It's hard not to be impressed by the Vanguard Information Technology ETF, which has averaged annual gains of about 24% over the past decade. If it can match that pace over the next 20 years, $1,000 invested in this exchange-traded fund (ETF) today will be worth nearly $74,000 in 2046!
Image source: Getty Images.
But that's a big if. And if the stock market swoons sometime this year, it could take lots of growth stocks and growth-focused ETFs down with it, sharply. So permit me instead to suggest an ETF that I own myself, and that helps me sleep better at night: the Schwab US Dividend Equity ETF (SCHD -1.74%).
NYSEMKT: SCHD
Key Data Points
I love it because it offers both price appreciation and dividend income. The S&P 500 recently had a dividend yield of merely 1%. But the Schwab ETF's yield was 3.3%, more than three times bigger. It's been a very respectable performer, too:
|
Period |
Average annual gain |
|---|---|
|
Past 3 years |
14.22% |
|
Past 5 years |
9.57% |
|
Past 10 years |
12.64% |
Source: Morningstar.com, as of July 27, 2026.
How could the Schwab US Dividend Equity ETF grow your money?
Let's say you make a single $1,000 investment in the Schwab ETF. And let's presume that it averages annual gains of 10% over the coming 20 years. (For context, the stock market has averaged annual returns of close to 10% over many decades.) If so, you'll end up with a stake worth about $6,700.
That's way less than $74,000, I know. But it should be a less volatile ride -- and during market downturns, you'll still collect dividend income.
You can improve on that $6,700 a lot, too. Simply make more than a one-time $1,000 investment. Put in $1,000 per month, or $12,000 annually, and you may end 20 years with ... $687,000!
That's not guaranteed, of course. The ETF could average more or less than 10% annually. Still, this fund is well worth considering for your hard-earned dollars. You can profit well -- without picking any stocks. Leave that work to the Schwab US Dividend Equity ETF.
