How many ETFs does Warren Buffett own?
Warren Buffett owns 2 ETFs—this one is better for everyday investors, experts say.
Buffett's favorite ETF
There are only two ETFs in Berkshire Hathaway's (NYSE: BRK. A) (NYSE: BRK.B) portfolio: the SPDR S&P 500 ETF Trust (NYSEMKT: SPY) and the Vanguard 500 Index Fund ETF (NYSEMKT: VOO).
Experts agree that for most personal investors, a portfolio comprising 5 to 10 ETFs is perfect in terms of diversification.
A common asset allocation rule of thumb is the rule of 110. It is a simple way to figure out what percentage of your portfolio should be kept in stocks. To determine this number, you simply take 110 minus your age. So, if you are 40, then the rule states that 70% of your portfolio should be kept in stocks.
Warren Buffett owns 2 ETFs—this one is better for everyday investors, experts say. Warren Buffett tours the floor ahead of the Berkshire Hathaway Annual Shareholder's Meeting in Omaha, NE. When you've been as successful an investor as Warren Buffett, you make headlines any time you buy an asset.
Buffett's favorite ETF is the Vanguard 500 Index Fund ETF. Another ETF -- BlackRock's iShares Core S&P 500 ETF -- owns the same stocks and has the same expense ratio. Investing regularly over a long period in either of these ETFs has the potential to make you a millionaire.
Warren Buffett has long recommended the S&P 500 index fund and ETF, and through his holding company Berkshire Hathaway, he also owns two of these types of investments: the Vanguard S&P 500 ETF (NYSEMKT: VOO) and the SPDR S&P 500 ETF Trust (NYSEMKT: SPY).
Warren Buffett's Investment Strategy
He focuses more on a company's characteristics and less on its stock price, waiting to buy only when the cost seems reasonable. The content below demonstrates this approach, and the variety of ways that you can apply these investing principles.
“The first rule of investment is don't lose. The second rule of investment is don't forget the first rule.” Buffett famously said the above in a television interview.
However, it's important to balance diversification and complexity. Holding too many ETFs can limit gains and make it harder to manage, while holding too few can increase risk. Aim for around 10 to 20 diversified ETFs that align with your goals and risk tolerance.
What is the most aggressive ETF?
The largest Aggressive ETF is the iShares Core Aggressive Allocation ETF AOA with $1.87B in assets. In the last trailing year, the best-performing Aggressive ETF was AOA at 20.94%. The most recent ETF launched in the Aggressive space was the iShares ESG Aware Aggressive Allocation ETF EAOA on 06/12/20.
You expose your portfolio to much higher risk with sector ETFs, so you should use them sparingly, but investing 5% to 10% of your total portfolio assets may be appropriate. If you want to be highly conservative, don't use these at all. Consider the two funds below.
“By the time you hit 33 years old, you should have $100,000 saved somewhere,” he said, urging viewers that they can accomplish this goal. “Save 20 percent of your paycheck and let the market grow at 5% to 7% per year,” O'Leary said in the video.
This principle recommends investing the result of subtracting your age from 100 in equities, with the remaining portion allocated to debt instruments. For example, a 35-year-old would allocate 65 per cent to equities and 35 per cent to debt based on this rule.
The Rule of 120 (previously known as the Rule of 100) says that subtracting your age from 120 will give you an idea of the weight percentage for equities in your portfolio.
| Ticker | Fund name | 5-year return |
|---|---|---|
| SMH | VanEck Semiconductor ETF | 34.51% |
| SOXX | iShares Semiconductor ETF | 30.32% |
| XLK | Technology Select Sector SPDR Fund | 24.51% |
| IYW | iShares U.S. Technology ETF | 23.69% |
| Symbol | ETF Name | % Weight in ETF |
|---|---|---|
| DUSA | Davis Select U.S. Equity ETF | 9.58% |
| VFH | Vanguard Financials ETF | 8.30% |
| FNCL | Fidelity MSCI Financials Index ETF | 8.14% |
| IXG | iShares Global Financials ETF | 7.55% |
| Company name & symbol | Percent change in share count over quarter | Value of investment at end of quarter |
|---|---|---|
| Sirius XM (SIRI) | 316% | $220,129,000 |
| Chevron Corp. (CVX) | 14% | $18,808,080,000 |
| Occidental Petroleum (OXY) | 9% | $14,552,270,000 |
Warren Buffett has been very vocal about his disdain for gold as an investment. He sees little to no value in it. What Buffett refers to as a lack of value results from a lack of usefulness. He once stated about gold, "It doesn't do anything but sit there and look at you."
The Warren Buffett ETF Portfolio (90/10) is an investment strategy inspired by Warren Buffett's philosophy. It involves allocating 90% of funds to low-cost, passively managed S&P 500 index ETFs and 10% to government bonds, aiming for long-term growth with reduced risk and lower fees.
How many stocks does Warren Buffett invest in?
Among the 45 stocks Berkshire Hathaway holds, the top 10 represent about 87% of the company's holdings. Here's a rundown of Buffett's 10 largest holdings based on Berkshire Hathaway's most recent 13F filing, filed Feb. 14, 2024.
SPDR S&P 500 ETF Trust (SPY)
With hundreds of billions in the fund, it's among the most popular ETFs. The fund is sponsored by State Street Global Advisors — another heavyweight in the industry — and it tracks the S&P 500.
| Ticker Ticker | ETF ETF | Weighting Weighting |
|---|---|---|
| TSLT | T-REX 2X Long Tesla Daily Target ETF | 58.45% |
| FNGS | MicroSectors FANG+ ETN | 12.17% |
| XLY | Consumer Discretionary Select Sector SPDR Fund | 11.64% |
| VCR | Vanguard Consumer Discretionary ETF | 10.66% |
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.
