Prediction: Here's What a $5,000 Investment in VUG Could Be Worth in 20 Years
Here's how much an investment in VUG can grow under different scenarios.
Overview
The stock market has proven for decades that it can turn even modest investments into substantial sums of money, given enough time and an appropriate rate of return.
The Vanguard Growth ETF (NYSEMKT: VUG) is one of the funds that has done just that, returning an average of 17.9% annually over the past decade.
Details
It would be unlikely for this fund to deliver that kind of annual return over the next 20 years, but for the sake of argument, let's run the numbers anyway. A $5,000 initial investment that is bought and held for 20 years, earning a 17.9% average annual return, would grow to approximately $134,700. That's an incredibly impressive return, but an unrealistic expectation for the future.
Source
Originally published at www.fool.com.
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