Could Investing $2,000 in the Schwab U.S. Dividend Equity ETF Make You a Millionaire?

• The Schwab U.S. Dividend Equity ETF has delivered an mean yearly instrumentality of 12.3% since its inception.

• The fund's strategy puts it successful a beardown presumption to proceed producing robust full returns.

• It has the imaginable to beryllium a precise enriching concern implicit the agelong term.

• 10 stocks we similar amended than Schwab U.S. Dividend Equity ETF ›

The Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) is 1 of the largest and astir fashionable exchange-traded funds (ETFs) focused connected dividend stocks. The money presently has implicit $75 cardinal successful assets under management, making it the second-largest dividend-focused ETF.

The money has an fantabulous past of delivering beardown returns for investors. Here's a look astatine whether investing $2,000 into this top ETF contiguous could marque you a aboriginal millionaire.

The Schwab U.S. Dividend Equity ETF has been enriching investors since its inception successful precocious 2011. It has delivered an mean yearly full instrumentality of 12.3% since that time. At that rate, it would person grown a $10,000 concern into astir $30,500. While that's a large return, it's a agelong mode from $1 million.

Amassing a $1 cardinal luck takes time. For example, if you invested $2,000 into a money that generated a 12.3% mean yearly return, it would turn into implicit $1 cardinal successful astir 54 years. So, unless you are precise young, investing lone $2,000 into this ETF wouldn't beryllium capable to marque you a millionaire earlier retirement.

However, you could velocity things up a spot by making further contributions. For example, investing different $1,000 into the money each twelvemonth would trim your clip to becoming a millionaire to 42 years. Bump that complaint up to $2,000 a year, and you could go a millionaire successful 36 years.

That each assumes the money continues to present returns matching its humanities rate. While that's nary guarantee, the fund's concern strategy puts it successful an fantabulous presumption to present beardown returns going forward.

The Schwab U.S. Dividend Equity ETF has a precise straightforward concern strategy. It aims to passively way the Dow Jones U.S. Dividend 100 Index, which measures the show of high-yielding dividend stocks with a accordant record of dividend payments. It screens companies based connected respective dividend prime characteristics, including yield, five-year dividend maturation rate, and beardown fiscal metrics. In essence, it aims to way the 100 champion higher-yielding dividend maturation stocks.

This absorption connected dividend maturation is worthy noting. Ned Davis Research and Hartford Funds person been tracking dividend stocks by argumentation implicit the years. They've recovered that dividend growers present superior total returns implicit the agelong term: