$500 a Month in Vanguard's Total Stock Market ETF Since 2001 Grew to About $876,000
Only $150,000 of that came out of pocket -- and some of the best buys happened during a crash.
Overview
Say an investor bought $500 of the Vanguard Morningstar Total Stock Market ETF (NYSEMKT:VTI) on the first trading day of every month, starting Oct. 1, 2001, a few months after the fund launched. By the latest purchase on Sept. 1, the habit would've added up to 300 buys and $150,000 in contributions.
Using the fund's closing prices adjusted for dividends (this assumes every payout was reinvested and ignores taxes), the buys picked up about 2,323 shares. With shares trading near $377 as of this writing, the account would be worth about $876,000.
Details
That's almost six times the cash put in. And it got there through two steep drawdowns: the 2008 financial crisis and the 2022 bear market.
Source
Originally published at www.fool.com.
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