Fortune recently published an article about Berkshire Hathaway’s (NYSE:BRK.B) net worth is $663 billion, 10 times higher than Nvidia’s (NASDAQ:NVDA) and nearly 12 times Apple’s (NASDAQ:AAPL). 

Of course, by market cap, Warren Buffett’s holding company is only the ninth-largest U.S.-listed business at $1.01 trillion, well behind both Nvidia ($3.58 trillion) and Apple ($3.68 trillion).

Oracle of Omaha has long believed that the best way to value a company is by its net worth, calculated by subtracting its liabilities from its assets. As Fortune pointed out, Buffett said in February, “Berkshire now has—by far—the largest GAAP net worth recorded by any American business.”

While I don’t think it’s ever a bad idea to own Berkshire stock—it’s up nearly 30% in 2024 and 111% over the past five years—there will come a time when Buffett dies. The stock will experience some unusually volatile trading as investors figure out what it means for Berkshire moving forward. 

With that in mind, these three relatively inexpensive, actively managed ETFs can help insulate you from these events while providing a diversified portfolio of quality stocks. 

It’s the best of both worlds.

Key Points About This Article:

• Davis Select U.S. Equity ETF (CBOE BZX:DUSA) provides growth and value.
• FMC Excelsior Focus Equity ETF (NYSEARCA:FMCX) invests in a concentrated portfolio of 25-35 stocks, including Berkshire Hathaway (NYSE:BRK.B).
• JPMorgan Active Value ETF (NYSEARCA:JAVA) might be relatively inexpensive, but its experienced portfolio management team delivers results.
• If you’re looking for some stocks with huge potential, make sure to grab a free copy of our brand-new “The Next NVIDIA” report. It features a software stock we’re confident has 10X potential.

Davis Select U.S. Equity ETF (DUSA)

Davis Select U.S. Equity ETF (CBOE BZX:DUSA) is actively managed by Christopher Davis and Danton Goei. Both have several decades of experience managing portfolios. 

The ETF invests in quality large-cap stocks that are the best in their respective businesses. The managers aim to outperform the S&P 500 by generating alpha through low turnover and long-term holdings while providing their services at a low cost. 

DUSA owns 26 high-conviction stocks compared to 503 for the index. Berkshire is the fund’s third-largest position with a 7.84% weight, 4.7 times the holding company’s weighting in the index. 

Interestingly, while the average holding in the ETF has a five-year annual earnings per share growth rate of 18.8%, 190 basis points higher than the average for the companies in the index, the forward P/E ratio of its stocks is 14.6x, 38% less expensive than the index, providing a combination of value and growth.  

Financials (10.26% of the portfolio), health care (10.2%), and communication services (7.84%) are the three top sectors by weight. The top 10 holdings account for 60% of its $601 million in net assets. 

Launched in January 2017, it has a reasonable management expense ratio of 0.61%. 

FMC Excelsior Focus Equity ETF (FMCX)

FMC Excelsior Focus Equity ETF (NYSEARCA:FMCX) is one of the actively managed ETFs provided by First Manhattan, an asset manager founded in 1964 and managing over $31 billion in assets for clients, including those buying ETFs like FMCX.

The ETF is managed by Himayani Puri, a portfolio manager with nearly three decades of investment management experience, the last six years spent at First Manhattan.   

FMCX invests in a concentrated portfolio of 25-35 large and mid-cap stocks of U.S. companies with durable competitive advantages that generate higher-than-average returns on capital and manage their businesses like owners. 

Berkshire is the fourth-largest holding with a weighting of 5.87%. The top 10 holdings account for 53% of the $106 million in net assets. Technology (34.07%), financials (18.05%), and consumer discretionary (16.13%) are the three top sectors by weight. 

It’s important to know that FMCX is a non-transparent ETF. As such, it doesn’t reveal its holdings daily, updating them every quarter and with a 60-day lag. That enables the portfolio manager to hide their investment strategy from competitors and other investment managers.  

Launched in April 2022, it has a management expense ratio of 0.70%. 

JPMorgan Active Value ETF (JAVA)

JPMorgan Active Value ETF (NYSEARCA:JAVA) is one of ten actively managed ETFs provided by JPMorgan (NYSE:JPM). As of October, Morningstar gave it a Silver medal and four stars in the large-cap value category.  

The ETF is managed by four portfolio managers who have an average of 31 years of experience in the investment industry. It was launched in October 2021 and has attracted nearly $2.5 billion in net assets over three years. 

JAVA invests using a fundamental, bottom-up approach to identify excellent companies at attractive valuations. It is a true large-cap value portfolio. Since its inception in 2021, it has outperformed its Russell 1000 Value Index benchmark by 191 basis points, generating a total return of 10.69%.  

Berkshire is the fourth-largest holding with a weighting of 1.90%. The top 10 holdings account for 20% of the $2.5 billion in net assets. It owns 171 stocks, turning the entire portfolio over once every 14 months.

The top three sectors by weight are financials (28.4%), industrials (14.6%), and health care (13.3%). All 11 sectors have some representation in the ETF, including utilities at 2.8%. 

Although JAVA is a large-cap value fund, 33% of its portfolio is invested in mid-caps and small-caps. The average market cap of the 171 holdings is $89.23 billion, considerably less than the category average of $134.2 billion.  

It has the lowest expense ratio of the three actively managed funds at 0.44%.

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