Investors want to emulate successful market navigators like Warren Buffett, but combing through thousands of stocks for that diamond in the rough is a daunting task.
Buffett is the consummate stock picker but ETF investors can still roughly approximate his Berkshire Hathaway portfolio with broad-based and sector funds.
In fact, Buffett has repeatedly said most investors would be best served by using low-fee index funds. Also, in 2008 he made a 10-year bet that that an S&P 500 index fund would beat a group of hedge funds. He’s ahead on that wager for now.
While Buffett has not disclosed any ETFs in his portfolio, investors can still gain exposure to his positions through ETF picks, writes Tim Parker for Investopedia.
For instance, Buffett’s portfolio includes at least five of the Dow Jones Industrial Average stocks, along with other mega-cap companies like Wells Fargo (NYSE: WFC) and ConocoPhillips (NYSE: COP). ETF investors who are interested in blue chip stocks can take a look at the SPDR Dow Jones Industrial Average ETF (NYSEArca: DIA), which comes with a 0.18% expense ratio and a 2.4% yield.