The appeal of investing in a true set-it-and-forget-it exchange-traded fund (ETF) is often underrated. These are a special class of investments that offer investors a balanced, diversified approach for long-term wealth building that can last decades.
Set-it-and-forget-it ETFs appeal to investors who want long‑term growth without constant decision‑making.
That’s a huge upgrade over having to constantly monitor and rebalance a portfolio of individual stocks. For Canadian investors seeking a great set-it-and-forget-it ETF, there’s one option that can provide all of that and more.
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Meet the set-it-and-forget-it ETF that fits this strategy perfectly
That ETF is Vanguard S&P 500 Index (TSX:VFV). Vanguard 500 is one of the most widely used set-it-and-forget-it ETF choices among Canadian investors. It’s one ticker that gives exposure to 500 of the largest and most influential companies in the U.S. market. That includes finance, consumer goods, healthcare, technology, and others.
The appeal here for investors is simple. Buy the market instead of trying to pick the individual winners from the market. In short, it takes a lot of the guesswork and heavy lifting out of investing, in exchange for a low management fee.
The low-maintenance appeal of this set-it-and-forget-it ETF is underrated. It’s an investment that rewards patience over tinkering, making it ideal for longer-term investors.
Vanguard 500 benefits from the growth of the companies that dominate the global economy, which are part of the S&P 500. That resilience also means that it recovers more quickly from downturns. For investors seeking a more set-it-and-forget-it approach, Vanguard 500 checks all the boxes for diversification, simplicity, and proven returns.
How Vanguard 500 turns long-term investors into multi-millionaires
The S&P 500 has delivered strong long-term returns for decades. Vanguard 500 mirrors that performance. Investors who consistently contribute and allow compounding to work often see dramatic growth in their portfolios. The simplicity of a set-it-and-forget-it ETF strategy is exactly what makes it so effective over the longer term.
Long‑term historical returns for the S&P 500 have been strong enough that steady contributions can snowball into seven-figure territory over a working lifetime.
By way of example, as of the time of writing, Vanguard 500 has risen 10% over the trailing 12-month period, and over the past five years, that number improves to an impressive 85% return. Since its inception in 2012, this set-it-and-forget-it ETF is up a staggering 550%.
The key is time in the market, not timing the market. Vanguard 500 makes that process effortless by removing the need for stock picking, sector rotation, or market predictions. Investors simply buy and hold. Compounding does the heavy lifting.
What a long-term Vanguard 500‑based portfolio could look like
A long‑term portfolio built around the Vanguard 500 is simple, and that’s by design. As a core holding, Vanguard 500 provides the bulk of growth. It can also complement other, smaller allocations in other funds. This helps to reduce decision fatigue, keeping the focus on long‑term growth rather than short‑term noise.
Longer term, Vanguard 500 benefits from the strength of the U.S. market, the power of reinvested returns, and the stability that comes from owning hundreds of leading companies.
For investors who want a set-it-and-forget-it ETF strategy that requires almost no effort yet offers the potential for millionaire-level wealth, Vanguard 500 stands out as one of the most compelling options.
