What Are the Best Vanguard ETFs to Buy Now to Retire a Millionaire?

The sooner you start investing, the easier it is to retire a millionaire. The Vanguard family of index exchange-traded funds (ETFs) offers some attractive, low-cost options to help you build a million-dollar portfolio. Here are three of my top choices to start buying right now: The Vanguard S&P 500 ETF (NYSEMKT: VOO), the Vanguard Growth ETF (NYSEMKT: VUG), and the Vanguard Information Technology ETF (NYSEMKT: VGT).

All three ETFs have strong long-term track records. However, making an initial investment and sitting back isn't going to build you a million-dollar portfolio. Instead, the key is to consistently invest in these ETFs through what is known as a dollar-cost averaging strategy. With this strategy, you routinely invest a set amount into the ETF(s) of your choice, regardless of how the market is performing. Over time, this could help you retire a millionaire.

Let's take a closer look at these three Vanguard ETFs and how they can help you retire a millionaire.

The Vanguard S&P 500 ETF

The Vanguard S&P 500 ETF is the most popular ETF on the planet, and for good reason. It tracks the performance of the S&P 500, which consists of the 500 largest stocks in the U.S. and is widely considered the benchmark for the U.S. stock market. While other ETFs track the S&P 500's performance, the Vanguard S&P 500 ETF's scant expense ratio of just 0.03% is a big reason why it has grown to become the largest ETF in the world.

The immediate diversification that the Vanguard S&P 500 ETF gives you between growth and value stocks, as well as across sectors, is a great reason why it works as a core holding for most investors. The ETF also has a strong performance track record, generating an average annual return of 12.8% over the past 10 years, as of the end of May.

With that type of return, you could easily retire a millionaire over time. For example, if you start with a modest $1,000 investment and add $500 a month over the next 30 years, with an average annual return of 12.8%, you'd finish with around a $1.8 million investment.

Time, though, is the key. If you only have 20 years to get to $1 million at that return, you'd need to start with $5,000 and make an additional $1,000 investment each month to end up with around $1 million.

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The Vanguard Growth ETF

For investors looking for a bit more juice in their returns, the Vanguard Growth ETF is a great option. The index tracks the performance of the CRSP US Large Cap Growth Index, which is essentially the growth half of the S&P 500. Given the pace of innovation and technological advancements, growth stocks have been helping lead the market higher over the past few decades.

This can be seen in the ETF's returns, which have an average annual return of 15.3% over the past decade, as of the end of May. While that may not sound like a big difference compared to the Vanguard S&P 500 ETF, on a cumulative basis, that's a 315.5% return versus 234.2% for the S&P 500 ETF. That adds up a lot over time.

For example, at an average annual return of 15.3%, if you initially invest $1,000 and make $500 incremental investments each month, you'd have $3 million after 30 years. If you only have 20 years and want to get to $2 million, you'd need to start with $1,500 and invest an additional $1,500 each month to reach that goal.

The Vanguard Information Technology ETF

The Vanguard Information Technology ETF is a great option if you're looking to add more tech exposure. Given its lack of diversity, I'd view it more as a supplementary holding that can help boost returns. However, with the advent of artificial intelligence (AI), it can be a pretty good idea to invest in top tech companies.

The Vanguard Information Technology ETF tracks the performance of the MSCI US Investable Market Information Technology 25/50 Index. However, with its top three holdings of Nvidia, Microsoft, and Apple making up about 45% of its portfolio, this is a highly concentrated fund. That said, it's also been the best-performing Vanguard ETF over the past decade, with a 19.8% average annual return as of the end of May.

With those kinds of returns, a $500 starting investment plus $500 a month could grow into $1.2 million over 20 years. Of course, past performance isn't a guarantee, and with a concentrated portfolio like this, the risk is higher, too. However, if you're young and have time, this could be a nice addition to your portfolio that could help you retire a millionaire.

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Geoffrey Seiler has positions in Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Apple, Microsoft, Nvidia, Vanguard Index Funds-Vanguard Growth ETF, and Vanguard S&P 500 ETF. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.