If you're aiming to grow your portfolio's balance to over $1 million, investing in an exchange-traded fund (ETF) can be an effective strategy to balance risk with potential growth. ETFs offer diversification, which can help minimize risk while allowing your investment to rise with market and industry trends. This approach is particularly appealing to investors who may not be comfortable selecting individual stocks. By investing $34,000 today, you could potentially see your investment grow beyond $1 million over a 30-year period. One ETF that stands out for achieving this is the Vanguard Growth Index Fund ETF (VUG).

The Vanguard Growth Index ETF is a compelling investment option due to its focus on growth stocks. Growth stocks tend to lead to increased portfolio values over time, but identifying the right ones can be daunting, especially as market trends shift. ETFs alleviate this challenge by consistently rebalancing to align with their goals. The Vanguard Growth Index ETF focuses on large-cap growth stocks, providing investors with a promising chance for excellent returns. With 183 stocks in its portfolio, it includes leading companies across various industries, including Apple, Eli Lilly, and Visa, which are among its top holdings.

Admittedly, there is considerable technology exposure within this fund, as giants like Apple, Microsoft, and Nvidia make up over a third of the fund's total weight. However, this isn't uncommon for growth or tech-centric funds, as major tech companies naturally occupy top positions. Historically, the fund has delivered robust returns, with approximately 915% total returns over the past two decades, averaging a compounded annual growth rate of about 12.3%.

Looking at how the Vanguard Growth Index ETF could help build a $1 million portfolio, long-term returns can't be guaranteed, but the fund's growth focus suggests strong potential for market-beating results. Traditionally, the S&P 500 index has yielded returns around 10% per year. Assuming a continued annual return of 12%, a $34,000 investment could evolve as follows: at 10 years, it's worth roughly $105,599; at 15 years, $186,101; at 20 years, $327,974; at 25 years, $578,002; and hitting the $1,018,637 mark at 30 years, evidencing how crucial time and compounding are to investment growth. By staying invested and allowing compounding to bolster your investment, substantial gains can be realized over time, bearing in mind that returns will vary.

Aside from the numbers, the Vanguard Growth Fund represents a wise long-term, buy-and-forget investment strategy. If you're financially able, setting aside your money in this fund and letting it mature can significantly support your retirement planning. The common challenge in investing often lies in resisting the urge to chase short-term opportunities that seem promising yet may not deliver. A consistent, diversified investment like this one provides stability and safety. By not tampering with your investment over the decades, assuming you don't need immediate access to the money, this ETF can potentially offer you transformative returns as the years progress.