This has been a successful strategy.

In 2024, the S&P 500 Index (SP: INX) rose by 23.31% and delivered total returns (including dividends) of 25.02%.

The ASX 200 delivered a healthy but inferior total gross return of 11.44%.

So, it's not surprising that many Aussie investors who have been proactively buying the dip of late have targeted US shares.

Top 10 most traded US shares

New data from online trading platform Stake provides insights into exactly which US shares are on investors' radars most.

The following table shows the 10 most traded US shares on the Stake platform on Monday, 7 April.

That was when we saw the biggest market dip on the ASX last week, with the ASX 200 falling 4.23%. 

That was preceded by one of the biggest falls on the US stock market since the COVID-19 pandemic began in 2020.

On Friday, 4 April, the S&P 500 fell 5.97%.

Largest volume of US stock trades in more than a year

Stake's markets analyst, Samy Sriram, said the volume of total trades of US shares on the Stake Wall St platform was the largest in more than a year on Monday.

Sriram commented:

A large cohort of retail investors saw an opportunity to 'buy the dip,' with the magnificent seven cohort and US index tracking ETFs like VOO seeing significant trading volume.

Sriram said Apple stock saw "the most meaningful increase in buy orders" among Australian investors on Monday.

That may have been because Apple shares were crushed during the US trading sessions on 3 April and 4 April, dropping by 15.86%.

As the table shows, the top 10 US shares traded on Monday had a heavy leaning to the buy side.

This indicates more investors were proactively buying the dip.

However, Sriram noted that sell orders on Tesla shares on Monday were higher than average at 30% of its trades.

This may indicate that some longer-term Tesla investors decided to take their capital gains and run after a difficult period for the stock.

Tesla shares are down 37.5% in the year to date.

Many investors have felt concerned that Tesla CEO, Elon Musk, is too distracted by his new role with the Department of Government Efficiency (DOGE), and this may become detrimental to his EV company.

Interested in ASX shares?

Find out the 10 most popular ASX stocks that Aussie investors are targeting during this market volatility.

The post Which US shares are Aussie investors buying most during this market volatility? appeared first on The Motley Fool Australia.

Warren Buffett isn't called "the Oracle of Omaha" for nothing. The billionaire has proven his knowledge of the stock market over time, and as a result, Berkshire Hathaway has delivered market-beating performance over 58 years. As chairman, Buffett has helped the holding company generate a compounded annual gain of more than 19% over that time period -- that's compared with about a 10% such increase for the S&P 500.

So, it's clear Buffett generally has made the right decisions at the right times. This often involves going against the current market trends. In the past, this top investor wrote he and his team "attempt to be fearful when others are greedy and to be greedy only when others are fearful."

And it's possible this is what is happening right now. As the S&P 500 climbs, after already completing two years of double-digit gains, and investors pile into high-growth stocks such as artificial intelligence and quantum computing players, Buffett just made a shocking move -- and one that could be seen as a warning to investors. Does this famous investor know something Wall Street doesn't? Let's find out.

A glimpse at the investing moves of experts

Friday was a big day for investors and the stock market in general as it offered them a glimpse into the latest moves of investing experts. Managers of more than $100 million in stocks must file form 13F with the Securities and Exchange Commission, detailing their latest buys and sells, on a quarterly basis. And that form was due this past Friday, February 14.

It would be impossible to follow every move of every billionaire investor, but taking a look at these experts' latest moves could inspire us to make certain decisions that suit our investment strategies -- or offer us a clue about what may happen next in the market. And considering Warren Buffett's excellent long-term track record, it's a fantastic idea to turn to him first.

Before we talk about Buffett's surprising move in the fourth quarter of 2024, though, it's important to quickly discuss his general views on investing. The billionaire is known for value investing, meaning he aims to scoop up shares of companies that are trading for bargain valuations now -- but have what it takes to advance over time. Buffett also has a strong belief that solid American companies will win over the long run, and to gain exposure to these players, he's recommended that non-professional investors add a good S&P 500 Index fund to their holdings.

Buffett's shocking move

Buffett himself has held two -- the SPDR S&P 500 ETF Trust (NYSEMKT: SPY) and the Vanguard S&P 500 ETF (NYSEMKT: VOO) -- since the fourth quarter of 2019. But in a shocking move, Buffett in the recent quarter closed out both of these positions.

These funds, mimicking the composition of the S&P 500, offer investors exposure to the benchmark, so they will win or lose according to how the S&P 500 performs. The past two years, as mentioned, have been winning ones. Over time, the S&P hasn't delivered as much of a gain as Buffett's portfolio of carefully chosen stocks, but the index still has been a successful investment.

Today the S&P 500 continues to climb in this bull market, yet Buffett has sold these assets that offer exposure to the index's performance. Does this mean Buffett knows something Wall Street doesn't -- and thinks the index may be heading for a correction?

The market's "casino-like behavior"

We don't know exactly why Buffett made the move, but some may consider this as a warning about the possibility of declines to come. In his most recent shareholder letter, Buffett commented on the "casino-like behavior" in the market. And, knowing Buffett's affinity for value, he's surely noticed the S&P 500 is trading at one of its most expensive levels since it launched as a 500-company index back in the late 1950s. The Shiller CAPE ratio, an inflation-adjusted measure of a company's earnings-per-share and stock price, has reached beyond 35 -- something it's done only twice before.

S&P 500 Shiller CAPE Ratio data by YCharts

So, Buffett may have decided to lock in profits ahead of any potential correction and allocate the funds to individual stocks -- he bought one new stock, Constellation Brands, and added to five positions in the quarter.

Still, Buffett's past comments highlight his belief in the S&P 500's value as a long-term investment and the strengths of American companies. In his 2013 letter to shareholders, he said that in his will he's advised a trustee to put 90% of his cash in an S&P 500 Index fund to benefit his wife.

He also wrote: "American business has done wonderfully over time and will continue to do so."

Now the next question is: What does this mean for you as an investor? Of course, it's impossible for any investor -- even Buffett -- to predict with 100% accuracy what the index will do next. So his decision -- or his team's decision -- to sell the S&P 500 index funds doesn't mean you should stay away from these funds or stocks in general. Instead, it highlights the importance of considering valuations and holding onto quality investments for the long haul. After all, even if the S&P 500 falls in the near future, it's likely to deliver a long-term win for you as it's done for many other investors, including Buffett, throughout its history.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Does Warren Buffett know something Wall Street doesn't? He just made a shocking move that could be a warning for investors appeared first on The Motley Fool Australia.

Buffett's only index funds

How they can make you money

The goal of the non-professional [investor] should not be to pick winners -- neither he nor his "helpers" [professional investment managers] can do that -- but should rather be to own a cross-section of businesses that in aggregate are bound to do well. A low-cost S&P 500 index fund will achieve this goal.

The timing is good

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post The only 2 index funds in Warren Buffett's portfolio — and how they could make you money appeared first on The Motley Fool Australia.

With the market down substantially from its all-time highs, the benefits of dollar-cost averaging into a low-cost, broad-based stock index fund are becoming quite clear. By making regular investments every payday in this market, each dollar you're investing buys that many more shares while stocks are down. That may not seem like much benefit now, but it means you've got that many more shares available to compound in any recovery that follows.

It's with that backdrop that making regular investments in the SPDR S&P 500 ETF Trust (NYSEMKT: SPY) starting now could make you a millionaire retiree. It's a process that takes time no matter what the market is doing, which is a great reason to consider starting those investments now, even if the market continues to fall.

Why invest in the SPDR S&P 500 ETF Trust?

The SPDR S&P 500 ETF Trust is a low-cost index ETF that attempts to track the S&P 500 index, which is often used as a proxy for the overall US stock market. With itd expense ratio of 0.09%, investors in that ETF can get returns that nearly perfectly match that index, while losing almost nothing to fund management fees.

That combination of stock market like returns with very low internal costs makes the SPDR S&P 500 ETF trust a simple, one-stop shop for investors. It's especially potent for investors who don't want or are otherwise unable to put a lot of time and effort into digging through financial reports to pick individual stocks. When you add the fact that index investing tends to beat funds managed by Wall Street's best and brightest over time, the SPDR S&P 500 ETF Trust become an even more compelling option.

How long will it take to become a millionaire?

The path from $0 to $1 million depends heavily on two key factors: how much you're able to invest every month and what rate of return you earn along the way. The good news is that if you've got a long enough time horizon, reaching millionaire status by retirement age is feasible, even for people with modest incomes.

The following table shows how many years it takes to reach that millionaire status, depending on what you can save each month and what annual rate of return you earn along the way.

Data source: author.

The top end of that savings rate -- $2,200 per month -- represents a savings rate that can be contributed to tax-advantaged, retirement-focused accounts for most people. Workers under age 50 can generally contribute up to $20,500 per year in a company-sponsored retirement plan like a 401(k). They can also typically sock away up to $6,000 per year in their own IRA.  (The contribution limits are even higher for workers ages 50 and up. )

The bottom end of that savings rate -- $300 per month -- works out to around $10 per day. Even at that savings level, as long as you invest consistently throughout the length of a typical working career, you've got a decent shot at reaching millionaire status by the time you retire.

Get started now

Regardless of where you are in your career, you'll never again have more time before you retire than you do right now. That makes today a great day to get your plan in place. The sooner you get started, the more of the cells in that table will be within your reach, improving your chances of retiring a millionaire.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Investing in this ETF right now could make you a millionaire retiree appeared first on The Motley Fool Australia.