Investing in the stock market is one of the easiest and most effective ways to build life-changing wealth, but choosing the right investments is critical.

Some investments promise to make you rich overnight, but they carry so much risk you're likely to lose more than you gain. Other investments may be extremely low-risk but experience such low returns it's difficult to grow your savings.

While there's no single correct way to invest, and everyone will have different preferences, there's one ETF that can both limit your risk and help maximize your earnings. With enough luck, you may even be able to double your money in 2024.

Stack of hundred dollar bills against a yellow background.

Image source: Getty Images.

Boosting your earnings with a growth ETF

The Vanguard Growth ETF (VUG 1.66%) can be a smart option for those aiming to beat the market with minimal effort.

This fund contains 221 stocks with the potential for above-average growth. The top 10 holdings make up roughly half of the fund's total composition, and these stocks are from behemoth companies such as Apple, Microsoft, Amazon, Tesla, and Nvidia. The rest of the ETF, then, is made up of dozens of smaller stocks from up-and-coming companies.

This balance of large and small stocks can help limit your risk while maximizing your rewards. Blue chip stocks may not experience explosive growth, but they are far more stable and safer than many smaller stocks. Smaller companies carry more risk, but if even one of them grows into a power player, you could potentially make a lot of money.

Also, while growth ETFs tend to be hit hard during periods of volatility, they often soar when the market is thriving. Over the past 10 years, for example, the Vanguard Growth ETF has surged by a whopping 238%. Meanwhile, the S&P 500 is only up by around 160% in that time.

^SPX Chart

^SPX data by YCharts.

In the near term, then, this type of fund may be more volatile than, say, an S&P 500 ETF. But if you stay invested for the long haul, you could potentially earn higher-than-average returns.

Can you double your money in 2024?

Whether or not this ETF will double your money in the next year will depend largely on how the market performs overall. In recent weeks, stock prices have been surging, which is promising news for this investment. But if the market takes a turn for the worse, this ETF could quickly lose value.

If the market fares well, it's possible that this ETF could double your money in as little as a year. But if you're willing to stay invested for longer, you could earn far more.

Say, for example, you invest $1,000 in the Vanguard Growth ETF today and continue investing $100 per month. Over the past 10 years, this fund has earned an average annual return of close to 14% per year. But to play it safe, let's assume you earn only a 12% average return per year -- just slightly higher than the market's historic average.

At that rate, here's approximately how much you could earn over time, depending on how many years you have to invest:

Number of Years Total Portfolio Value
1 $2,300
10 $24,200
20 $96,100
30 $319,600
40 $1,013,600

Data source: Author's calculations via investor.gov.

If you choose to invest in the Vanguard Growth ETF, be sure that the rest of your portfolio is well diversified. While this ETF does aim to limit risk through its mix of stocks, growth ETFs in general still can be more volatile than other funds. When this ETF is part of a portfolio full of healthy, long-term investments, your money will be safe no matter what the market does.

Investing in the stock market could help you make a lot of money over time, but the right investments are key. If you're able to keep a long-term outlook and are willing to stick it out through periods of volatility, the Vanguard Growth ETF could be a good fit for your portfolio.