The Vanguard Consumer Staples ETF (NYSEArca: VDC) includes a 8.9% tilt toward Coca-Cola (NYSE: KO), a long-time component of Berkshire Hathaway.
Both Buffett and Munger have shown a preference for established global consumer brands. The investment managers also acquired a large stake in H.J. Heinz, which was previously component of VDC, and Heinz bought Kraft Foods to create Kraft Heinz (NYSE: KHC), the VDC’s 13th largest holding. According to Morningstar data, 80.5% of VDC’s portfolio include firms with wide economic moats.
The Financial Select Sector SPDR (NYSEArca: XLF) includes a 8.0% tilt toward Wells Fargo & Co. (NYSE: WFC) and 1.8% in American Express (NYSE: AXP), two of Munger and Buffett’s preferred wide-moat financial companies. Additionally, XLF’s largest position is 9.4% in Berkshire Hathaway (NYSE: BRK.B).
Lastly, the Vanguard Dividend Appreciation ETF (NYSEArca: VIG) tracks U.S. stocks that have increased dividends on a regular basis for at least 10 consecutive years. The dividend growth strategy favors firms with shareholder friendly management and durable competitive advantages.
According to Morningstar data, 87% of the fund’s portfolio is comprised of companies with wide economic moats. The underlying index also seems to focus on firms with lower leverage and ample cash flow, factors that Munger and Buffett both look for.
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