Stock market index fund Buffett picked in a 10-year bet remains well ahead of hedge funds

Warren Buffett's bet that you're better off investing in a simple fund that tracks a stock index than in sophisticated and costly hedge funds appears to be a safe one.

Seven years into the 10-year wager, the index fund Buffett picked is trouncing the performance of a collection of hedge funds.

The latest standings in Buffett's bet with the money managers who own Protege Partners LLC were reported Tuesday by Fortune magazine. Buffett made the bet in 2008 to demonstrate how hefty fees can hurt investment returns.

The Vanguard S&P 500 Admiral index fund Buffett chose is up 63.5 percent since the bet began.

Protege picked five funds that bundle hedge funds. They were up roughly 19.6 percent.

A charity of the winner's choosing will receive at least $1 million.