The Vanguard ETF That Warren Buffett's Comments Point to as a Top Pick Today

Renowned investor Warren Buffett has for decades spoken about the benefits of long-term, low-cost, fundamentals-based investing. The largest positions in the portfolio of his Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) are Apple (NASDAQ: AAPL), American Express (NYSE: AXP), and Bank of America (NYSE: BAC). All are quality companies with healthy balance sheets, lots of cash flow, and strong positions within their industries.

Some investors looking to follow the Buffett style are willing to spend the time researching and studying individual stocks. But what about the people who simply want to invest without all of the work?

Buffett has a suggestion for those folks, too.

In many cases, he thinks investors need to keep it simple, diversified, and cheap. The one place he's consistently said people should invest is the S&P 500 (SNPINDEX: ^GSPC). That makes the Vanguard S&P 500 ETF (NYSEMKT: VOO) a true Buffett-endorsed investment idea.

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Why Warren Buffett likes the S&P 500

Not only has Buffett touted investing in the S&P 500 as the best long-term option for most investors, it's a strategy he advocates for his wife after his death.

In his 2013 letter to Berkshire shareholders, Buffett wrote:

... ignore the chatter, keep your costs minimal, and invest in stocks as you would in a farm.

My money, I should add, is where my mouth is: What I advise here is essentially identical to certain instructions I’ve laid out in my will. One bequest provides that cash will be delivered to a trustee for my wife’s benefit. ... My advice to the trustee could not be more simple: Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund. (I suggest Vanguard’s.) I believe the trust’s long-term results from this policy will be superior to those attained by most investors –- whether pension funds, institutions or individuals -- who employ high-fee managers.

With this quote, Buffett emphasizes something that he's insinuated for years. High fees and emotional decision-making are the two biggest factors that can damage investor returns. Instead of trying to beat and/or time the market, simply buy and hold a diversified portfolio of the biggest and best U.S. companies and pay next to nothing for doing so.

His endorsement of Vanguard and VOO -- which launched in 2010 -- aligns with that philosophy. The simple and cheap approach utilized by Vanguard tends to do the best job for the majority of people.

Buffett isn't bothered by volatility

At the 2025 Berkshire Hathaway annual meeting in September, Buffett said he wasn't terribly concerned about the market volatility that was occurring thanks to April 1st's "Liberation Day" that introduced the world to President Donald Trump's global tariff policy.

Even as the S&P 500 was dropping more than 15% at the time, Buffett said:

I don't get fearful by things that other people ... are afraid of in a financial way. ... Let's say Berkshire went down 50% next week, I would regard that as a fantastic opportunity, and it wouldn't bother me in the least. ... This has not been a dramatic bear market or anything of the sort.

This helped reaffirm Buffett's philosophy that he focuses on the long term and always looks for value. While a 50% loss would send most people into a panic, Buffett looks at it as an opportunity to pick up an asset at a sale price. Instead of giving into emotional decision-making, he looks to buy a good asset at the right price.

This isn't specifically an endorsement for investing in the S&P 500, but the Vanguard S&P 500 ETF would be the ETF to target if you're looking to invest with this same long-term mentality. Avoid the temptation to time the market and simply take advantage of long-term compounding by buying quality assets, such as U.S. large-cap stocks.

The big picture

Warren Buffett has said in the past that investing in the S&P 500 is the best way to go for most inexperienced investors. He even called out the Vanguard S&P 500 ETF as the one he prefers.

For one of the most successful investors of all time who buys individual stocks, this is about as good a seal of approval for an ETF as you'll get.

The fundamental principles of simplicity, diversification, low cost, and long-term focus that come with investing in VOO align perfectly with the Warren Buffett vision.

Bank of America is an advertising partner of Motley Fool Money. American Express is an advertising partner of Motley Fool Money. David Dierking has positions in Apple. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Vanguard S&P 500 ETF. The Motley Fool has a disclosure policy.