The name Warren Buffett has become interchangeable with Berkshire Hathaway (NYSE:BRK-B | BRK-B Price Prediction). But in a separate portfolio, he holds ETFs like the iShares Core MSCI EA (BATS:IEFA), Vanguard High Dividend Yield Index Fund ETF (NYSEARCA:VYM), and iShares Core MSCI International Developed Markets ETF (NYSEARCA:IDEV) in his portfolio.
Buffett is expected to retire soon and pass on the helm to Greg Abel, but he will still be in the loop as chairman and the controlling shareholder. Anyhow, investors are sparing no time to sift through all his recent investments. Q4 2025’s 13F report will be the final one with Buffett as CEO.
But all the reports don’t necessarily have to come directly from Berkshire Hathaway, nor do they have to be individual stocks.
Buffett’s “secret portfolio” comes from a company called New England Asset Management, itself owned by Berkshire Hathaway. It contains a large roster of interesting exchange-traded funds. These are worth looking into if you like ETFs more and don’t want to actively invest and shuffle through dozens of individual stocks.
Do note that the top two holdings are SPDR S&P 500 ETF Trust (NYSEARCA:SPY), Vanguard S&P 500 ETF (NYSEARCA:VOO). Both combine to a 16.13% exposure to the S&P 500. The ETFs we will be discussing today are the 3rd, 4th, and 5th largest. The motivations for investing in the S&P 500 are more or less universal, whereas the three ETFs being discussed here are “under the radar” in comparison.
Without further ado, let’s dive in.
iShares Core MSCI EA (IEFA)
The iShares Core MSCI EAFE ETF is designed to give you one-stop exposure to developed-market stocks outside the U.S. and Canada. It does this by tracking the MSCI EAFE IMI Index. You’re targeting stocks in countries all over Europe, plus Australia, New Zealand, Japan, Taiwan, South Korea… essentially the first-world countries.
What this does is separate you from all the risks that come with targeting non-developed countries. They come with pitfalls such as unstable currencies and political environments that make doing business there rather precarious. The IEFA targets countries that do not have these problems while giving you the benefits of investing in international stocks. It’s a win-win.
IEFA has outperformed both the S&P 500 and the Nasdaq-100 indexes year-to-date. It is up 27.8% and can accelerate more if the U.S. dollar continues sliding.
If that’s not good enough, you get a 3.5% dividend yield. The ultra-low 0.07% expense ratio is more icing on the cake.
New England Asset Management allocates 6.37% of its portfolio here, valued at $48.7 million. NEAM increased its holdings here by 35.23% in Q3
Vanguard High Dividend Yield Index Fund ETF (VYM)
The Vanguard High Dividend Yield Index Fund ETF tracks the FTSE High Dividend Yield Index and gives you exposure to U.S. stocks with above-average dividend yields. The index excludes REITs and ranks large and medium companies by their expected dividend yield over the next year. Then, the higher-yielding half is selected, with weighting based on a float-adjusted market capitalization.
In theory, VYM does not target growth much and is mostly for those who are looking for high yield. However, it has done surprisingly well for a dividend ETF and is up 13.74% in the past year.
This may not look as impressive in comparison to the ETF featured above, but it is very good when you compare it to other dividend ETFs like Schwab US Dividend Equity ETF (NYSEARCA:SCHD). The catch is that there’s heavy tech and financials exposure. Broadcom (NASDAQ:AVGO) is the top holding, with an 8.69% weight.
You get a 2.41% dividend yield and an expense ratio of 0.06%, or $6 per $10,000.
4.62% of NEAM’s portfolio is VYM, worth $35.37 million. NEAM increased its holdings here by 1.77% in Q3
iShares Core MSCI International Developed Markets ETF (IDEV)
IDEV is very similar to IEFA, as it also targets developed markets internationally by tracking an MSCI “World ex USA” investable market index. What separates them is the index coverage, since IDEV includes Canada, whereas IEFA does not. This alone can change the equation a little since Canada has dominant companies in the financial and commodities sectors.
IDEV is up 28.6% year-to-date and has a lower expense ratio of 0.04%, or $4 per $10,000. The dividend yield is 3.38%.
IDEV constitutes 4.41% of NEAM’s portfolio, valued at $33.72 million. NEAM increased its holdings here by 30.1% in Q3.
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