Invest Like Warren Buffett with These ETFs

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By Ian Cooper Updated Published

Quick Read

  • Berkshire Hathaway holds a record $373 billion cash reserve generating billions in annual interest while searching for undervalued investment opportunities.

  • The Schwab US Dividend Equity ETF (SCHD) has surged 11% year-to-date in 2026 as investors rotate toward dividend stocks and defensive sectors over growth investments.

  • The analyst who called NVIDIA in 2010 just named his top 10 AI stocks. Get them here FREE.

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Invest Like Warren Buffett with These ETFs

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One of the most successful investors is Warren Buffett.

At the age of 95, he’s now worth about $142.1 billion after investing in companies that have a wide economic moat, dividends, proven earnings, and companies that are easy to understand. However, the real story for 2026 is his massive cash reserve; reports indicate Berkshire Hathaway is currently sitting on a record $373 billion “war chest,” generating billions in annual interest while waiting for undervalued opportunities.

While many of us may never see that level of wealth, we can still build capital with Buffett-inspired strategies. In fact, here are just a few of the top exchange-traded funds (ETFs) that align with his philosophy of quality, value, and patience.

The Vanguard S&P 500 ETF

“Over the years, I’ve often been asked for investment advice,” Buffett wrote in a 2016 shareholder letter. “My regular recommendation has been a low-cost S&P 500 index fund.”

With that, Buffett has named the Vanguard S&P 500 ETF (VOO | VOO Price Prediction) as one way to invest. While VOO tracks the biggest companies in America, it has faced slight headwinds in early 2026, down approximately 1% year-to-date as investors rotate toward defensive value.

It offers a low-cost way to safely diversify by tracking the biggest companies, making it an ideal “set it and forget it” trade. With an expense ratio of 0.03%, the ETF also pays a quarterly yield to patient shareholders.

VanEck Morningstar Wide Moat ETF

If you follow Warren Buffett, you know he likes companies with a wide economic moat. If you want to invest in companies attractive to the billionaire, ensure they are simple to understand, have proven earnings, and possess a unique advantage over their competition.

With an expense ratio of 0.47%, the VanEck Morningstar Wide Moat ETF (MOAT) tracks companies with sustainable competitive advantages. This fund remains a staple for those seeking “Buffett-style” quality at reasonable prices.

Schwab US Dividend Equity ETF

The Schwab US Dividend Equity ETF (SCHD) tracks 100 high-yielding dividend stocks. After lagging for several years, SCHD has seen a massive comeback in 2026, up approximately 11% year-to-date due to its heavy exposure to energy and defensive sectors.

With an expense ratio of 0.06%, the ETF yields 3.37%, which is about three times the S&P 500’s dividend yield. Since the start of 2026, the fund has rallied significantly as the market prioritizes cash flow over pure growth.

Diversifying the Moat: Schwab International Dividend Equity ETF

While Buffett emphasizes American business, investors in 2026 are finding value in the “International Moat” play. The Schwab International Dividend Equity ETF (SCHY) offers a focus on high profitability and low volatility in international markets, yielding around 3.1% and providing a necessary counterweight to domestic concentration.

The “Cash and Patience” Strategy

Buffett’s current stance is defined by what he isn’t buying. For investors mirroring his 2026 strategy, holding short-term instruments like the Vanguard Short-Term Treasury ETF (VGSH) is a valid move. This mimics Buffett’s 10% estate allocation to Treasuries, allowing investors to earn interest while waiting for a “fat pitch” in a volatile market.

Editor’s Note: This article was updated in May 2026 to reflect Berkshire Hathaway’s record $373 billion cash reserve and the significant year-to-date outperformance of value-oriented funds like SCHD. We have also introduced international and defensive treasury alternatives to reflect the current high-valuation environment and shift in market sentiment toward capital preservation.

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