3 Dividend ETFs Warren Buffett Owns That No One Talks About

"Warren Buffett is not fully out of the picture and has an indirect stake in a secret portfolio that gives him exposure to the iShares Core MSCI EAFE ETF (BATS:IEFA), Vanguard High Dividend Yield ETF (NYSEARCA:VYM), and iShares Core MSCI International Developed Markets ETF (NYSEARCA:IDEV). Buffett may no longer be Berkshire Hathaway's (NYSE:BRK-B) CEO, but he is still the Chairman and retains significant shares, especially A-class shares with voting power. And Berkshire itself owns a little-known company with a portfolio of its own, called New England Asset Management (NEAM)."

"IEFA tracks the MSCI EAFE IMI Index, thus giving you exposure to a broad basket of developed-market stocks outside the U.S. and Canada. It includes "first world" European countries, Japan, Australia, and Hong Kong, among others. Stocks in these countries have underperformed their U.S. counterparts earlier this decade as the USD gained significant value and even surpassed the Euro momentarily. However, the USD fell sharply last year and has been trading sideways. This has allowed stocks in other countries to play catch-up, especially with most countries loosening their monetary policies. IEFA has thus gained 25.6% over just the past year and is continuing to gain. It comes with a 3.48% dividend yield that is distributed twice a year. The expense ratio is just 0.07%, or $7 per $10,000."

"NEAM's third-largest holding is IEFA , at 6.37% of its portfolio. Holdings have been boosted by 35.2%."

Warren Buffett retains indirect exposure to several dividend-focused ETFs through Berkshire-owned New England Asset Management, including IEFA, VYM, and IDEV. Buffett remains Berkshire's Chairman and retains significant A-class shares with voting power. Berkshire owns operating businesses such as BNSF Railway and multiple insurance brands while NEAM maintains an ETF-oriented portfolio. IEFA tracks the MSCI EAFE IMI Index and provides developed-market exposure outside the U.S. and Canada, including European markets, Japan, Australia, and Hong Kong. IEFA gained 25.6% over the past year, offers a 3.48% dividend yield paid twice annually, and has a 0.07% expense ratio.

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