While these funds are heavily weighted in GE, they are not solely reliant on the company for their performance. On the contrary, although GE has struggled throughout this year, IYJ and XLI have still gained 23% and 20% in 2009 through Dec. 18.
GE is not the only similarity between these two funds. In fact, aside from differences in weighting, both instruments share the same 10 top holdings. Among these is another prominent Buffett play: BNI. This railroad is a minor holding accounting for 3% of XLI and 2% of IYJ.
In all, I feel that the strongest play on GE and Buffett is XLI. Because of their similarities, the decision largely comes down to the variations in expense ratios and size. In both of these categories, the SPDR fund comes out on top.XLI, which has nearly $2 billion assets under management, charges a 0.21% fee. That is considerably lower than IYJ, which charges 0.48%. The iShares fund has $273 million under management. While I would advise investors to go with XLI, either of these instruments would be an excellent way to follow Professor Buffett into the new year.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV