“Over the years, I’ve often been asked for investment advice,” billionaire Warrant Buffett once wrote in a 2013 shareholder letter. “My regular recommendation has been a low-cost S&P 500 index fund.” With that, Buffett would name the Vanguard S&P 500 ETF (NYSEARCA: VOO).

One of its biggest selling points is its low cost. VOO charges an annual expense ratio of just 0.03%. That works out to about $3 a year for every $10,000 invested. The fund also spreads your investment across 505 well-trusted stocks in several industries, including technology, healthcare, and financial services, allowing for maximum diversification. 

Some of its top holdings include NVIDIA, Apple, Microsoft, Amazon, Alphabet, Broadcom, Meta Platforms, and Micron Technology to name just a few of its total 505 holdings.

For investors with a long-time horizon, VOO offers a simple combination: low fees, exposure to major U.S. businesses, and dividend payments that can be reinvested. It’s an accessible way to build stock market exposure without having to manage a portfolio of individual stocks.

Even better, the VOO ETF pays a quarterly dividend. It’s last one for just over. $1.822 per share was paid on September 30. Before that, VOO paid a dividend of just over $1.96 on June 30. And before that, it paid out just over $1.87 per share on March 31. In short, it you’re looking for safe diversification with 505 of the most trusted companies, yield, and Buffett approval to boot, you may want to consider the VOO ETF as a long-term investment.

Sincerely,

Ian Cooper