Investing in the stock market is one of the most effective ways for everyday people to build life-changing wealth, and you don’t need a lot of money or experience to get started.

Exchange-traded funds (ETFs) are a lower-effort way to gain exposure to the market, as they require far less research and up-front investment compared to buying individual stocks. Each ETF may contain dozens or hundreds of stocks, grouped together into a single fund. Just one share of an ETF can provide instant diversification, limiting your risk with next to no effort.

If you’re looking for a powerhouse investment that can build long-term wealth over time, the Vanguard Mega Cap Growth ETF (MGK -0.22%) could potentially turn a one-time investment of $1,000 into nearly half a million dollars. Here’s how.

A powerful investment with a track record of success

The Vanguard Mega Cap Growth ETF contains 69 stocks from companies classified as “megacap” — which generally refers to organizations with a market capitalization of more than $200 billion. These companies are among the largest in the world, as well as industry leaders with decades-long track records of consistent growth.

Most stocks in this fund are household names, ranging from tech behemoths like Nvidia and Apple to long-standing brands like Mastercard and Costco Wholesale. Because of their sheer size, megacap stocks can sometimes carry less risk than their smaller counterparts. While all stocks are subject to volatility, the biggest players are more likely to survive economic turbulence.

At the same time, though, this particular ETF only contains stocks with growth potential — meaning you’re more likely to see above-average returns over time. In fact, over the last 10 years, the Vanguard Mega Cap Growth ETF has significantly outperformed the S&P 500 (^GSPC -0.28%), with total returns of just over 405% compared to 239%.

MGK data by YCharts

Around 65% of this fund is allocated to stocks in the tech sector, an industry famous for its sky-high returns — and short-term volatility. While megacap stocks are more likely to survive economic downturns, be prepared for more severe fluctuations when you’re investing heavily in tech stocks.

Building life-changing wealth with next to no effort

Nobody can say for certain how this ETF or any investment will fare over time, as past performance doesn’t predict future returns. However, it can sometimes be helpful to examine historical returns to get an idea of what this fund is capable of achieving.

Over the last 10 years, the Vanguard Mega Cap Growth ETF has earned an average rate of return of 18.87% per year. At that rate, if you were to invest $1,000 right now and simply let it sit, you’d have just over $424,000 after 35 years — with zero additional contributions.

To really supercharge your wealth, you could invest a small amount each month. Say that instead of investing $1,000 right now, you contribute $50 every month. Here’s roughly what you could accumulate, depending on whether you continue earning 18% average annual returns or earn slightly lower returns of 15% or 12% per year, on average:

Data source: Author’s calculations via investor.gov.

Even if this ETF underperforms compared to its 10-year historical average, you could still earn hundreds of thousands of dollars by investing just $50 per month. If you can afford to invest more than that, you could earn exponentially more in total.

Investing in ETFs can be a simple, straightforward way to invest in the stock market with less hassle than buying individual stocks. With enough time and consistency, you could build a staggering amount of wealth while barely lifting a finger.

Katie Brockman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Costco Wholesale, Mastercard, and Nvidia. The Motley Fool has a disclosure policy.

I recently got a cool perk from my employer: $1,000 to invest however I want. The idea behind it is to help everyone at our company get familiar with investing, try out our internal tools, and learn about growing wealth with stocks.

I’ve dabbled in stock picking before — and let’s just say my win/loss ratio isn’t exactly Hall of Fame material.

So with this $1,000, I’m not rolling the dice or doing anything risky. I’m going back to the same boring-but-beautiful approach that’s worked for me all along… Index funds.

My “index and chill” strategy

I could spend hours analyzing charts, earnings reports, and news headlines. But I’ve tried that before and never found it either fun nor profitable.

So rather than chase individual stocks, I’m investing my money into a total stock market index fund — something like VTI (from Vanguard) or FZROX (from Fidelity). These index funds own thousands of companies across every sector, giving me instant diversification.

When the stock market goes up, my investment goes up too. When it drops, yeah, mine drops with it. But over time, the market’s gone up more than it’s gone down.

How my $1,000 could grow to $17,449

I’ve got a couple decades left on my investing horizon. So I’m trying to play the long game.

If this $1,000 investment grows at 10% annually (which is in line with the historical average return of the S&P 500) here’s what it could turn into:

Data source: Author’s calculations.

Of course, markets fluctuate and there are no guarantees. But historically, the U.S. market has bounced back from every downturn — and gone on to hit new highs each time.

So while I’m not saying this $1,000 is destined for exactly $17,449 (let’s not jinx it), I like my chances betting on the market as a whole.

This bonus was wired straight into my brokerage account. I keep most of my investments at Fidelity, because it has no account fees, no trade fees, and a massive menu of index funds I can choose from.

Read my full Fidelity review here if you’re curious why I chose it (and how it stacks up for beginners or long-haulers).

Other cool things about index funds

It’s not just this $1,000. I put nearly all my long-term money into index funds.

They’re simple, but also really flexible. Here’s why I love investing in index funds:

• They’re liquid — I can buy or sell anytime the market’s open, and in small or big amounts.
• Easy to hold in any account type — I own index funds in my Roth IRA, my traditional IRA, 401(k), my brokerage account… even my health savings account (HSA).
• Super low cost — With most brokerages, there are no trade commissions and no monthly account fees. Index funds also have low expense ratios.
• No ongoing management — I don’t need to check on anything or do any maintenance.

Another cool thing is I can automate investments. So putting in new money to invest each month can happen automatically on a set schedule. Easy!

Investing is a long game

So that’s what I’m doing with my $1,000 bonus — the most boring thing in the world. Putting it into a low-cost index fund and just… letting it slowly compound.

This strategy has already panned out well for me over the years, and I’ve got no reason to switch it up now.

If you’re thinking about doing something similar with your own money — whether it’s $100 or $1,000 — you don’t need to overthink it. You just need a setup that’s simple, low cost, and built for the long haul.

Check out all our favorite top-rated brokers here, and find the one that matches your investment goals.

We publish a lot of articles on how you might become a millionaire — and it’s true, you could become a millionaire. But young people can aim much higher than that: They could become multimillionaires, because they have a lot more time in which their money can grow for them.

Here’s a look at a handful of investments that have a lot of room to grow over the coming decades. See if you want to recommend any to your kids or grandkids. It’s rarely too early to get your kids investing and on the path to smart money management.

How money grows

First, though, here’s a review of how money grows, because it’s important to understand what’s possible:

Calculations by author via moneychimp.com.

See? Multimillionaire status is possible! It does take time, though. If your kid or grandkid is, say, 10, they have 50 years until they turn 60, which is a somewhat early age at which they might retire.

For compounding to do amazing work, you need three things: time, meaningful investments, and a good growth rate. Simply investing in the S&P 500 can be all you need. Over many decades, it has averaged annual returns close to 10%. I’ve been a little more conservative in the table above because 10% average returns are not guaranteed.

Here, then, are some investments to consider. I’m focusing on exchange-traded funds (ETFs) here, because they’re very much stock-like, while also being funds. They trade like stocks, but each of these is invested in an array of companies, offering instant diversification.

1. A simple S&P 500 index fund

A low-fee S&P 500 index fund is hard to beat, and even Warren Buffett has recommended it for most people. It will immediately have you invested in 500 of America’s biggest companies — including all of the “Magnificent Seven” — which are Apple, Amazon, Google parent Alphabet, Facebook parent Meta Platforms, Microsoft, Nvidia, and Tesla.

You might cast an even wider net by investing in an index fund that aims to deliver the performance of the total U.S. stock market, or one that tracks the total world stock market. Here are three solid broad-market index funds to consider:

• Vanguard S&P 500 ETF (VOO 0.34%)
• Vanguard Total Stock Market ETF (VTI 0.36%)
• Vanguard Total World Stock ETF (VT 0.39%)

The Vanguard S&P 500 ETF has averaged annual gains of about 13% over the past decade, and 16.2% over the past five years.

2. A growth-oriented broad index fund

If you want to aim for a little faster growth, consider the Vanguard Growth ETF (VUG 0.20%). It tracks the CRSP U.S. Large Cap Growth Index, which is focused on faster-growing large companies. It recently held 166 stocks, with about half of them in the technology sector and close to 27% divided between the consumer cyclical and communication services sectors.

Over the past decade, this ETF has averaged annual gains of 15.5% — and 17.3% over the past five years.

3. A powerful technology ETF

To aim for even fatter returns (while accepting more risk), consider one or two ETFs such as the Technology Select Sector SPDR ETF (XLK 0.29%). It recently held 69 stocks, involved in businesses such as semiconductor equipment, internet software and services, IT consulting services, computers, and peripherals. Over the past decade, this ETF has averaged annual gains of 20.3%, and 20.2% over the past five years.

Note, though, that when market downturns happen, as they occasionally do, high-flying growth stocks such as those in ETFs such as these may drop sharply in value — often recovering eventually.

Keep in mind

As you aim to help your grandkids (or kids) become multimillionaires, here are some things to keep in mind:

• Whether you’re buying into one of these ETFs or some stocks, buy to hold. That means you keep an eye on the investments, in case some situation develops where selling might be smart. With these broad funds, though, holding for decades is more likely to be safe and effective.
• Note, too, that the amount invested every year matters a lot. Young people may only manage, say, $100 or $500 per month. But as they grow and enter the workforce, it’s important to keep investing and to invest more each year, as they’re able. Their earliest invested dollars are the most powerful, as they have the most time in which to grow. They may need to take some of this money out for school or a down payment, but it’s good to keep as much as they can growing for their far-off futures.
• It’s also vital to keep inflation in mind. We might think that retiring with $2 million can put us on easy street, but in 50 years, that sum might have the purchasing power of only $400,000 or so. Thus, for best results, young people should aim to invest aggressively. At some point, perhaps as they approach and enter middle age, they may find that their portfolios have grown enough to fund a comfortable retirement. At that point they might just retire, or keep saving and investing, but with a little less urgency.

So do your young loved ones a favor, and give them a nudge in the direction of financial independence.

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Selena Maranjian has positions in Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Vanguard Index Funds-Vanguard Growth ETF. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, Tesla, Vanguard Index Funds-Vanguard Growth ETF, Vanguard S&P 500 ETF, and Vanguard Total Stock Market ETF. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.