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4 ETF Strategies to Follow Warren Buffett's Vision
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Billionaire investor Warren Buffett is famous for his incredible investment ideas. If you an ardent follower of the investment guru Warren Buffett, you might find his latest suggestions intriguing.
Normally, Buffett takes interest in companies trading below what he believes is their intrinsic value. He aims for long-term outperformance and apparently ignores short-term downturns.
With COVID-19 bringing about a vast change in the global investment backdrop, many are waiting for the predictions from the Oracle of Omaha on what lies ahead. For them, below we highlight a few investing strategies.
Against this backdrop, below we highlight a few ETF strategies that could be followed if you are a fan of Warren Buffet.
ETF Strategies in Focus
Consumer Stocks: A Great Buy Now?
The highly anticipated 13-F revealed that Buffett added to his positions in grocery chain Kroger (KR - Free Report) and high-end furniture retailer RH (RH). Widespread vaccination, reopening of the economy and the summer season making Americans feel more optimistic about the economy and leading them to splurge in buying things. Additionally, a huge infrastructure spending package and decent jobs data are acting as a huge catalyst for consumers to spend higher.
Transaction volumes on customers’ credit and debit cards, and over the Zelle payment network grew 20% in the first half of 2021 compared to this timeframe in 2019, per the Bank of America (which is the second-biggest U.S. bank) CEO Brian Moynihan, as quoted on CNBC. This indicates that retail stocks should be in fine fettle in the second half of the year (read: Here's Why Retail ETFs Are Good Picks Right Now).
Hence, ETFs like SPDR S&P Retail ETF (XRT - Free Report) , Consumer Staples Select Sector SPDR ETF (XLP) andVanEck Vectors Retail ETF (RTH) are the options to play here.
Financial ETFs to Gain Ahead?
Berkshire slightly added exposure in insurance brokerage Aon (AON) after buying if for the first time in the first quarter. VictoryShares Dividend Accelerator ETF (VSDA - Free Report) has focus on AON stock.
Time to Avert Healthcare Stocks?
Berkshire Hathaway trimmed its stakes in three drug stocks — AbbVie, Bristol Myers Squibb and Merck. AbbVie has solid exposure in Microsectors Cannabis ETN and First Trust Nasdaq Pharmaceuticals ETF (FTXH). Bristol Myers Squibb has exposure to VanEck Vectors Pharmaceutical ETF (PPH) while Merck has solid exposure to FTXH and Invesco Dynamic Pharmaceuticals ETF (PJP). So, investors may take a second look at their holdings in such stocks.
Time to Avert General Motors
The fund First Trust NASDAQ Global Auto Index Fund CRAZ puts about 6.91% in General Motors. First Trust Nasdaq Transportation ETF (FTXR) too has some exposure to the stock.
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4 ETF Strategies to Follow Warren Buffett's Vision
Billionaire investor Warren Buffett is famous for his incredible investment ideas. If you an ardent follower of the investment guru Warren Buffett, you might find his latest suggestions intriguing.
Normally, Buffett takes interest in companies trading below what he believes is their intrinsic value. He aims for long-term outperformance and apparently ignores short-term downturns.
With COVID-19 bringing about a vast change in the global investment backdrop, many are waiting for the predictions from the Oracle of Omaha on what lies ahead. For them, below we highlight a few investing strategies.
Against this backdrop, below we highlight a few ETF strategies that could be followed if you are a fan of Warren Buffet.
ETF Strategies in Focus
Consumer Stocks: A Great Buy Now?
The highly anticipated 13-F revealed that Buffett added to his positions in grocery chain Kroger (KR - Free Report) and high-end furniture retailer RH (RH). Widespread vaccination, reopening of the economy and the summer season making Americans feel more optimistic about the economy and leading them to splurge in buying things. Additionally, a huge infrastructure spending package and decent jobs data are acting as a huge catalyst for consumers to spend higher.
Transaction volumes on customers’ credit and debit cards, and over the Zelle payment network grew 20% in the first half of 2021 compared to this timeframe in 2019, per the Bank of America (which is the second-biggest U.S. bank) CEO Brian Moynihan, as quoted on CNBC. This indicates that retail stocks should be in fine fettle in the second half of the year (read: Here's Why Retail ETFs Are Good Picks Right Now).
Hence, ETFs like SPDR S&P Retail ETF (XRT - Free Report) , Consumer Staples Select Sector SPDR ETF (XLP) andVanEck Vectors Retail ETF (RTH) are the options to play here.
Financial ETFs to Gain Ahead?
Berkshire slightly added exposure in insurance brokerage Aon (AON) after buying if for the first time in the first quarter. VictoryShares Dividend Accelerator ETF (VSDA - Free Report) has focus on AON stock.
Time to Avert Healthcare Stocks?
Berkshire Hathaway trimmed its stakes in three drug stocks — AbbVie, Bristol Myers Squibb and Merck. AbbVie has solid exposure in Microsectors Cannabis ETN and First Trust Nasdaq Pharmaceuticals ETF (FTXH). Bristol Myers Squibb has exposure to VanEck Vectors Pharmaceutical ETF (PPH) while Merck has solid exposure to FTXH and Invesco Dynamic Pharmaceuticals ETF (PJP). So, investors may take a second look at their holdings in such stocks.
Time to Avert General Motors
The fund First Trust NASDAQ Global Auto Index Fund CRAZ puts about 6.91% in General Motors. First Trust Nasdaq Transportation ETF (FTXR) too has some exposure to the stock.