For most investors, the idea of turning modest monthly contributions into a half-million-dollar portfolio might sound like a distant dream. But with patience, consistency, and the power of compounding, it is far more achievable than many think.
In fact, by investing just $1,000 per month into a high quality ASX ETF, it could be possible to reach this milestone in a little over one and a half decades.
Why compounding and consistency matter
Compounding is the quiet engine behind long-term wealth creation. When you earn returns on your investments — and then reinvest those returns — your money begins to grow on itself. Over time, the results can be staggering.
But compounding only works its magic if you stay invested consistently. Missing just a few months of contributions or trying to time the market can slow your progress. The key is sticking to the plan, even when markets are bumpy.
Why this ASX ETF could be a smart choice
The Betashares Nasdaq 100 ETF (ASX: NDQ) could be a great pick for a long term investment.
It gives investors exposure to 100 of the largest non-financial companies listed on the Nasdaq Stock Exchange. This includes some of the world's most dominant tech and consumer names.
While many people associate this ASX ETF with tech giants like Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Nvidia (NASDAQ: NVDA), the ETF also includes world-class businesses in other industries.
Think PepsiCo (NASDAQ: PEP), Costco Wholesale (NASDAQ: COST), Intuit (NASDAQ: INTU), Starbucks (NASDAQ: SBUX), Shopify (NASDAQ: SHOP), Tesla (NASDAQ: TSLA), and Booking Holdings (NASDAQ: BKNG).
These companies share something in common: scale, profitability, and competitive advantages that are difficult to replicate. That's what makes this Betashares Nasdaq 100 ETF so appealing. It is not just about growth, but quality growth.
Strong past performance
It is important to note that while we're basing this article on a 10% annual return, the Nasdaq-100 index has actually delivered far better than this.
It has achieved a staggering total return of 20% per annum over the past 10 years. That's an extraordinary track record — and while future returns may be lower, the long-term outlook for innovation and technology remains strong.
Getting to $500,000
A disciplined investor who commits $1,000 a month to Betashares Nasdaq 100 ETF, reinvests dividends, and stays the course for just under 17 years, would end up with a portfolio of $500,000 if it averaged a total return of 10% per annum.
And from there, that portfolio could continue to grow — or start paying out meaningful income if you choose to pivot to dividend-focused investments later on.
Foolish takeaway
The hardest part of investing isn't picking the right stock, it is staying consistent.
By choosing a high-quality, growth-focused ASX ETF like the Betashares Nasdaq 100 ETF and contributing regularly, you're giving yourself the best possible chance to build serious long-term wealth.
