Meet the Warren Buffett ETF That Turned $10,000 Into Over $233,000
2024-10-13 11:47:00
Warren Buffett sometimes says he’s a “business-picker” and not a stock-picker. He’s right, of course. However, the legendary investor doesn’t always pick individual businesses. Sometimes, Buffett picks a large basket of businesses.
I’m referring to the exchange-traded funds (ETFs) in Berkshire Hathaway‘s portfolio. Buffett’s ETFs have been big winners over the years. One of them even turned $10,000 into over $233,000.
Finally, the SPDR S&P 500 ETF’s low costs affect its ability to achieve great returns. The ETF’s annual expense ratio is 0.0945%. While that’s higher than the expense ratio of 0.03% for the Vanguard S&P 500 ETF, it’s still low relative to many funds.
Could this Buffett ETF turn $10,000 into over $233,000 again?
State Street includes a disclaimer in the fine print of its information about the SPDR S&P 500 ETF Trust: “Past performance is not a reliable indicator of future performance.” This statement is correct. But could this high-flying Buffett ETF turn $10,000 into over $233,000 again? I think it’s possible.
The secrets to the ETF’s past success — time, diversification, rebalancing, dividends, and low costs — should enable it to perform well in the future. However, if I had to choose between the two ETFs in Berkshire’s portfolio, I’d go with the Vanguard S&P 500 ETF instead of the SPDR S&P 500 ETF Trust. The lower cost of the Vanguard ETF should allow it to make a little more money than the SPDR ETF over the long run.
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Keith Speights has positions in Berkshire Hathaway and Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Berkshire Hathaway and Vanguard S&P 500 ETF. The Motley Fool has a disclosure policy.
Meet the Warren Buffett ETF That Turned $10,000 Into Over $233,000 was originally published by The Motley Fool
