with higher growth prospects.
Therefore, if it’s growth you’re looking for, the Vanguard S&P 500 Growth Fund has produced average annual returns of 19% since its inception in 2010, and has exceeded 19% for its one-, three-, and five-year averages on annual returns after taxes.
This high-tech fund offers potentially high rewards, but also higher risks
Many financial experts suggest that if you want to keep during retirement the lifestyle that you became accustomed to while you had a steady paycheck, you need to have between 10 and 12 times your annual income set aside by the time you leave the workforce. That means a household with an annual income of $100,000 would need $1 million to $1.2 million on hand when its breadwinners retire.