Historical 10% annual returns on S&P 500 ETFs may turn a $500,000 investment into $1 million within eight years.
Investing $500,000 in a broad-based S&P 500 index fund could yield a $1 million portfolio in eight years, assuming a 10% average annual return. This growth rate aligns with the index’s long-term historical performance, making it a viable strategy for ordinary investors seeking substantial returns without active management.
The S&P 500 has delivered roughly 10% annualized returns over decades, though past performance does not guarantee future results. ETFs like VOO or SPY provide low-cost, diversified exposure to the index, eliminating the need for stock-picking or frequent portfolio adjustments.
While individual stock investments may offer higher returns, they require ongoing monitoring and carry greater risk. Index funds remain the simplest path for investors prioritizing steady, long-term growth.