The current bull market has been going on for just over two years now, and as prices continue to rise, investing now can be a fantastic way to create long-term wealth.

Exchange traded funds (ETFs) can be a more cost-effective way to participate in the stock market. Buying just one share of an ETF gives you exposure to hundreds of stocks at once without having to go to the trouble of researching dozens of different companies like you would if you invested in individual stocks.

However, where you buy is important because not all ETFs are strong investments. If you're looking for a higher-yielding fund that could potentially help you make a lot of money over time, there's a Vanguard ETF you might want to consider.

A tech ETF that will add value to your portfolio

The Vanguard Information Technology ETF (VGT 3.13%) is a technology-focused ETF that contains 316 stocks from various areas of the technology industry – from semiconductors to systems software to hardware and storage and more.

Image source: Getty Images.

The three largest holdings in this ETF include: Apple, MicrosoftAnd Nvidiarespectively. Combined, these three stocks alone account for just over 44% of the entire fund.

Investing in an ETF can be a smart way to invest in high-performing stocks while gaining access to hundreds of potential future stars. Not only will you get exposure to big stocks like Nvidia, but you'll also reap the rewards when any of the smaller stocks in the fund become super performers.

However, an important factor to consider is that sector-specific ETFs – particularly technology ETFs – carry more risk than many other types of funds. Although this ETF contains over 300 stocks because they are all from the same industry, it does not offer as much diversification as a broad-based fund that contains stocks from all sectors of the stock market.

That's not necessarily a bad thing, but if you decide to invest in this ETF, you'll need to double-check that the rest of your portfolio is well diversified with stocks or funds from other industries. In general, the more diversity you can add to your portfolio, the lower your risk.

How much could you earn from this ETF?

Tech ETFs can be far more volatile than broad-based funds, especially in the short term. This industry tends to experience more ups and downs, so one can only guess how this fund will perform in the coming months or even the next year or two.

However, this ETF has delivered an incredible average annual return of 20.37% over the past 10 years. Its performance since its inception in 2004 is a slightly less impressive 13.45% per year, but still above the stock market's historical average of 10% per year.

^SPX data from YCharts

Again, it is unclear whether this investment's returns will be closer to the average of 20% per year or 13% per year in the future, and there is even the possibility that it could underperform overall and produce below-average returns. But that's a risk you have to take when investing in a potentially high-yield ETF.

Let's assume you earn an average annual return of 18% going forward. If you invested $1,000 now and made no additional contributions, that initial investment could grow to about $143,000 over 30 years with no hassle.

However, to potentially earn exponentially more, you could continue to invest a small amount each month. If you invest $1,000 every now and then and only invest $50 per month in the future, depending on the return you get, you can accumulate approximately the following in total:

Data source: Author's calculations via investor.gov.

If this ETF continues to produce returns in line with its 10-year average, you could potentially make close to $1 million by investing just $50 per month. But even if future returns are lower, it is still possible to make a lot of money with even small monthly contributions.

Investing in ETFs can be a smart way to build wealth with less effort than buying individual stocks, but choosing the right investment is crucial. If you're willing to take on a little more risk for potentially life-changing returns over time, the Vanguard Information Technology ETF could be a smart addition to your portfolio.