Warren Buffett is undoubtedly one of the greatest investors of
all time. His track record with picking companies below their
intrinsic value and delivering outsized returns, is second to
Invest like Warren Buffett with these ETFs
Buffett's time-tested investing strategies yet again delivered
solid results. His flagship company Berkshire Hathaway reported
net earnings of $4.5 billion for the second quarter of 2013, up
46% from the same quarter of 2012.
Operating earnings (excluding investments and derivative
gains/losses) came in at $3.9 billion or $2,384 up from $2,252 in
the prior-year quarter and substantially ahead of the street
3 Top ranked ETFs for the earnings season
Investment income from the insurance operations increased 7.1%
to $1.14 billion, while operating profit at the company's
noninsurance units climbed 7.8% to $2.37 billion.
The conglomerate that includes insurance, railroads companies
and a wide range of consumer products businesses had reported 41%
increase in earnings for the first quarter. (Read:
Beat the market with 'pure' ETF strategies
For investing like Buffet, investors could look at some of the
that include Berkshire shares in a large proportion in their
RevenueShares Financials Sector Fund (
RWW holds the same securities as the S&P 500 Financials
Index but these 81 securities in the fund are ranked by their
revenue, instead of market capitalization. The fund is
re-balanced quarterly to reflect updated revenue data.
Berkshire Hathaway is the top holding of the fund with 11.6%
of the asset base, followed by JP Morgan (7.5%) and Bank of
The index and the fund have generally been outperforming their
market cap weighted cousin but the outperformance comes with
slightly higher expense ratio of 49 basis points.
RWW is currently a Zacks Rank #2 (Buy) ETF.
S&P Financial Select Sector SPDR Fund (
The largest and the cheapest fund within the financials
space--XLF tracks S&P Financial Select Sector Index. Launched
in December 1998, this fund has attracted more than $16.9 billion
in assets so far.
The product holds 82 securities in its basket, with top
allocations to Wells Fargo (8.5%), Berkshire Hathaway (8.4%) and
JP Morgan (8.4%). It charges an expense ratio of just 18 basis
points and has a dividend yield of 1.5% currently.
XLF is currently a Zacks Rank #1 (Strong Buy) ETF.
iShares U.S. Financials ETF (
The fund which made its debut in May 2000 currently has $1.3
billion in AUM, invested in 261 securities.
Berkshire is among the top three holdings with 6.4% of the
asset base; Wells Fargo (6.5%) and JP Morgan (6.4%) are the other
two. Banks take the largest share of the basket with 33.3% of the
assets, followed by Financial Services (24.7%) and Non-life
The product charges 46 basis points in annual fees and pays
dividends at 1.3% annual yield.
IYF is currently a Zacks Rank #2 (Buy) ETF.
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ISHARS-US FN SE (IYF): ETF Research Reports
REVENU-FINL SEC (RWW): ETF Research Reports
SPDR-FINL SELS (XLF): ETF Research Reports
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