In this December 3rd update, Mike walks through the latest data trends found after updating the ETF Action category data packs. The standout metric this month is the extreme concentration levels found within the US Large Cap Growth category.
Key Insights:
- The “50%” Threshold: On average, funds in the US Large Cap Growth category now hold over 50% of their weight in just their top 10 names.
- Market Cap Dominance: Using the Navigator tool, the video demonstrates that of the $1.24 trillion in this category, $1.1 trillion is in market-cap-weighted strategies. This structure naturally pushes the largest names (the “Mag 7”) to dominate the fund allocations.
- The “Nvidia Factor”: Using the ETF Stock Screener, Mike reveals that Nvidia alone accounts for a massive portion of the category, held in 129 out of 145 ETFs with an average weight of nearly 11%.
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⏱️ Video Timeline
0:00 — Intro & Data Pack Updates Mike announces the December 3rd update of all ETF Action category data packs and analytics across 100+ categories.
0:26 — The Trend: 50% Concentration Mike highlights the key finding: The average weighting of the top 10 securities in US Large Cap Growth ETFs has crossed the 50% threshold.
1:09 — Navigator Tool Demo: Asset Breakdown A walkthrough of the Member Access Platform. Mike uses the Navigator tool to filter for US Large Cap Growth and analyzes the “Implementation” field to show that nearly all assets are in market-cap-weighted strategies (like QQQ, VUG, IWF).
3:02 — Stock Screener Demo: Underlying Holdings Mike switches to the ETF Stock Screener to look “under the hood.” He loads ownership data for 145 funds to see exactly which stocks are driving the concentration.
4:42 — The Data: Nvidia, Apple, and Microsoft A deep dive into the specific numbers.
- Nvidia: 10.9% total weight across the category.
- Top 10 Names: Aggregate ownership of ~$750 billion out of the $1.2 trillion total AUM.
5:49 — Summary & Key Takeaways Final thoughts on how the market cap-weighting nature of the current market creates this extreme concentration, and how to use the platform tools to monitor it.
Disclosures
This material is for informational purposes only and should not be considered investment advice. All investments, including ETFs, involve risk, including the possible loss of principal. Investors should consider their investment objectives, risks, charges, and expenses carefully before investing.
This analysis was developed by the team at ETF Action. We leverage advanced AI tools to assist in the drafting and refinement of our content, based on our expert prompts, direction, and final review.
