No one financial goal applies to everyone. Financial situations vary so much that what one person strives for could completely differ from someone else’s priorities.

That said, $1 million has long been a recognized mark of financial success. I must admit, there’s something about seeing a second comma in a number that feels validating and comforting.

The good news is that it doesn’t take “hitting it big” or generational returns to make a million-dollar portfolio a reality. In many cases, all it takes is consistent investments in an exchange-traded fund (ETF) like the Vanguard S&P 500 ETF (NYSEMKT: VOO).

If there’s one ETF to lean on en route to a million-dollar portfolio, it would be this one. Here’s why.

A history of impressive and encouraging returns

This ETF was created in Sept. 2010, and since then it has been on an impressive run, averaging over a 12.4% annual return and over 14.5% annual total returns.

It’s been repeated plenty of times that “past results don’t guarantee future performance.” However, if this trend continues, here’s how long it would take you to hit the million-dollar mark, averaging 12% annual returns at different monthly contributions.

Calculations by author. Years rounded to the nearest whole year.

You don’t need a lump sum of money to invest to get to a million-dollar portfolio; you need consistent investments over time.

Getting exposure to some of the world’s best companies

I always like to say that investing in an S&P 500 ETF is akin to investing in the U.S. economy. Of course, the U.S. economy runs off more than just 500 companies, but their influence is undeniable considering the size and scope of the companies in the S&P 500 index. Here are the top 10 holdings in this ETF (as of Aug. 31):

• Apple: 6.97%

• Microsoft: 6.54%

• Nvidia: 6.20%

• Amazon: 3.45%

• Meta Platforms: 2.41%

• Alphabet (Class A): 2.03%

• Berkshire Hathaway (Class B): 1.82%

• Alphabet (Class C): 1.70%

• Eli Lilly: 1.62%

• Broadcom: 1.50%

When you’re trying to build a million-dollar portfolio, the one thing you need is consistency. There will inevitably be ups and downs along the way (no stock or ETF is exempt from volatility), but you want companies with a history of long-term growth leading the way — and that’s what these have proven.

Don’t overlook how much money you can save in fees

An underrated part of this ETF is the low expense ratio of 0.03%. That works out to $0.30 per $1,000 invested annually, and it’s one of the cheapest you’ll find from any ETF on the stock market, regardless of type. Even another S&P 500 ETF, the SPDR S&P 500 Trust ETF, is more than three times more expensive at 0.0945%.

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To give you some perspective, here’s how much you’d pay in fees over 20 years by investing different amounts and averaging 10% annual returns in both ETFs.

Calculations by author. Fees rounded down to the nearest 10.

The seemingly slightest difference on paper could save you thousands in fees over time. Don’t overlook it.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Stefon Walters has positions in Apple, Microsoft, and Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Berkshire Hathaway, Meta Platforms, Microsoft, Nvidia, and Vanguard S&P 500 ETF. The Motley Fool recommends Broadcom and 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.

History Says This Vanguard ETF Could Be Your Ticket to a Million-Dollar Portfolio was originally published by The Motley Fool