Exchange-traded funds could be a great option for many investors, as they are investments that are low-maintenance. Each ETF might contain hundreds or even thousands of stocks, making portfolio that is instantly diversified, and the only thing you need to do is invest often.

While there are numerous ETFs to pick from, there is one type of fund, specifically, that might help you accumulate over $100,000 with very little effort being put in: S&P 500 ETFs.

Choosing the best ETF

S&P 500 ETFs can be a great investment for a lot of reasons. This kind of fund keeps track of the S&P 500 index. This means it does include the same stocks that are in the index, and it aims to replicate its performance.

The S&P 500 has stocks from 500 of the strongest and largest corporations in the United States, and it has earned positive avg. returns for decades.

Although the index has experienced short-term volatility, it has seen a recovery after every crash it has ever experienced. Historically, it has also earned an avg. rate of return of about 10% each year.

Your portfolio would experience downturns that wouldn’t last long if you were to invest in an S&P 500 ETF. Over time, you are almost guaranteed to have positive average returns.

How much could you earn by investing in an S&P 500 ETF?

The best part about trading the stock market is that it doesn’t require a large amount of money to get started investing. By investing a small amount each month, you could potentially accumulate thousands of dollars with time.

Let’s say you invested $1,000 right now. Let us also say you invested that $1,000 in an S&P 500 ETF that is earning an average 10% yearly return.

To earn the maximum profit in the stock market, it is best to invest often and give your investments time to grow.

In this scenario, let’s say that you are investing $150 each month in addition to your starting $1,000 investment. Assuming your investments get a 10% average yearly return, you would have about $110,000 after 20 years.

If you would like to earn even more, you could either increase your monthly investments or keep investing for longer durations.

For example, if you invested $300 each month each month, you would end up with about $213,000 after just 20 years. Or, if you were to continue investing $150 each month but for 35 years, you would have $516,000 in total.

Where to start

There are a lot of S&P 500 ETFs to pick from, and many of them are similar to one another. Their performances will be about the same because they are all tracking the same index.

Some of the more popular funds include the iShares Core S&P 500 ETF, Vanguard S&P 500 ETF and SPDR S&P 500 ETF. These funds have some of the smallest fees, making them much more affordable options to choose from for investors.

Regardless of which stock you invest your money, maintaining a longer-term outlook is the key. By investing the money, you can afford every month and giving your investment a lot of time to grow, you could earn more than you might think over time.