Investing in the stock market can be daunting during periods of volatility, but it's a fantastic time to buy as we head into 2023.

Stock prices are down across the board, which means now is your chance to load up on quality investments for a fraction of the price. Once the market inevitably rebounds, you could potentially see significant returns.

While nobody can say for certain how the market will perform in 2023, there's one ETF I'm loading up on heading into next year: the Vanguard Growth ETF (VUG 0.17%).

The pros and cons of investing in a growth ETF

A growth ETF is a collection of stocks with the potential to earn above-average returns. The Vanguard Growth ETF contains 250 stocks from multiple industries, and the largest holdings include Apple, Microsoft, and Amazon.

The downside of a growth ETF is that these funds are often hit harder during periods of market turbulence. High-growth stocks tend to be more volatile in general, so this type of ETF will often fall further during a downturn than broad-market funds, such as an S&P 500 ETF.

The good news, though, is that they also tend to earn higher returns over time than broad-market funds.

For example, although the Vanguard Growth ETF is currently down nearly 30% over the past year (compared to the S&P 500's 15% decline), it's up roughly 354% since its inception in 2004 (while the S&P 500 is up around 250% in that time frame).

In other words, market slumps could be more severe in the short term for a growth ETF. But if you stay invested for the long run, you're more likely to see higher returns.

Could this ETF double your money?

Whether or not you'll be able to double your money in 2023 will depend largely on how the market performs in the coming year.

If the market continues its slump, there is a chance your portfolio could lose value in the near term. But if the market rebounds, you could see substantial returns in a relatively short period of time.

Investing is a long-term strategy, though, and if you give your investments several years (or even decades) to grow, you could stand to make a lot of money over time.

For example, say you invest $1,000 in the Vanguard Growth ETF right now, and you continue investing $100 per month. Historically, this fund has earned an average rate of return of just over 9% per year since its inception in 2004. At that rate, here's approximately how much you could potentially earn over time:

Number of Years Total Savings
1 $2,300
5 $8,700
10 $20,600
20 $67,000
30 $176,800

Source: Author's calculations via Investor.gov.

While growth ETFs can be more volatile than their broad-market counterparts, higher risk can come with the potential for higher rewards.

If you do choose to invest in this ETF, double-check that the rest of your portfolio is well diversified. Because high-growth stocks can be riskier, a diversified portfolio full of strong long-term investments can keep your money as safe as possible.

Nobody knows exactly what's in store for the market in 2023, so a long-term outlook is key right now. By investing in the right places and holding those investments for the long run, you could be on your way to accumulating hundreds of thousands of dollars or more in the stock market.