Prediction: Investing in These 2 Unstoppable Vanguard ETFs Could Set You Up for Life

Key Points

• Investing in ETFs can help you generate long-term wealth with minimal effort on your part.

• Growth ETFs and tech funds can set you up for significantly higher-than-average returns.

• Before you buy, though, there are a few risk factors to consider.

• 10 stocks we like better than Vanguard Information Technology ETF ›

The right investments can be life-changing. Even if you're not a stock market expert, exchange-traded funds (ETFs) can help you build wealth that will last a lifetime with next to no effort on your end.

Growth ETFs, in particular, are designed to beat the market over time. Each fund contains stocks with the potential for above-average returns, potentially helping you earn hundreds of thousands of dollars more than if you were to invest in a broad-market fund like an S&P 500 (SNPINDEX: ^GSPC) ETF.

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Investing in the right places is critical, though, and there are two Vanguard ETFs that could set you up for life while barely lifting a finger.

Image source: Getty Images.

1. Vanguard Mega Cap Growth ETF

The Vanguard Mega Cap Growth ETF (NYSEMKT: MGK) contains 69 megacap stocks -- which are generally defined as stocks from companies with a market capitalization of at least $200 billion. For context, large-cap stocks have a market cap of at least $10 billion.

Among the stocks within this ETF, the median market cap is a staggering $2.3 trillion. These companies are among the largest in the world, and by owning even one share of this fund, you'll instantly own a stake in every one of these stocks.

Megacap stocks have been seriously outperforming the market in recent years, and this ETF has reaped those rewards. Over the last 10 years, the Vanguard Mega Cap Growth ETF has earned an average rate of return of just under 18% per year.

While there are no guarantees that it will continue to earn these types of returns, it can still be helpful to see roughly how much you might be able to accumulate with consistent investing.

Say you have $100 per month to invest. Let's also assume that this ETF continues to earn an 18% average annual return, and we can compare that to the market's historic average of 10% per year. In both cases, here's approximately what you could accumulate over time.

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

Again, nobody can say whether this ETF will continue earning returns in line with its 10-year average. But even if it falls short of that, you could still potentially accumulate hundreds of thousands of dollars with consistent monthly contributions.

2. Vanguard Information Technology ETF

The Vanguard Information Technology ETF (NYSEMKT: VGT) is a tech-focused fund that includes 317 stocks from all corners of the technology industry.

Investing in an industry-specific ETF can be a great way to gain exposure to a particular sector of the market without having to research individual stocks. When you're investing in hundreds of stocks at a time, that can also help increase diversification and reduce risk.

This ETF, in particular, can be a smart option because of its mix of large companies and up-and-coming stocks. Nvidia, Microsoft, and Apple round out the fund's top three holdings. Combined, these three stocks alone make up more than 46% of the entire fund.

Behemoth companies like these can still face volatility, but they're more likely to recover from downturns. But because this fund also contains dozens of smaller stocks with the potential for explosive growth, if even one of them becomes a superstar performer, you could see substantial returns.

Over the last 10 years, the Vanguard Information Technology ETF has earned a whopping 22% average annual return. If it manages to keep up with those returns over time, here's approximately how much you could earn in total by investing $100 per month.

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

One major risk to be aware of, though, is that tech companies can be incredibly volatile in the short term. This sector often experiences stomach-churning ups and downs, even if these stocks do often earn positive total returns over time.

Before you invest in any tech-focused ETF, be sure you're willing to hold your investment for at least five to seven years, or ideally a few decades. The longer you keep your money in the market, the less of a toll volatility will take on your portfolio.

Investing in ETFs is a fantastic way to generate long-term wealth. As part of a well-diversified portfolio, the Vanguard Mega Cap Growth ETF and the Vanguard Information Technology ETF could help supercharge your savings over time.

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Katie Brockman has positions in Vanguard Information Technology ETF. The Motley Fool has positions in and recommends Apple, Microsoft, and Nvidia. 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.