Top Warren Buffett-Recommended ETFs for US Investors (2025)

For US and Canadian investors in 2025 who want to follow Warren Buffett’s advice, here are the top ETFs that closely match his recommendations and investing philosophy:

Top Warren Buffett-Recommended ETFs for US Investors (2025)

1. S&P 500 Index ETFs

   • Vanguard S&P 500 ETF (VOO)

   • SPDR S&P 500 ETF Trust (SPY)

   • iShares Core S&P 500 ETF (IVV)

   • These are Buffett’s top pick for almost all investors, providing broad, low-cost exposure to the US market’s best companies.

2. Sector & Strategy ETFs

   • Market Vectors Wide Moat ETF (MOAT): Tracks high-quality companies with sustainable competitive advantages (“economic moats”)—a core Buffett criterion.

   • iShares U.S. Financials ETF (IYF): Focuses on leading US financial companies, including many that Buffett’s Berkshire owns.

   • Invesco QQQ Trust (QQQ): Offers top tech and consumer companies, including Buffett favorites like Apple and Amazon; suitable for those seeking growth.

3. Berkshire-Themed and Quality-Focused ETFs

   • VistaShares Target 15 Berkshire Select Income ETF (OMAH): Direct exposure to Buffett’s biggest holdings (including Berkshire Hathaway stock) plus an income spin for those wanting yield.

   • iShares Edge MSCI USA Quality Factor ETF (QUAL): Invests in large and mid-cap US stocks with high return on equity, stable earnings, and low leverage—attributes Buffett values highly.

Top Buffett-Style ETFs for Canadian Investors (2025)

1. Canadian Broad Market & S&P 500 ETFs

   • Vanguard FTSE Canada All Cap Index ETF (VCN): Broad exposure to Canadian equities of all sizes; low fees, strong sector diversity.

   • BMO S&P 500 Index ETF (ZSP): For Canadians seeking US market returns in CAD with ultra-low fees, ideal for a “Buffett 90/10 portfolio” setup.

   • iShares Core Equity ETF Portfolio (XEQT): All-in-one approach, excellent for set-and-forget investors.

   • BMO S&P/TSX Capped Composite Index ETF (ZCN): Covers nearly all Canadian public stocks, capping big firms to reduce risk from over-concentration.

2. Buffett-Themed Options in Canada

   • BRKY ETF: A Canadian-listed ETF holding Berkshire Hathaway shares and employing a covered call strategy for income-focused investors.

Key Points

• Buffett’s own will and repeated advice specify a 90% S&P 500 ETF / 10% Treasury Bills portfolio as his default plan for most Americans and his family.

• For Canadians, use broad-based Canadian equity ETFs alongside S&P 500 ETFs (CAD-hedged or unhedged), following the same “diversify, buy, and hold for decades” philosophy.

• Specialty ETFs focusing on quality, economic moats, or Berkshire’s portfolio are suitable satellite holdings but should not replace core low-cost index ETFs.

Vanguard S&P 500 ETF (VOO) Performance (2019–2023)

• 5-Year CAGR (2019-2023): Approximately 11.87% per year (total returns including dividends)

• Dividend Yield (2024): Around 1.3% to 1.4% (total dividends paid roughly $6.70 per share annually recently)

• VOO has returned solid growth with dividends steadily increasing, supporting income plus capital appreciation.

VanEck Morningstar Wide Moat ETF (MOAT) Performance (2019–2023)

• 5-Year CAGR (2019–2023): Approximately 15.48% per annum (total returns including dividends)

• Dividend Yield: Around 1.6% to 1.7% annually, reflecting steady income to investors.

• Expense Ratio: 0.47% annually.

iShares MSCI USA Quality Factor ETF (QUAL) Performance (2019–2023)

• 5-Year CAGR (2019–2023): Approximately 13.7% per annum (total returns with dividends reinvested)

• Dividend Yield: Steady around 1.3%–1.5% annually

• Expense Ratio: 0.15%

VistaShares Target 15 Berkshire Select Income ETF (OMAH) Performance (2019–2023)

(OMAH was launched in 2024, so full 5-year data is not available; here’s the available data from 2024 onwards.)

• Yield Focus: Approximately 15% annual income, generated through covered call overlays on Berkshire Hathaway and related holdings.

• Expense Ratio: ~0.69% (higher due to active income strategy).

• Ideal for income-seeking investors wanting Buffett exposure with enhanced yield.

*Note: Since this ETF is new (2024 launch), longer historical return data is unavailable.

Vanguard FTSE Canada All Cap Index ETF (VCN) Performance (2019–2023)

• 5-Year CAGR (2019–2023): Approximately 10.5% per annum total return including dividends

• Dividend Yield: Strong around 3.5% to 4.2% annually, higher than US ETFs due to Canadian market characteristics.

• Expense Ratio: 0.06%

BMO S&P 500 Index ETF (ZSP) Performance (2019–2023)

• 5-Year CAGR (2019–2023): Approximately 11.8% annually total return including dividends

• Dividend Yield: Around 1.5%–1.7% typical for S&P 500 ETFs

• Expense Ratio: ~0.08%

iShares Core Equity ETF Portfolio (XEQT) Performance (2019–2023)

• 5-Year CAGR (2019–2023): Approximately 11.0% total return

• Dividend Yield: Moderate yield around 2.5%–3.1% annually

• Expense Ratio: 0.20%

BMO S&P/TSX Capped Composite Index ETF (ZCN) Performance (2019–2023)

• 5-Year CAGR (2019–2023): Approx. 10.7% annual total return

• Dividend Yield: Around 3.7%–4.2% annually

• Expense Ratio: 0.06%

Summary Table of CAGR & Dividend Yields (2019–2023)

*OMAH is an income ETF with a covered call strategy and does not have full historical data yet.

In summary: Low-cost S&P 500 index funds/ETFs remain Buffett’s #1 choice for most investors in the US and Canada, regardless of market cycles. Supplement with wide moat, high-quality, or Berkshire-focused ETFs for those wanting an added Buffett flavor, but always make core diversification your priority

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