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. Image Credits: CNBC [{ "selector": ".lifig-a", "duration": "500ms", "fill": "forwards", "delay": "1500ms", "keyframes": [ {"offset": 0, "opacity": 0}, {"offset": 1, "opacity": "1"} ] }, { "selector": ".wuzfj-a", "duration": "500ms", "fill": "forwards", "delay": "2000ms", "keyframes": [ {"offset": 0, "opacity": 0}, {"offset": 1, "opacity": "80%"} ] }, { "selector": ".jtklt-a", "duration": "500ms", "fill": "forwards", "delay": "2500ms", "keyframes": [ {"offset": 0, "opacity": 0}, {"offset": 1, "opacity": "1"} ] }]

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. Image Credits: Unsplash [{ "selector": ".skksu-a", "duration": "500ms", "fill": "forwards", "delay": "400ms", "keyframes": [ {"offset": 0, "opacity": 0}, {"offset": 1, "opacity": "80%"} ] }, { "selector": ".xauax-a", "duration": "500ms", "fill": "forwards", "delay": "2500ms", "keyframes": [ {"offset": 0, "opacity": 0}, {"offset": 1, "opacity": "1"} ] }]

Savitha still approves of Buffett's long-term strategy. nonetheless, notes that different investors have various time horizons. Image Credits: Unsplash [{ "selector": ".kopig-a", "duration": "500ms", "fill": "forwards", "delay": "400ms", "keyframes": [ {"offset": 0, "opacity": 0}, {"offset": 1, "opacity": "80%"} ] }, { "selector": ".ispos-a", "duration": "500ms", "fill": "forwards", "delay": "2500ms", "keyframes": [ {"offset": 0, "opacity": 0}, {"offset": 1, "opacity": "1"} ] }]

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) Image Credits: Unsplash [{ "selector": ".ujcoq-a", "duration": "500ms", "fill": "forwards", "delay": "400ms", "keyframes": [ {"offset": 0, "opacity": 0}, {"offset": 1, "opacity": "80%"} ] }, { "selector": ".wuubd-a", "duration": "500ms", "fill": "forwards", "delay": "2500ms", "keyframes": [ {"offset": 0, "opacity": 0}, {"offset": 1, "opacity": "1"} ] }]

Compared to the index's 27% return, the best-performing sector for the S&P 500 in 2021 returned a total of 53%. Image Credits: Unsplash [{ "selector": ".sngda-a", "duration": "500ms", "fill": "forwards", "delay": "400ms", "keyframes": [ {"offset": 0, "opacity": 0}, {"offset": 1, "opacity": "80%"} ] }, { "selector": ".nfiju-a", "duration": "500ms", "fill": "forwards", "delay": "2500ms", "keyframes": [ {"offset": 0, "opacity": 0}, {"offset": 1, "opacity": "1"} ] }]

In stark contrast to the market's double-digit loss, the Energy Select Sector SPDR Fund (XLE) is up a healthy 35%. Image Credits: Unsplash [{ "selector": ".eqpag-a", "duration": "500ms", "fill": "forwards", "delay": "400ms", "keyframes": [ {"offset": 0, "opacity": 0}, {"offset": 1, "opacity": "80%"} ] }, { "selector": ".awdrt-a", "duration": "500ms", "fill": "forwards", "delay": "2500ms", "keyframes": [ {"offset": 0, "opacity": 0}, {"offset": 1, "opacity": "1"} ] }]

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