2 Vanguard ETFs That Could Turn $400 Per Month Into $1 Million

Investing regularly in stocks can be an effective way to generate great returns. The key thing is to have a plan and to take the guesswork out of your strategy. Putting money into an exchange-traded fund (ETF) on a regular basis can drastically simplify your approach and eliminate the temptation to try and overanalyze the markets.

If you can afford to set aside and invest $400 each month, that can be sufficient to build a portfolio that one day will be worth $1 million. Assuming you invest that much each month and you average an annual return of 10%, which is in line with the S&P 500's long-term average, it would take approximately 31 years for your investment to grow to be worth $1 million.

A couple of Vanguard ETFs that can be ideal options for this type of long-term strategy are the Vanguard Russell 1000 Growth ETF (NASDAQ: VONG) and the Vanguard Information Technology ETF (NYSEMKT: VGT). Here's why they can be great funds to invest in on a regular basis.

Image source: Getty Images.

Vanguard Russell 1000 Growth ETF

The Vanguard Russell 1000 Growth ETF holds nearly 400 stocks in its portfolio. It focuses on large U.S. stocks that have promising long-term growth potential. While tech plays a big role, accounting for 60% of its holdings, it also provides you with significant exposure to consumer discretionary, industrial, and healthcare stocks.

The fund's expense ratio of 0.06% is incredibly low and can ensure that your costs from owning the ETF over the long term are relatively minor. By having a position in top stocks such as Nvidia, Microsoft, and Eli Lilly, you don't have to worry about whether you're investing in the right stocks, as the top growth stocks in this fund are iconic companies with strong financials, and that still have plenty of room to grow. For long-term investors, this can be a no-brainer investment to pile money into on a recurring basis.

Vanguard Information Technology ETF

Another top Vanguard fund to buy and hold is the Vanguard Information Technology ETF. In the short term, there is definitely some risk with having too much exposure to tech, given the high valuations in the market these days. But if your goal is to hold for the long term, then it's not as big a concern in the grand scheme of things.

Tech stocks can be volatile, but they also have the potential to generate significant, life-changing returns. Investing in the Vanguard Information Technology ETF, which gives you broad exposure to the tech sector, can potentially set you up for market-beating returns in the long run. That means you could get to the $1 million mark quicker if the fund averages an annual return of more than 10%.

This ETF holds 320 stocks right now, with Nvidia, Apple, and Microsoft accounting for 45% of its entire portfolio. There's undoubtedly some risk here in the short term, but over the long haul, this can be an excellent investment to hang on to.

David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.