Warren Buffett advises to consider low-cost index funds

Warren Buffet once said that, owning the S&P 500 index fund, is the best thing any investor can do.

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According to Savita Subramanian, head of U.S. equity and quantitative strategy at Bank of America, strategy may not be the best option in the current market scenario.

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Savitha still approves of Buffett's long-term strategy. nonetheless, notes that different investors have various time horizons.

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Investors can gain exposure to small-cap companies by using ETFs. Funds like the iShares Russell 2000 ETF and the Vanguard S&P Small-Cap 600 ETF (VIOO)

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Compared to the index's 27% return, the best-performing sector for the S&P 500 in 2021 returned a total of 53%.

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In stark contrast to the market's double-digit loss, the Energy Select Sector SPDR Fund (XLE) is up a healthy 35%.

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