What ETFs does Warren Buffett recommend?

What ETFs does Warren Buffett recommend?

Does Warren Buffet have ETFs

For the most part, Buffett's investment portfolio is comprised of individual stocks. However, there is one ETF he owns and often recommends to other investors: the S&P 500 ETF. Through his holding company Berkshire Hathaway, Buffett owns both the Vanguard S&P 500 ETF (VOO 0.17%) and SPDR S&P 500 ETF Trust (SPY 0.18%).

What does Warren Buffett say about ETFs

Buffett has long encouraged investors to opt for an S&P 500 ETF, and he famously put his money where his mouth was in 2008 when he bet that this type of investment would outperform a group of hedge funds. He won that bet by a landslide, with the S&P 500 fund earning total returns of more than 125% over 10 years.

What Vanguard ETF did Warren Buffett recommend

Buffett bet that over 10 years, an S&P 500 index fund would outperform five actively managed hedge funds. His investment, the Vanguard 500 Index Fund Admiral Shares (NASDAQMUTFUND:VFIAX), not only won, but it trounced the competition — earning returns of nearly 126% while the hedge funds averaged just 36%.

What ETF does Barefoot Investor recommend

The Barefoot Investor recommends 20% portfolio exposure to global bluechip shares to spread your investment risk out of Australia and diversify into some of the worlds biggest companies like Microsoft, Apple, amazon and Nestle.

Which is better VTI or VOO

VTI vs VOO: The Verdict

If you like the name-brand recognition of the S&P 500 and want to stick to large-caps, then VOO might be the better option. If you don't mind some mid and small-cap exposure, then VTI could be a good pick. Investors can potentially also use both as tax-loss harvesting pairs.

Why avoid ETFs

Market risk

The single biggest risk in ETFs is market risk. Like a mutual fund or a closed-end fund, ETFs are only an investment vehicle—a wrapper for their underlying investment. So if you buy an S&P 500 ETF and the S&P 500 goes down 50%, nothing about how cheap, tax efficient, or transparent an ETF is will help you.

What does Suze Orman say about ETFs

Orman believes the market is in for another dip, which is good news for investors. It's during dips that investors can make the most of their investment dollars by scooping up more stock. Like a mutual fund, an ETF helps diversify a portfolio and reduce risk.

What does Dave Ramsey think about ETFs

Ramsey suggested that if you do want to engage in passive investing, you're better off doing it with an index mutual fund than with an ETF that tracks a market or financial index. His reasoning: Mutual funds are meant to be invested in over the long term, while ETFs trade daily.

What is the most successful ETF

100 Highest 5 Year ETF Returns

Symbol Name 5-Year Return
XNTK SPDR NYSE Technology ETF 13.26%
IYK iShares U.S. Consumer Staples ETF 13.21%
VUG Vanguard Growth ETF 13.09%
XLG Invesco S&P 500® Top 50 ETF 12.98%

What is the best Vanguard ETF for the bear market

The Vanguard Health Care ETF (VHT, $246.53) is tops among all bear market ETFs period, and it's certainly one of the safest Vanguard funds to put to use in a bear market. It's an extremely cost-efficient way to diversify, giving you access to some 420 healthcare-sector stocks for a mere 10 basis points in annual fees.

Is QQQ better than VTI

QQQ offers aggressive growth potential, especially within the tech sector, but comes with higher volatility. VTI, on the other hand, provides broad exposure to the U.S. stock market, accommodating a more diversified investment approach.

Does Warren Buffett recommend VOO

But without knowing your background, Buffett would almost certainly advise investing in an S&P 500 index fund like VOO. He understands that it's a good long-term bet for most people.

What’s the best ETF to buy right now

7 Best ETFs to Buy Now

ETF YTD performance as of June 2
Ark Innovation ETF (ARKK) 33.2%
Global X MSCI Greece ETF (GREK) 28.8%
Pimco Enhanced Short Maturity Active ETF (MINT) 2.5%
iShares Gold Trust (IAU) 6.8%

What is the negative side of ETFs

Market risk

The single biggest risk in ETFs is market risk. Like a mutual fund or a closed-end fund, ETFs are only an investment vehicle—a wrapper for their underlying investment. So if you buy an S&P 500 ETF and the S&P 500 goes down 50%, nothing about how cheap, tax efficient, or transparent an ETF is will help you.

Should long term investors avoid ETFs

ETFs are less volatile than stocks, so they do not give very high returns in a short period and similarly do not fall rigorously like stocks. ETFs are only for those who want slow and steady returns in the long term. For anybody expecting good returns overnight, an ETF is not a good option for you to invest in.

Has anyone gotten rich from ETFs

It's a common belief that investors get rich by picking individual stocks and beating the market. While that can be true, stock picking isn't the only path for investors to build wealth. Funds — ETFs in particular — can also make you a millionaire, even though many of them never beat the market.

What ETF has the highest average return

100 Highest 5 Year ETF Returns

Symbol Name 5-Year Return
SSO ProShares Ultra S&P 500 13.85%
XHB SPDR S&P Homebuilders ETF 13.65%
MOAT VanEck Morningstar Wide Moat ETF 13.62%
VONG Vanguard Russell 1000 Growth ETF 13.57%

Which ETFs outperform the S&P 500

The VanEck Morningstar Wide Moat ETF has been a consistent outperformer over the past 10 yearsSPX.SPY.AAPL.MSFT.AMZN.NVDA.GOOG.GOOGL.

What is the safest Vanguard investment

Of the 3 main asset classes, cash is the safest, followed by bonds and then stocks. Safer investments also have lower average returns. By mixing investments, you can get a balance of both stability and growth potential.

Is QQQ too risky

In two articles published last August and October, we recommended speculators stay away from ProShares UltraPro Short QQQ (NASDAQ:SQQQ) because the extremely high levels of bearish sentiment made speculating in SQQQ far too risky.