If I Were in My 20s, I'd Buy This Magnificent Vanguard ETF and Hold It Forever
The S&P 500 (SNPINDEX: ^GSPC) is an index of 500 stocks from 11 different sectors of the U.S. economy. It has delivered a compound annual return of about 10% since it was established in 1957, even after accounting for every sell-off, correction, and bear market along the way. Therefore, buying an S&P 500 index fund is one of the surest ways to build wealth in the stock market over the long term. However, young investors in their 20s have time on their side, so they might be willing to endure a little more volatility for an opportunity to earn higher returns. The Vanguard Morningstar Mega Cap Growth ETF (NYSEMKT: MGK) is an exchange-traded fund (ETF) that exclusively holds 56 of the U.S.'s most valuable growth stocks, and thanks to its high degree of exposure to the technology sector, it has outperformed the S&P 500 every year, on average, since it launched in 2007. If I were in my 20s, here's why I'd buy the Vanguard ETF with the intention of holding it forever. Continue reading