This Unstoppable Vanguard ETF Could Make You a Millionaire With Just $5 Per Day

Becoming a stock market millionaire is more achievable than it might seem. You don't need thousands of dollars or a wealth of investing knowledge to get started, but you do need the right investment and some patience.

Investing in a growth ETF is one of the simplest ways to build substantial wealth, as these are passive investments that require next to no effort on your part. Owning just one share of an ETF can create instant diversification, and these investments require just a fraction of the research involved in buying individual stocks.

If you're looking for a high-powered investment that could potentially earn you over $1 million with just $5 per day, the Vanguard S&P 500 Growth ETF (NYSEMKT: VOOG) could be a fantastic buy.

Image source: Getty Images.

A powerful investment with built-in risk protection

The Vanguard S&P 500 Growth ETF is similar to an S&P 500-tracking fund, but it's designed to earn above-average returns over time.

The S&P 500 (SNPINDEX: ^GSPC) itself contains stocks from 500 of the largest and strongest companies in the U.S. Most of these businesses are industry leaders, from tech giants like Apple and Nvidia to century-old household names like Coca-Cola and Clorox.

While an S&P 500 ETF includes all 500 of these companies, the Vanguard S&P 500 Growth ETF includes only 214 stocks with the highest growth potential. Investors in this ETF essentially get the best of both worlds: exposure to some of the largest U.S. companies with a long history of surviving economic hardship, as well as the potential for higher-than-average returns.

This mix of risk and reward puts this particular ETF at an advantage over some other growth-focused funds. Smaller stocks may have more potential for explosive returns, but they also carry more risk. Investing solely in large-cap stocks from the S&P 500 can limit your risk, especially during market downturns.

Building a million-dollar portfolio

There's no safe way to generate massive amounts of money overnight in the stock market, so building a million-dollar investment fund will generally take decades. But the sooner you get started, the less you'll need to contribute each day or month to see significant gains.

Over the last 10 years, the Vanguard S&P 500 Growth ETF has earned an average rate of return of 17.49% per year. There are no guarantees that this fund will continue earning returns at that rate, as past performance doesn't predict future returns.

But for example's sake, let's say that you do continue earning a 17.49% average annual return. If you were to invest just $5 per day (or around $150 per month), here's approximately how much you could accumulate over time:

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

In this scenario, it would take roughly 30 years to surpass $1 million in savings by investing $5 per day. If you can't invest that long, though, you can still accumulate life-changing wealth by letting your money grow for a couple of decades.

But what if your investment underperforms compared to the last decade? That's always a possibility, but the good news is that you can still generate significant wealth even with lower returns.

For example, let's say that instead of earning 17.49% average annual returns, as this ETF has done over the last 10 years, your investment only earns average returns of 13% per year -- which is only slightly higher than the market's historic average return of 10% per year. If you wanted to reach $1 million in total, here's roughly what you'd need to invest each month or day to get there:

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

Regardless of how much you can afford to invest, getting started early is key. The more time you can give your money to grow, the less you'll need to contribute to reach $1 million or more.

The Vanguard S&P 500 Growth ETF is a powerhouse of an investment that requires very little effort on your part. By investing small amounts consistently and staying in the market for as long as possible, you'll be on your way to becoming a stock market millionaire.

Katie Brockman has positions in Vanguard Admiral Funds-Vanguard S&P 500 Growth ETF. The Motley Fool has positions in and recommends Apple and Nvidia. The Motley Fool has a disclosure policy.