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Warren Buffett repeatedly points investors to a low-cost S&P 500 ETF
The Vanguard S&P 500 ETF he names charges 0.03% annually and holds more than $950 billion in assets.
Warren Buffett has reiterated for years that many investors should favor a low-cost S&P 500 index fund rather than picking individual stocks or paying for high-fee managers, according to Yahoo Finance.
Yahoo Finance cites Buffett statements from multiple shareholder letters and annual meetings, including a 2013 will instruction to put 90% into a very low-cost S&P 500 index fund (suggesting Vanguard) and 10% into short-term government bonds.
It also highlights Buffett naming the Vanguard S&P 500 ETF, which tracks the S&P 500 and charges 0.03% per year, translating to about $3 in annual fees on a $10,000 investment.
The article says the ETF provides exposure to 500 of America’s largest companies across 11 sectors, and notes it has grown to more than $950 billion in assets.
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