Here's How Big a $50,000 Investment in the S&P 500 Could Get in 25 Years
Tracking the S&P 500 index gives investors an easy way to diversify and grow their portfolios over the long term.
Overview
Investing in the S&P 500, an index of the 500 leading stocks on U.S. markets, has historically yielded solid returns. It has averaged an annual return of around 10% for decades. At that kind of return, you would expect your investment to double roughly every seven years.
An exchange-traded fund (ETF) such as the Vanguard S&P 500 ETF (NYSEMKT: VOO) can be a potentially ideal long-term investment, as it tracks the S&P 500 while charging minimal fees -- its expense ratio is just 0.03%. It can be a suitable option to allocate a large amount of money to, as it's a much safer option than investing in individual stocks.
Details
But just how big could a $50,000 investment in a fund that tracks the S&P 500 grow to be worth in 25 years? Let's take a look.
Source
Originally published at www.fool.com.