In the third quarter, a few billionaires bought shares of the Invesco QQQ Trust, an index fund that tracks the growth-focused Nasdaq-100. The Invesco QQQ Trust is heavily weighted toward the "Magnificent Seven" stocks, a group well positioned to benefit from emerging technologies.
Buffett's biggest moneymaking ETF
Berkshire owns 39,400 shares of the SPDR S&P 500 ETF Trust (SPY -1.53%), which is currently valued at nearly $22.6 billion. It also owns 43,000 shares of the Vanguard S&P 500 ETF (VOO -1.52%), valued at nearly $22.7 billion. Both ETFs attempt to track the performance of the S&P 500.
Invesco S&P 500 Momentum ETF (SPMO)
SPMO holds $4 billion in total assets and has consistently outperformed the S&P 500. Over the past five years, SPMO has an annualized total return of 19.1%, compared with the S&P 500's 12.3%. Low commission rates start at $0 for U.S. listed stocks & ETFs*.
The 90/10 rule in investing is a comment made by Warren Buffett regarding asset allocation. The rule stipulates investing 90% of one's investment capital toward low-cost stock-based index funds and the remainder 10% to short-term government bonds.
Many novice investors lose money chasing big returns. And that's why Buffett's first rule of investing is “don't lose money”. The thing is, if an investors makes a poor investment decision and the value of that asset — stock — goes down 50%, the investment has to go 100% up to get back to where it started.
SPY is more expensive with a Total Expense Ratio (TER) of 0.0945%, versus 0.03% for VOO. SPY is up 28.31% year-to-date (YTD) with +$7.13B in YTD flows. VOO performs better with 28.36% YTD performance, and +$103.99B in YTD flows.
NYSEMKT: VOOG
The two Vanguard index funds that delivered the best returns in 2024 are listed below: Vanguard S&P 500 Growth ETF (VOOG -0.36%) advanced 35% last year. Vanguard Russell 1000 Growth ETF (VONG -0.39%) advanced 32% last year.
While your investing choices are personal, there's one option that comes highly recommended by billionaire investor Warren Buffett: The S&P 500 index fund. Here's why it's such a fantastic investment, and how you could earn hundreds of thousands of dollars while barely lifting a finger. Image source: The Motley Fool.
Average Return
In the past year, QQQ returned a total of 25.74%, which is slightly higher than VOO's 24.33% return. Over the past 10 years, QQQ has had annualized average returns of 18.26% , compared to 13.04% for VOO. These numbers are adjusted for stock splits and include dividends.
But most investors ignore of his most prudent pieces of advice. "In my view, for most people, the best thing to do is to own the S&P 500 index fund," Buffett said at Berkshire's annual meeting 2021. He has often repeated that advice, and has specifically suggested the Vanguard S&P 500 ETF (NYSEMKT: VOO).
The $3.9 billion Invesco S&P 500 Momentum ETF was the best-performing ETF in 2024, with a 45.81% return. The passively managed Invesco ETF beat the 21.26% gain on the average fund in Morningstar's large blend category for the year.
Index funds have minimal fees and are easy to own. However, it's hard to get really rich off index funds alone. In addition, if you want to achieve financial independence well before the traditional retirement age of 65, investing only in index funds is probably not going to cut it.
VOO has a consensus rating of Moderate Buy which is based on 400 buy ratings, 99 hold ratings and 5 sell ratings. What is VOO's price target? The average price target for VOO is $621.22. This is based on 504 Wall Streets Analysts 12-month price targets, issued in the past 3 months.
The Vanguard Wellesley Income Admiral, the Vanguard Tax-Managed Balanced Fund Admiral, and the Vanguard High-Yield Tax-Exempt Fund are all popular vanguard funds.
Berkshire Hathaway owns two exchange-traded funds (ETF), The SPDR S&P 500 ETF Trust (NYSEMKT: SPY) and the Vanguard S&P 500 ETF (NYSEMKT: VOO). Both of these ETFs track the S&P 500.
For example, you might buy SPY if you want to trade actively, or even venture into day trading, because of its high volume. You might consider buying VOO to hold over the long term because of its lower expenses.
choosing between QQQ and SPY boils down to your investment goals, risk tolerance and portfolio strategy. If you're looking for an ETF that offers exposure to high growth companies, with a focus on technology and internet-related stocks, then the QQQ that tracks the NASDAQ-100 may be a better option for you.
As long as your time horizon is three to five years or longer, an S&P 500 index fund could be a good addition to your portfolio. However, any investment can produce poor returns if it's purchased at overvalued prices.