Question

If you invested $5,000 into an ETF, what do you think your return would be in 5 years?

Answer 1

Investing $5,000 into an ETF, the expected return after 5 years can be interpreted based on the few Funds making as standard for calculation purpose:
1.   iShares U.S. Technology ETF (BlackRock Fund):

Historical Returns of the fund include:

Total Return (%)   YTD   1m   3m   6m   1y   3y   5y   10y   Incept.
   -0.96   -8.02   -17.46   -10.08   -0.96   53.78   90.49   394.24   53.81
The 5 year return percentage of the fund is 90.49%
2.   Vanguard S&P 500 ETF (Vanguard Fund):
Total Return in 5 years = 170%

Taking the average of the returns of these tow ETFs and calculating the expected return on the investment of $5,000.

Average return on these tow ETFs = (90.49+170) / 2 = 130.4%

Now making use of the return percentage, and keeping in view the inflation rate (let’s say 16%), the expected return (130%-16% = 114%) can be given as:
$5,000 x 114/100 = $5,700+$5,000 = $10,700