It’s also possible to make a lot of money with S&P 500 ETFs. Since its inception, the S&P 500 has earned an average return of around 10% per year. In other words, despite its short-term volatility, its long-term returns have averaged out to around 10% per year.
If you were to invest, say, $400 per month while earning a 10% average annual return, you’d have around $1.3 million after 35 years. While it takes time to become a millionaire, S&P 500 ETFs are hands-off investments. All you need to do is invest consistently and then sit back and watch your money grow.
2. Dividend funds
Dividend stocks are investments that pay you just for owning them. Each quarter or year, you’ll receive a small dividend payment for each share you own.
A dividend fund is a group of dividend stocks bundled together into a single investment. By investing in a dividend fund, you don’t need to worry about buying individual stocks if that’s not something you’re interested in. Dividend payments vary by stock, but you’ll generally earn a couple of dollars per share in dividends. While that might not sound like much, it can add up to more than you think.
