Buffett’s Will Calls for 90% in Vanguard S&P 500 ETF, 10% T-Bills
VOO•Warren Buffett’s estate plan directs his wife’s inheritance to allocate 90% to Vanguard’s S&P 500 ETF and 10% to Treasury bills, underscoring his decades-long advocacy and history of beating hedge funds with S&P 500 exposure. However, rising tech-sector weight in S&P 500 ETFs has pushed their volatility up, raising caution for investors.
1. Buffett’s Estate Plan Endorses VOO
Buffett’s will specifies allocating 90% of his widow’s inheritance to Vanguard’s S&P 500 ETF and 10% to short-term Treasury bills, reflecting his belief that a broad market index outperforms active management over time.
2. Rising Tech Concentration Heightens Volatility
S&P 500 ETFs have increased their tech-sector weight to over 30% of the index, driving higher daily price swings and pushing one-year volatility above 15%, which could challenge passive investors during market corrections.
3. Historical Outperformance Over Hedge Funds
Buffett famously won a 10-year bet in 2020 demonstrating that the S&P 500 beat a selection of hedge funds, reinforcing his long-standing view that low-cost index exposure delivers superior risk-adjusted returns.
