What is Warren Buffett's favorite ETF?
Buffett's favorite ETF
The two investments held in Berkshire Hathaway's portfolio that Buffett recommends more than anything else are two S&P 500 index funds. The SPDR S&P 500 ETF Trust (NYSEMKT: SPY) and the Vanguard S&P 500 ETF (NYSEMKT: VOO).
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| Symbol | Name | 5-Year Return |
|---|---|---|
| XNTK | SPDR NYSE Technology ETF | 22.09% |
| XHB | SPDR S&P Homebuilders ETF | 22.05% |
| SPUU | Direxion Daily S&P 500 Bull 2x Shares | 21.90% |
| QQQ | Invesco QQQ Trust Series I | 21.45% |
The current volatility for Berkshire Hathaway Inc. (BRK-B) is 3.18%, while Vanguard S&P 500 ETF (VOO) has a volatility of 3.94%. This indicates that BRK-B experiences smaller price fluctuations and is considered to be less risky than VOO based on this measure.
Of course, he'd argue that he's actually a business picker instead of a stock picker. The businesses he picks, though, tend to translate to good stocks. The legendary investor doesn't just pick individual stocks -- he also likes some exchange-traded funds (ETFs). Buffett really likes one ETF, in particular.
Key Points. Warren Buffett made his fortune by investing in individual companies with great long-term advantages. But his top recommendation for anyone is to buy a simple index fund. Buffett's recommendation underscores the importance of diversification.
| Symbol | ETF Name | 10y Chg 2-22-24 |
|---|---|---|
| SMH | VanEck Semiconductor ETF | 992% |
| SOXX | iShares Semiconductor ETF | 850% |
| PSI | Invesco Semiconductors ETF | 770% |
| XSD | SPDR S&P Semiconductor ETF | 626% |
The largest Vanguard ETF is the Vanguard 500 Index Fund VOO with $404.40B in assets. In the last trailing year, the best-performing Vanguard ETF was MGK at 47.09%. The most recent ETF launched in the Vanguard space was the Vanguard Intermediate-Term Tax-Exempt Bond ETF VTEI on 01/30/24.
- Deal with debt.
- Invest in Low-Cost ETFs.
- Invest in stocks with fractional shares.
- Build a portfolio with a robo-advisor.
- Contribute to a 401(k)
- Contribute to a Roth IRA.
- Invest in your future self.
What is the number one traded ETF?
| Symbol | Name | Avg Daily Share Volume (3mo) |
|---|---|---|
| SQQQ | ProShares UltraPro Short QQQ | 119,589,141 |
| SOXS | Direxion Daily Semiconductor Bear 3x Shares | 97,642,328 |
| SPY | SPDR S&P 500 ETF Trust | 76,845,578 |
| TQQQ | ProShares UltraPro QQQ | 75,472,586 |
| ETF | Assets | Expense ratio |
|---|---|---|
| Vanguard S&P 500 ETF (ticker: VOO) | $389 billion | 0.03% |
| Schwab U.S. Small-Cap ETF (SCHA) | $16 billion | 0.04% |
| Invesco QQQ Trust (QQQ) | $249 billion | 0.20% |
| Vanguard High Dividend Yield Index ETF (VYM) | $51 billion | 0.06% |
- 9 Safest Index Funds and ETFs to buy in 2024. ...
- Vanguard S&P 500 ETF (VOO 2.1%) ...
- Vanguard High Dividend Yield ETF (VYM 0.68%) ...
- Vanguard Real Estate ETF (VNQ 0.19%) ...
- iShares Core S&P Total U.S. Stock Market ETF (ITOT 1.97%) ...
- Consumer Staples Select Sector SPDR Fund (XLP 0.31%) ...
- iShares 0-3 Month Treasury Bond ETF (SGOV 0.04%)
- Vanguard S&P 500 ETF VOO.
- SPDR S&P 500 ETF Trust SPY.
| Company | Ticker | Shares held |
|---|---|---|
| Vanguard S&P 500 ETF | VOO | 43,000 |
| SPDR S&P 500 Trust ETF | SPY | 39,400 |
| Jefferies | JEF | 433,558 |
| Liberty Latin Americ Class C | LILAK | 1,284,020 |
Key Points. Warren Buffett is highly regarded for his ability to consistently beat the benchmark S&P 500. Berkshire Hathaway's investing profile has dramatically changed since the turn of the century, however. As a result, growth investors will likely be better served owning this low-cost indexed Vanguard ETF.
Constantly Trading
One of the biggest reasons Ramsey cautions investors about ETFs is that they are so easy to move in and out of. Unlike traditional mutual funds, which can only be bought or sold once per day, you can buy or sell an ETF on the open market just like an individual stock at any time the market is open.
Warren Buffet's 2013 letter explains the 90/10 rule—put 90% of assets in S&P 500 index funds and the other 10% in short-term government bonds.
| Warren Buffett Portfolio | ||
|---|---|---|
| All time Stats (Since Jan 1871) | Return | +8.71% |
| Std Dev | 14.85% | |
| Max Drawdown | -79.29% | |
| Last Update: 31 January 2024 |
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What does Warren Buffett invest in 2023?
However, there's no doubt whatsoever that Apple ranks as Buffett's biggest moneymaker in 2023. Nearly half of Berkshire's equity investments are in Apple stock (48.5%, to be precise). Shares of the tech giant have skyrocketed more than 50% this year.
- Buy Companies at Bargain Prices. ...
- Be Patient. ...
- Go Against Conventional Wisdom. ...
- Stick with What You Know. ...
- Be Self-Confident. ...
- Buy Companies with Competitive Advantages. ...
- Believe in America. ...
- Which of these lessons do you apply to your own investing?
These are VanEck Vectors Semiconductor ETF SMH, Invesco NASDAQ 100 ETF QQQM, Communication Services Select Sector SPDR Fund XLC, Vanguard Mega Cap Growth ETF MGK, and Vanguard Consumer Discretionary ETF VCR.
The Fidelity Blue-Chip Growth ETF FBCG has jumped 58.7% in 2023 to become the best-performing U.S. fund, excluding ETNs and leveraged products, according to FactSet data. The WisdomTree U.S. Quality Growth Fund QGRW is up 56.2% this year, while the Invesco QQQ Trust Series I QQQ has risen 55.6% in 2023.
The top-performing ETF of 2023 is iShares Expanded Tech Software Sector ETF (IGV), with a year-to-date (YTD) return of 55.22%. Triple-digit YTD gains in major technology names like Meta and NVIDIA helped generate the outperforming ETF returns.
