<div id="readability-page-1"><div> <h2>Key Points</h2><ul><li>Young adults with median incomes that save 20% of post-tax earnings can build a sizable investment portfolio by retirement.</li><li>The Vanguard S&amp;P 500 Growth ETF returned 786% (15.6% annually) over the past 15 years because of the adoption of cloud and mobile technologies.</li><li>The Vanguard S&amp;P 500 Growth ETF could deliver monster returns in the years ahead as the AI revolution reshapes the economy.</li><li>10 stocks we like better than Vanguard Admiral Funds - Vanguard S&amp;P 500 Growth ETF ›</li></ul>The median annual income for full-time workers aged 25 to 34 was $59,280 during the first quarter, according to the Labor Department. That means after-tax earnings would be about $45,175 in the worst-case scenario. Financial planners usually recommend saving 20% of post-tax earnings for retirement, which would be about $9,000 per year (or $750 per month) for the median worker.Even a percentage of that figure invested wisely could grow into a sizable portfolio in time. For instance, history suggests $500 invested monthly in the Vanguard S&amp;P 500 Growth ETF (NYSEMKT: VOOG) could be worth $1.4 million (or more) after three decades. Here are the important details.Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an &#34;Indispensable Monopoly&#34; providing the critical technology Nvidia and Intel both need. Continue »<img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg2NjczNS9hcnRpZmljaWFsLWludGVsbGlnZW5jZS03LmpwZyZ3PTcwMA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="466" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg2NjczNS9hcnRpZmljaWFsLWludGVsbGlnZW5jZS03LmpwZyZ3PTcwMA"/>Image source: Getty Images. <h2>The Vanguard S&amp;P 500 Growth ETF is heavily invested in technology and communications stocks</h2>The Vanguard S&amp;P 500 Growth ETF measures the performance of 144 S&amp;P 500 companies classified as growth stocks based on three metrics: the 12-month percentage change in share price (momentum), the three-year change in revenue per share, and the three-year change in earnings per share over current price.S&amp;P 500 stocks are sorted based on their scores across those three metrics, and the ones that rank among the top 33% of the index by market value are considered growth stocks. The Vanguard S&amp;P 500 Growth ETF tracks those companies. The index fund is most heavily weighted toward the technology and communications services sectors. The 10 largest holdings are, as listed by weight:<ol> <li>Nvidia: 14.6%</li> <li>Alphabet: 11.1%</li> <li>Microsoft: 9.5%</li> <li>Apple: 6.4%</li> <li>Broadcom: 5.1%</li> <li>Meta Platforms: 4.3%</li> <li>Amazon: 3.7%</li> <li>Berkshire Hathaway: 3%</li> <li>Eli Lilly: 2.5%</li> <li>Tesla: 2.2%</li> </ol>The Vanguard S&amp;P 500 Growth ETF achieved a total return of 786% (15.6% annually) during the past 15 years, outpacing the broader S&amp;P 500's total return of 602% (13.8% annually). The index fund performed so well because of its heavy exposure to technology and communications stocks, which benefited greatly from the adoption of cloud and mobile technologies during that period.Many experts believe artificial intelligence (AI) will be equally transformative, if not more so. Microsoft co-founder Bill Gates says the technology will be as revolutionary as the internet. So the Vanguard S&amp;P 500 Growth ETF could generate similar returns over the next 15 years as the AI boom boosts productivity and efficiency across the economy.Even so, I will still assume a more conservative return of 12% annually. At that pace, $500 invested monthly in this Vanguard index fund would be worth about $105,200 after one decade, $432,300 after two decades, and $1.4 million after three decades. That makes this fund an attractive investment for investors comfortable with volatile growth stocks, especially because it has a low expense ratio of 0.07%.<h2>Drawdowns are normal, not a reason to panic</h2>Most often, the secret to making money in the stock market is patience and resolve. The Vanguard S&amp;P 500 Growth ETF declined at least 10% from its high on nine occasions during the past 15 years, but the fund still returned 15.6% annually over that period. Similar volatility is likely in the future, but investors need to ignore short-term noise.In addition, young investors need not choose between the Vanguard S&amp;P 500 Growth ETF and individual stocks. It's fine to own both. In the last section, my hypothetical investor added $500 each month to the index fund. But recall that the median worker aged 25 to 34 should save about $750 per month. That leaves $250 per month for individual stocks in my hypothetical scenario.Why do that? Think of the Vanguard S&amp;P 500 Growth ETF as your baseline exposure to the largest growth stocks. History says patience will be rewarded with strong returns. But you could do even better by owning individual stocks alongside the index fund. However, if your stocks underperform, you should still earn a reasonably good return over time.<h2>Should you buy stock in Vanguard Admiral Funds - Vanguard S&amp;P 500 Growth ETF right now?</h2> Before you buy stock in Vanguard Admiral Funds - Vanguard S&amp;P 500 Growth ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vanguard Admiral Funds - Vanguard S&amp;P 500 Growth ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $502,837!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,241,433!* Now, it’s worth noting Stock Advisor’s total average return is 977% — a market-crushing outperformance compared to 200% for the S&amp;P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of April 24, 2026. Trevor Jennewine has positions in Amazon, Nvidia, and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Berkshire Hathaway, Broadcom, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. </div></div>

.SPX

VOOG

SCHG

IUSG

The Vanguard S&P 500 Growth ETF has shown a remarkable return of 786% over the past 15 years, driven by technology and communications stocks. Young adults saving 20% of their post-tax income could potentially grow a $500 monthly investment into a $1.4 million portfolio over 30 years, especially as AI technology evolves. Despite past volatility, the fund's low expense ratio of 0.07% and strong historical performance make it an attractive option for investors. Experts predict AI will significantly impact productivity, suggesting similar future returns for the ETF.

- Young adults saving 20% of their post-tax earnings can build substantial investment portfolios by retirement, with an example showing a $500 monthly investment in the Vanguard S&P 500 Growth ETF potentially growing to $1.4 million over 30 years.  
- The ETF achieved a total return of 786% over the past 15 years, largely due to its heavy investment in technology stocks, and experts anticipate similar returns as the AI revolution unfolds.  
- While volatility is expected, investors should remain patient and may benefit from diversifying with individual stocks alongside the ETF for potentially higher returns.

nasdaq

S&P 500

VG S&P 500 Grw

Schw Us L-Cp Grw

VG Growth

iShares Core S&P US Growth

ISHRS Russ 1000 Growth

VG S-Cp Grw

VG Mga Cap 300 Grw

Invesco QQQ Trust

NVIDIA

Alphabet

Alphabet - C

Microsoft

Apple

Broadcom

Meta Platforms

Amazon

Berkshire Hathaway

Berkshire Hathaway B

Eli Lilly

Tesla

NVIDIA Corporation

This Vanguard Index Fund Could Turn $500 Per Month Into a $1.4 Million Portfolio as the AI Boom Unfolds