As the COVID-19 pandemic persists, millions of Americans are hoping for a third round of stimulus checks to provide relief.
Congress hasn't reached an agreement yet about the size of the checks or who will receive one. However, Democrats and President Biden are urging lawmakers to support $1,400 checks for individuals earning $75,000 or less per year and married couples earning $150,000 or less per year.
Investing your stimulus check is a great option, and it can help you build wealth with next to no effort. Before you invest, however, make sure your bills are paid and you have a solid emergency fund. To make as much money as possible in the stock market, you'll need to leave your investments alone for at least a few years -- so don't invest any cash you may need in the relatively near future.
If you're ready to invest, you have a few options. These three investments can potentially double your $1,400 check without your having to lift a finger.
1. Vanguard S&P 500 ETF (VOO)
The Vanguard S&P 500 ETF (VOO -0.50%) is an exchange-traded fund that tracks the S&P 500. This means that the fund includes all the stocks within the S&P 500, which are some of the largest and strongest companies in the U.S. The S&P 500 ETF carries less risk than some other types of investments.
This fund has earned an average return of 15% per year since its inception in 2010. If you were to invest $1,400 right now earning a 15% annual return, you'd double your investment in about five years, assuming you made no other contributions.
Simply invest your $1,400, then sit back and wait.
2. Schwab U.S. Large-Cap ETF (SCHX)
The Schwab U.S. Large-Cap ETF (SCHX -0.50%) includes more than 700 stocks from large companies. Like the S&P 500 ETF, it's less risky than some other investments because it contains stocks from some of the strongest and most stable businesses in the country.
This fund also has earned an average return of around 15% per year since its inception. So, again, you could invest your $1,400 now and watch it double within five years.
If you want to see faster growth, you could continue investing a little each month. For example, if you were to invest $1,400 now and then also invest $30 each month, you'd double your initial investment in just over two years. If you continued investing at that rate, you'd have close to $13,000 saved after 10 years.
3. iShares Russell 1000 Growth ETF (IWF)
The iShares Russell 1000 Growth ETF (IWF -0.85%) is a little different than the other two investments. Rather than focusing solely on large companies, it includes organizations that have the potential for rapid growth.
Growth ETFs can be riskier than funds that only contain large corporations because fast-growing companies tend to be more volatile than well-established businesses. However, many of the companies included in the iShares Growth ETF are both fast-growing and well-established -- like Amazon, Apple, Microsoft, Facebook, and Alphabet (Google's parent company). All of these businesses have experienced rapid growth, but they're also some of the biggest organizations in the world.
Over the past five years, this fund has experienced an average return of close to 22% per year. By investing $1,400 in this fund right now, you'd double your investment in around three years.
Investing in the stock market is one of the best ways to grow your money. Patience is key since it takes time to see substantial returns. But by investing in the right places, you can build wealth with next to no effort on your part.