The Vanguard Growth ETF, which holds $220 billion in assets, now has its 10 largest holdings accounting for about 60% of the fund. Nvidia is the largest position at 12.6%, followed by Apple at 11.7%, meaning the top two stocks alone make up roughly 24% of the 147-stock portfolio. Microsoft is next at 7.6%, Alphabet's two share classes combine for 10.3%, Amazon at 4.5%, Broadcom at 4.3%, Meta Platforms at 3.4%, Tesla at 3.3%, and Eli Lilly at 2.8%. The fund tracks the CRSP US Large Cap Growth Index, which weights companies by free-float-adjusted market value, so the concentration reflects the market's own winners growing into larger weights. In 2022, when richly valued growth stocks fell, the fund lost 33.1%, and investors should be prepared for similar drawdowns if the AI trade cracks.
Apple Inc.
Amazon.com Inc
Broadcom Inc
Alphabet Inc Class C
Microsoft Corporation
NVIDIA Corporation
Eli Lilly and Company
Meta Platforms Inc.
Tesla Inc