Warren Buffett’s Berkshire Hathaway (BRK.B) sold its positions in two popular ETFs tracking the S&P 500 Index (SPX), the SPDR S&P 500 ETF Trust (SPY) and the Vanguard S&P 500 ETF (VOO), during the fourth quarter of 2024. While the investor has not disclosed the specific reasons, this move has raised eyebrows. Thus, if you are looking beyond the typical SPY and VOO ETFs for S&P 500 exposure, here are two alternative ETFs to consider – Invesco S&P 500 Equal Weight ETF (RSP) and SPDR Portfolio S&P 500 Value ETF (SPYV).
Invesco S&P 500 Equal Weight ETF
Unlike SPY and VOO, which are market-cap weighted, RSP gives each company in the S&P 500 equal weight. This lowers concentration risk as the performance isn’t dominated by a few large-cap stocks and provides more diversified exposure to the index.
Overall, the ETF has $75.79 billion in assets under management (AUM) and an expense ratio of 0.2%. Over the past year, the RSP ETF has generated a return of 12.91%.
On TipRanks, RSP has a Moderate Buy consensus rating based on 409 Buys, 91 Holds, and six Sells assigned in the last three months. At $205.30, the average RSP ETF price target implies 14.2% upside potential.
SPDR Portfolio S&P 500 Value ETF
The SPYV ETF focuses on the value portion of the S&P 500, investing in companies with lower price-to-book ratios and other value characteristics. It can provide a more defensive position during economic downturns.
Overall, the ETF has $25.57 million in AUM. Additionally, it has an expense ratio of 0.04%. The SPYV ETF has returned 12.26% in the past six months.
Turning to Wall Street, the ETF has a Moderate Buy consensus rating. Of the 403 stocks held, 321 have Buys, 77 have a Hold, and five Sell rating. At $60.29, the average SPYV ETF price target implies a 15.06% upside potential.
Concluding Thoughts
While Warren Buffett’s decision to sell SPY and VOO may have surprised investors, it opens a window to explore other S&P 500 ETFs that may better align with their investment goals. Both Invesco S&P 500 Equal Weight and the SPDR Portfolio S&P 500 Value ETF offer a different investment strategy compared to VOO and SPY.