STOCKS | Buffett-Recommended Vanguard S&P 500 ETF Is Framed as a Long-Term Buy

Anthony Di Pizio of The Motley Fool said that if he were in his 20s, he would buy the Vanguard ETF recommended by Warren Buffett and hold it forever. According to Sina Finance, the article argues that the Vanguard S&P 500 ETF (VOO) offers broad exposure to 11 U.S. economic sectors, with low fees and long-term diversification. The piece says the S&P 500 requires companies to have a market value of at least $22.7 billion and to be profitable, with final inclusion decided by a committee. It also says information technology accounts for 36.6% of the index, and that Nvidia, Apple, Microsoft, Broadcom, and Micron Technology are five trillion-dollar companies in that sector. According to the article, the S&P 500's annualized return was 10.7% since its creation in 1957, and 13.9% after Buffett recommended the ETF in 2014. It adds that VOO's expense ratio is 0.03%, meaning a $10,000 investment would generate $3 in annual management fees.