OMAHA, August 1, 2026, 11:17 CDT
- Berkshire Hathaway NYSE:BRK.B advanced 3.4% over the past week. Top S&P 500 ETFs added around 1.1%.
- Vanguard S&P 500 ETF NYSEARCA:VOO and iShares Core S&P 500 ETF (NYSEARCA:IVV) have an expense ratio of 0.03%. SPDR S&P 500 ETF Trust NYSEARCA:SPY applies a fee of 0.0945%.
- As of July 30, Apple Inc. NASDAQ:AAPL, NVIDIA Corp. NASDAQ:NVDA, and Microsoft Corp. NASDAQ:MSFT accounted for 20.27% of SPY.
On Thursday, SPY allocated 20.27% of its assets to three stocks. Apple, Nvidia and Microsoft all surpassed the 5% mark. If all three moved 1% in tandem, SPY would shift by roughly 0.20 percentage point, assuming no movement elsewhere.
This situation amounts to 3.1 years’ worth of the fee difference. SPY’s expense ratio stands at 0.0945%, while VOO and IVV list charges of 0.03% each. For a $2,000 investment, the yearly difference totals $1.29. Each of the three funds follows the same benchmark index.
| Fund | July 31 close | Expense ratio | Annual fee on $2,000 | Friday volume |
|---|---|---|---|---|
| VOO | $686.65 | 0.0300% | $0.60 | 7.72 million |
| IVV | $750.32 | 0.0300% | $0.60 | 4.90 million |
| SPY | $747.03 | 0.0945% | $1.89 | 62.45 million |
Annual fee calculations are based on multiplying every ratio by $2,000. Figures for Friday’s prices and trading volumes reflect closing numbers. SPY recorded a share volume eightfold that of VOO and almost 13 times IVV’s. The fee spread stood at 6.45 basis points.
U.S. cash markets remained closed on Saturday. The previous session wrapped up a turbulent week, with the S&P 500 rising 1%. The Nasdaq finished 1.6% higher, while the Dow advanced 1%. Berkshire ended at $511.54, marking a 3.4% gain over the week.
| Security | July 24 close | July 31 close | Weekly price change | Friday change |
|---|---|---|---|---|
| Berkshire Class B | $494.93 | $511.54 | up 3.36% | up 0.36% |
| VOO | $679.14 | $686.65 | up 1.11% | up 0.71% |
| IVV | $742.36 | $750.32 | up 1.07% | up 0.69% |
| SPY | $738.93 | $747.03 | up 1.10% | up 0.72% |
Weekly shifts reflect price-return figures based on the cited closing values. Berkshire outperformed the trio of ETFs by approximately 2.3 percentage points. However, this single-week advantage does not alter Buffett’s stated allocation guideline.
In his 2013 letter to shareholders, Buffett allocated 90% of a bequest to “a very low-cost S&P 500 index fund,” with the remaining 10% directed to short-term government bonds. He recommended Vanguard. Berkshire Hathaway
The referenced Motley Fool piece applies that guidance in recommending VOO. Vanguard reports an expense ratio of 0.03% for the fund, with a market price of $686.65 as of Friday.
The standalone Moneywise piece focuses on family choices rather than investment portfolios. All three of Buffett’s children did not complete college degrees. Susie was three credits short of graduation, while Howard and Peter also did not finish. According to the report, Buffett allowed them freedom to decide on the careers they found best.
Their professional paths took different directions. Susie pursued work in education and charitable causes, while Howard focused on agriculture and environmental stewardship. Peter went on to establish himself both as a composer and benefactor. Both reports indicate Buffett establishes boundaries but allows room for individual decisions.
The index fund remains heavily tilted toward a few large-cap stocks. According to Thursday’s official SPY weightings, just three firms exert significant influence over the portfolio.
| SPY holding | Weight as of July 30 | Projected SPY shift on a 1% stock move |
|---|---|---|
| Apple | 7.65% | 0.0765 percentage point |
| Nvidia | 7.38% | 0.0738 percentage point |
| Microsoft | 5.24% | 0.0524 percentage point |
| Combined | 20.27% | 0.2027 percentage point |
Estimates are based on a 1% move in the stock and all other factors unchanged. The combined scenario equates to 3.1 times the annual fee spread. Changing S&P 500 wrappers does not diminish that risk, but a shift in asset allocation can.
A direct test is ahead next week. A Reuters poll projects July payrolls will increase by 83,000, and forecasts unemployment at 4.3% on August 7. Over a quarter of S&P 500 firms are scheduled to release results. Adjusted quarterly profit is currently running 29.3% higher than a year earlier.
| Next-week item | Timing | Preliminary baseline | Main market channel |
|---|---|---|---|
| July payroll data | August 7 | Expected gain of 83,000 jobs; unemployment at 4.3% | Interest rate outlook |
| S&P 500 earnings | August 3-7 | Over 25% of firms reporting; annual profit up 29.3% | Major earnings impact |
| September Fed rate | Start of the week | Odds of rate hike at 64% | Stock valuations |
Initial market expectations for the poll, earnings speed, and interest rate likelihood are reflected in estimates. Yung-Yu Ma, chief investment strategist at PNC Financial Services Group NYSE:PNC, stated the market was “searching to regain its footing.” He also noted that earnings “should provide stability.” Reuters
Risks: Payroll figures exceeding expectations may boost speculation on rate hikes. A downturn in mega-cap tech stocks would impact all three ETFs at once. Minimal fees do not guard against declines in valuations.
An investor with $2,000 would save $1.29 each year by switching from SPY to VOO. To reduce Thursday’s 20.27% weighting, it is necessary to invest beyond the same index.
Related articles: NYSE:BRK.B
