ETF Return Calculator

1. Initial Investment: Enter the amount of money you would like to invest initially.
2. Additional Contributions: Specify how much you plan to contribute regularly (e.g., weekly, bi-weekly, monthly, semi-annually, annually) and the respective amounts.
3. Expected Rate of Return: Input your anticipated annual rate of return to see how it impacts your total portfolio growth.
4. Years to Grow: Select the number of years you plan to keep investing.
5. Expense Ratio: Account for the management fees associated with your ETF investment.

Once all the inputs are provided, the graph will populate, showing the projected growth of your investments, and a detailed table will provide a comprehensive breakdown of your expected financial outcome.

Your initial investment should depend on your personal financial situation and goals. Start with an amount you can afford without impacting your essential expenses. Even small amounts can grow over time when paired with consistent contributions and the power of compounding.

The expense ratio is a fee charged by the fund to cover management and operating costs. It’s expressed as a percentage of your investment. For example, if an ETF has a 0.5% expense ratio, you’ll pay $5 annually for every $1,000 invested. Lower expense ratios mean more of your money stays invested.

Predicting investment returns involves estimating potential growth based on historical data, market trends, and assumptions about future performance. While no prediction is ever guaranteed, here’s how you can approach it:

1. Understand the Historical Performance

Research the historical returns of the ETF or index you’re considering. For example:

• Broad market ETFs like those tracking the S&P 500 have historically delivered average annual returns of around 7-10% (after inflation).
• Sector-specific or thematic ETFs may have different performance averages, so ensure your expectations align with the type of investment.

2. Consider Market Conditions

Economic trends, interest rates, and geopolitical factors can influence returns. For instance:

• During periods of economic growth, returns might be higher.
• In recessions or downturns, they may be lower or even negative.

3. Use Conservative Estimates

It’s best to use a conservative range, such as 4-8% annual growth, when running projections. This helps set realistic expectations and prepares you for potential market fluctuations.

InvestingPro is a comprehensive tool that helps you dive deep into ETF details without spending hours on research. You can find historical returns, compare ETFs to benchmarks, and see key metrics like expense ratios and sector breakdowns, all in one place.

For example, below you can see the expense ratio, beta, 1Y and 5Y returns for the SPY ETF compared against other popular ETFs.