Want to Become a Stock Market Millionaire? History Says This Investment Can Get You There.
2026-08-09 17:30
•Jennifer Saibil •The Motley Fool
• • Axe Cap view
The Millionaire Myth: US ETFs vs. South African Reality
Consistent investing in low-cost US ETFs has made millionaires but may not be a perfect fit for South African investors.
The idea of becoming a millionaire by investing $150 a month into a US S&P 500 ETF like Vanguard's VOO is compelling. The fund’s low fees and steady growth since 1990 have rewarded disciplined investors. But here’s the rub for South Africans: currency risk and local market alternatives. The rand’s swings can cut deeply into offshore returns, and the JSE offers solid dividend-paying names like Naspers and Standard Bank that can provide income and local hedge. The VOO story is strong for those willing to hold forex risk and invest for the long haul, but for many local investors, a balanced approach including JSE counters and offshore ETFs is wiser. If the rand weakens significantly, offshore investments could do better; if it strengthens, local stocks might shine. We’re watching USD/ZAR closely and recommending a mix rather than putting all eggs in the US basket. this is just our opinion and not financial advice
Buy offshore ETFs like VOO selectively while holding quality JSE names such as Naspers and Standard Bank to manage currency and local growth exposure.
- VOO
- Naspers
- Standard Bank
- USD/ZAR
- Rand strengthening reducing offshore gains
- US market correction impacting ETFs like VOO
6/10
The article recommends investing in S&P 500 ETFs as a simple, low-risk path to building wealth. By consistently investing $150 monthly since 1990, an investor would have become a millionaire today. The Vanguard S&P 500 ETF is highlighted as the world's largest ETF with $1.7 trillion in assets and a minimal 0.03% expense ratio.
Our take is based on reporting first published by The Motley Fool.
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