Here Are 6 ETFs Bill Gates Might Endorse for Everyday Investors

Bill Gates, through the Bill & Melinda Gates Foundation Trust, showcases an investment philosophy rooted in stability, quality, and long-term value. The Trust’s $41.8 billion portfolio emphasizes companies with strong fundamentals, recurring revenue, and alignment with sustainable and socially responsible principles. 

Naturally, Microsoft (NASDAQ:MSFT) is a large holding (it represents more than 25% of the portfolio), as is Warren Buffett’s Berkshire Hathaway (NYSE:BRK-A)(NYSE:BRK-B) (it representss almost 22% of the total). Yet Gates’ focus is still on technology, industrials, and global challenges like climate change and health. It suggests a preference for diversified, high-quality investments that balance growth with resilience. 

While Gates hasn’t publicly endorsed specific exchange-traded funds (ETFs), his Trust’s holdings and public commitments provide clues to ETFs that might align with his approach. Below are six ETFs that he might recommend for you to buy.

iShares U.S. Technology ETF (IYW)

The iShares U.S. Technology ETF (NYSEARCA:IYW) aligns closely with Gates’ deep roots in technology. As a co-founder of a major tech giant, Gates has consistently prioritized innovation-driven companies. The Trust’s significant investment in technology, including its purchase of IYW in 2023, underscores this focus. 

This ETF tracks a broad range of U.S. tech firms, offering exposure to software, hardware, and IT services — sectors that drive economic progress. With an expense ratio of 0.39% and a strong historical performance, IYW appeals to Gates’ preference for companies with robust growth potential and enduring market leadership, making it a compelling choice for investors seeking tech-driven returns.

Industrial Select Sector SPDR Fund (XLI)

The Industrial Select Sector SPDR Fund (NYSEARCA:XLI) reflects Gates’ confidence in the industrial sector’s role in economic stability. The Trust holds significant stakes in industrial companies, indicating a belief in firms that support infrastructure and essential services. 

XLI provides diversified exposure to manufacturers, railroads, and machinery companies, sectors that align with Gates’ investments in resilient, capital-intensive businesses. Its low expense ratio of 0.09% and consistent returns make it attractive for everyday investors. 

By investing in industries that underpin global economies, XLI mirrors Gates’ focus on steady, foundational growth, offering stability alongside moderate growth potential.

iShares Global Clean Energy ETF (ICLN)

Sustainability is a cornerstone of Gates’ public mission, and the iShares Global Clean Energy ETF (NASDAQ:ICLN) captures this commitment. Through ventures like Breakthrough Energy, Gates champions renewable energy to combat climate change. 

ICLN invests in solar, wind, and energy storage companies worldwide, aligning with his vision for a greener future. Despite a higher expense ratio of 0.41%, its focus on clean energy resonates with Gates’ advocacy for innovative solutions to global challenges. 

For investors, ICLN offers exposure to a high-growth sector, balancing environmental impact with the potential for long-term returns, a dual focus Gates likely values.

Vanguard ESG U.S. Stock ETF (ESGV)

The Vanguard ESG U.S. Stock ETF (CBOE:ESGV) appeals to Gates’ values-driven investing approach. The Trust avoids companies with harmful practices, prioritizing those with positive societal impact. 

ESGV screens U.S. companies for environmental, social, and governance (ESG) criteria, including tech and industrial leaders that overlap with the Trust’s holdings. With a low expense ratio of 0.09%, ESGV provides broad market exposure while aligning with Gates’ philanthropic goals of addressing global inequities. 

This ETF suits investors seeking diversified growth without compromising ethical considerations, reflecting Gates’ blend of financial pragmatism and social responsibility.

SPDR S&P Dividend ETF (SDY)

The SPDR S&P Dividend ETF (NYSEARCA:SDY) caters to Gates’ preference for companies with consistent cash flows. The Trust’s holdings in dividend-paying firms suggest an appreciation for stable, income-generating investments. 

SDY focuses on companies with a history of dividend growth, spanning industrials, utilities, and consumer goods — sectors that provide reliability. With an expense ratio of 0.35% and a dividend yield around 2.5%, SDY offers steady income and moderate growth, appealing to Gates’ focus on long-term financial stability. 

For everyday investors, this ETF provides a low-risk way to build wealth through dependable returns.

iShares MSCI USA Quality Factor ETF (QUAL)

The iShares MSCI USA Quality Factor ETF (CBOE:QUAL) embodies Gates’ emphasis on high-quality investments. The Trust’s portfolio prioritizes companies with strong balance sheets, high return on equity, and low debt — traits QUAL targets in its selection of U.S. firms. 

This ETF includes sectors like technology and industrials, overlapping with the Trust’s core holdings, and boasts a low expense ratio of 0.15%. Its focus on financially sound companies aligns with Gates’ strategy of investing in businesses that can weather economic volatility while delivering consistent performance, making it ideal for investors seeking quality and resilience.

Key Takeaway

These six ETFs — spanning technology, industrials, clean energy, ESG-focused stocks, dividends, and quality companies — reflect the principles guiding the Bill & Melinda Gates Foundation Trust. They offer everyday investors a way to emulate Gates’ focus on innovation, stability, and societal impact while maintaining diversification and accessibility.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.