Thinking of Buying Warren Buffett's Favorite Index Fund? Buy This ETF Instead
As an investor, one of the best and easiest decisions you can make is to buy an index fund.
Owning an index fund that tracks the S 500 like the SPDR S 500 ETF Trust (NYSEMKT: SPY) does much of the challenging and tedious work of investing for you. It automatically diversifies your portfolio over 500 of the top U.S. large-cap stocks and will adjust it over time, dumping underperforming members and adding ones that have earned their membership in the exclusive club.
S 500 ETFs also have few added costs, as the SPDR ETF has an expense ratio of just 0.09%. The Vanguard 500 Fund (NYSEMKT: VOO), which also tracks the S 500, has an even lower expense ratio at just 0.03%.
Source Fool.com
