Vanguard Growth ETF

VUG

Market cap $194B

The market just passed another milestone that has a lot of people uneasy. The Warren Buffett indicator, which adds up the total market capitalization (market cap) of all publicly traded U.S. companies and divides it by the country's gross domestic product (GDP), has pushed well past 200%, a level Buffett has in the past called "playing with fire.

Megacap technology stocks have been leading the market higher, and the odds of that happening again next year are high. As such, the Vanguard Growth ETF (VUG -3.28%) and the Invesco QQQ Trust (QQQ -3.46%) are both well positioned to once again outperform the S&P 500 in 2026.

Growing your portfolio to $1 million or more doesn't have to be complicated or involve taking on a lot of risk. If you're able to save up a large lump sum and invest it in the stock market, a simple buy-and-hold strategy can be sufficient to generate massive returns in the years ahead.

Everyone invests for the same reason: to make money. And although nothing is ever guaranteed in the stock market, making money there is far from difficult.

When the market is sitting near all-time highs, it's natural to wonder if the smart move is to sit on the sidelines and wait for a pullback. The problem is that history shows waiting usually works against you.

Another standoff in Washington has led to a government shutdown, but investors have seen this movie before and know the market rarely cares for long. In fact, this time around, the market seems to have barely taken notice.

Now is not the time to sit back and wait for the next big stock market drop. This is the time to put your money to work.

The S&P 500 (^GSPC 0.34%) has returned 13.2% so far this year, outpacing its average gain of 10.5% per year since it was established in 1957.

Growth stocks are powering the market again this year, and it is the same handful of megacap technology companies leading the charge. Artificial intelligence (AI) is driving this rally, which, despite all the hype, is still just getting started.

The market is being carried on the back of growth stocks, and artificial intelligence (AI) has become the story everyone wants a piece of these days. While it's tempting to buy individual AI stocks like Nvidia, perhaps the better strategy for many investors is to invest in the trend through a growth-oriented exchange-traded fund (ETF), especially if you're just starting out.