Billionaire Warren Buffett is famous for his skill at picking individual stocks. His returns have been phenomenal, trouncing the wider market averages over the past several decades.

But choosing individual stocks like his favorites (such as Apple (NASDAQ: AAPL) and Coca-Cola (NYSE: KO)) is not what Buffett recommends for most investors. Rather, the Oracle of Omaha believes you'd be much better off putting your money in a low-cost fund that seeks to replicate the returns from an index like the S 500. That way, your gains will beat the vast majority of professionals on Wall Street, with very little effort on your part.

With that goal in mind, let's look at an exchange-traded fund (ETF) that meets Buffett's criteria. Here's why the Vanguard Dividend Appreciation ETF (NYSEMKT: VIG) deserves a spot in your long-term investment portfolio.

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Source Fool.com