Warren Buffet has endorsed holding an S&P500 index fund many times. He has not endorsed SPY as a vehicle for that. SPY is more than twice as expensive as Vangua

Warren Buffet has endorsed holding an S&P500 index fund many times. He has not endorsed SPY as a vehicle for that. SPY is more than twice as expensive as Vanguard's or iShare's S&P500 funds, and has lagged them since inception. It is also the case that SPY is organized as a unit investment trust so it cannot lend shares for securities lending revenue, as other S&P500 index funds can and do. For all these reasons, I expect SPY to underperform VOO. In fact Warren Buffett picked Vanguard's S&P500 fund for his long bet (http://longbets.org/362/ http://longbets.org/362/) Agree with the rest of your post. Taylor Larimore is a mensch.