Warren Buffett recommends Vanguard’s S&P 500 ETF with a 0.03% expense ratio for most investors seeking simplicity and long-term growth.
Warren Buffett has long advocated for investing in the S&P 500 as a straightforward strategy for most individuals. In his 2013 shareholder letter, he advised allocating 90% of cash to a low-cost S&P 500 index fund, specifically naming Vanguard’s offering.
The Vanguard S&P 500 ETF (VOO) tracks the index with an annual expense ratio of just 0.03%, making it one of the cheapest options available. Buffett’s approach emphasizes buy-and-hold investing over market timing or stock picking, favoring broad exposure to large-cap U.S. companies.
Buffett’s endorsement aligns with his broader investment philosophy of simplicity and long-term conviction. He has previously stated that most investors would benefit from avoiding complex strategies and instead relying on low-cost index funds.