If you want to make any money in the market, you have to take risks. If you want no risk, you would be using something like a Guaranteed Investment Certificate, where your principal is protected, but returns rarely exceed the risk-free rate. Over long periods, the real danger is falling behind inflation, where a dollar today buys meaningfully less in the future even after nominal growth.
There is no stock market return without risk, but risk can be taken intelligently. Staying broadly diversified, keeping fees low, and owning profitable blue-chip companies has historically been a reliable approach. Using that framework, here is a simple strategy built around a single BMO exchange-traded fund (ETF) that has historically turned a $20,000 investment into roughly $75,000, net of taxes.
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What we are investing in
The benchmark here is the S&P 500. It is a U.S. index of 500 large-cap companies selected through a defined methodology and overseen by a committee. To qualify, companies must meet minimum size and liquidity thresholds and demonstrate a history of positive earnings.
The result is a broad slice of the U.S. economy. Technology, healthcare, and financials dominate, but the index also includes exposure to consumer staples, consumer discretionary, utilities, energy, real estate, and the rest of the 11 sectors. You are not betting on one industry or one company. You are buying the productive core of corporate America.
Index ETFs make this approach accessible. These funds simply buy all the companies in the index. When you purchase one unit, you receive fractional exposure to every stock inside it. Because there is no stock picking involved, costs stay low.
The ETF to pick
My preferred option here is BMO S&P 500 Index ETF (TSX: ZSP). It provides full S&P 500 exposure for a very low 0.09% expense ratio.
Based on historical data, from January 2016 to December 2025, a $20,000 investment in ZSP with all dividends reinvested compounded at an annualized rate of 14.37%. That would have grown to approximately $76,567 by the end of the period.
That outcome assumes three things. First, you never panic sold during market drawdowns. Second, every dividend was reinvested as it was paid. Third, there was no tax. That last point is critical. To make this strategy work as intended, ZSP should be held inside a registered account, such as a Tax-Free Savings Account.
