No single ETF consistently beats Berkshire Hathaway over all time periods

Berkshire Hathaway (ticker BRKB) is a holding company that owns dozens of businesses and holds a massive stock portfolio. When you own BRKB, you own a diversified collection of stocks, bonds, and cash managed by Warren Buffett and his team. An ETF that "performs better" would need to deliver higher returns over the same period — but performance changes depending on the year, the market conditions, and which ETF you compare it to.

The honest answer is that some ETFs beat BRKB in certain years, and BRKB beats them in others. There is no ETF that reliably outperforms Berkshire Hathaway across decades. If there were, professional investors would have already moved their money there, and the advantage would disappear.

What matters more than chasing past performance is understanding what you own and why. BRKB itself is a diversified holding — it already functions like an ETF. If you want something different from BRKB, you should choose it because the strategy fits your goals, not because last year's returns were higher.

Key Takeaways

  • Berkshire Hathaway's performance varies year to year against broad market ETFs, value-focused ETFs, and dividend-paying ETFs depending on market conditions.
  • A broad market ETF like VOO (Vanguard S&P 500) often beats BRKB when growth stocks are leading, but BRKB may outperform during value-focused market cycles.
  • Past performance does not predict future results — an ETF that beat BRKB last year may underperform next year.
  • BRKB itself is already a diversified portfolio, so comparing it to a single-strategy ETF is comparing two different approaches rather than finding a "better" investment.

How to compare BRKB to broad market ETFs

The most common comparison is between BRKB and a total stock market ETF or S&P 500 ETF. The S&P 500 ETF (VOO, IVV, or SPY) holds the 500 largest U.S. companies weighted by market value. Over the past 10 years, the S&P 500 has often outperformed BRKB because technology stocks — Apple, Microsoft, Nvidia — have driven returns, and Berkshire has held less exposure to those companies.

However, this comparison tells you something important: BRKB is not trying to match the S&P 500. Berkshire's managers actively choose which stocks to buy and hold, and they often avoid the most expensive companies. In years when value stocks outperform growth stocks, BRKB tends to do better than a broad market ETF.

If you want to know how BRKB performed against the market in a specific year, you can look up the annual returns on financial websites like Yahoo Finance or Morningstar. Type in BRKB and the ETF ticker (VOO, for example), and the site will show you side-by-side performance for any date range you choose.

Value-focused ETFs and their track record against BRKB

Some ETFs focus specifically on value stocks — companies trading at low prices relative to their earnings. Berkshire Hathaway is known for value investing, so value-focused ETFs are a closer comparison than a broad market fund. Examples include VTV (Vanguard Value ETF) and SCHV (Schwab U.S. Value ETF).

These ETFs sometimes beat BRKB and sometimes lag behind. The difference comes down to which specific value stocks each fund holds and how the market treats those stocks in a given year. A value ETF might own 300 different stocks, while Berkshire owns roughly 50 major holdings plus many smaller positions. Berkshire's concentrated bets can produce bigger wins or bigger losses than a diversified value ETF.

Value investing itself has underperformed growth investing for much of the past 15 years, which means both BRKB and value-focused ETFs have lagged behind the S&P 500 during that stretch. This is a market cycle, not a permanent condition.

Dividend-focused ETFs compared to Berkshire Hathaway

Berkshire Hathaway pays almost no dividend — the company reinvests its earnings into new investments. If you want regular income from your holdings, a dividend-focused ETF like VYM (Vanguard High Dividend Yield ETF) or SCHD (Schwab U.S. Dividend Equity ETF) will deliver cash payments several times per year, while BRKB will not.

This is not about one being "better" — it is about different goals. If you need income now, a dividend ETF serves that purpose and BRKB does not. If you want growth and do not need income, BRKB's approach of reinvesting all earnings may suit you better. The total return (price appreciation plus dividends) is what matters for long-term wealth building, and that varies by market conditions and time period.

Why past performance does not tell you which ETF to choose

Investment companies publish performance numbers prominently because they attract attention. An ETF that beat BRKB by 5 percent last year looks impressive in an advertisement. But that same ETF might underperform by 5 percent next year if market conditions shift.

The factors that made an ETF outperform in one period often reverse. If growth stocks led the market last year, value stocks might lead next year. If small-cap stocks beat large-cap stocks, the opposite might happen later. Chasing the best recent performer is a common mistake that costs investors money.

A better approach is to decide what kind of portfolio fits your situation — how much risk you can handle, how long you plan to hold the investment, and whether you need income. Then choose investments that match that plan, and stick with them through market ups and downs.

What makes Berkshire Hathaway different from most ETFs

Berkshire Hathaway is not an ETF — it is a publicly traded company. You own a piece of the company itself, not a fund that holds many companies. Berkshire owns entire businesses (like GEICO insurance and Duracell batteries), not just stocks. It also holds billions in cash and bonds.

This structure means BRKB behaves differently from an ETF. An ETF automatically rebalances to stay aligned with its strategy. Berkshire's managers make active decisions about when to buy, sell, and hold. They can move quickly into cash if they think stocks are too expensive, or they can hold a stock for decades if they believe in it.

Some investors prefer this active management approach. Others prefer the simplicity and lower costs of an ETF that follows a fixed rule. Neither is objectively "better" — they are different tools for different preferences.

How to track performance yourself

You do not need to rely on marketing materials to compare BRKB to an ETF. Financial websites let you pull up performance data for free. Go to Yahoo Finance, enter BRKB in the search box, and look at the "Performance" tab. You can see returns for the past week, month, year, 3 years, 5 years, 10 years, and since inception.

Then search for the ETF you want to compare — VOO, VTV, VYM, or any other ticker. Pull up its performance tab and compare the numbers for the same time periods. This shows you exactly how each investment performed, with no marketing spin.

Keep in mind that past performance is not a promise of future results. An ETF that beat BRKB over the past five years might underperform over the next five years. Use historical performance to understand how different strategies have behaved, not to predict what will happen next.

Frequently Asked Questions

Did the S&P 500 ETF beat Berkshire Hathaway recently?

Over the past 10 years, the S&P 500 has generally outperformed BRKB, largely because technology stocks drove market returns and Berkshire held less exposure to them. However, this varies by specific year and time period. Check Yahoo Finance or Morningstar to see the exact performance for any date range you want to examine.

Is Berkshire Hathaway better than an ETF?

BRKB and ETFs serve different purposes. BRKB is a company with active management and concentrated bets. An ETF is a fund that holds many securities and follows a fixed strategy. Neither is objectively better — it depends on your goals, risk tolerance, and preference for active versus passive management.

Why does Berkshire Hathaway underperform in some years?

Berkshire's strategy focuses on value stocks and avoiding expensive companies. When growth stocks and technology companies lead the market, value-focused strategies lag behind. This is a market cycle, not a permanent weakness. In years when value outperforms, BRKB often beats broad market ETFs.

Can I own both BRKB and an S&P 500 ETF?

Yes, many investors own both. BRKB gives you exposure to Berkshire's specific stock picks and active management. An S&P 500 ETF gives you broad market exposure. Together they can provide diversification, though there is some overlap since Berkshire holds many S&P 500 stocks.

What is the lowest-cost way to track Berkshire Hathaway's strategy?

Owning BRKB itself is the most direct way. If you want a value-focused ETF that follows a similar philosophy, VTV or SCHV are low-cost options, though they will not match BRKB's specific holdings or performance. The expense ratio for BRKB is around 0.12 percent annually, which is competitive with most ETFs.