WisdomTree’s Growth ETF Puts 14% in NVIDIA and 31% in Just Six Stocks

Core Insights - The article emphasizes the importance of distinguishing between different types of growth, highlighting that not all growth is beneficial for investors [2] - WisdomTree U.S. Quality Growth Fund (QGRW) aims to identify companies that achieve profitable growth rather than just rapid revenue expansion [3] Fund Overview - QGRW was launched in December 2022 and has attracted $2.1 billion in assets, indicating strong investor interest in its quality-first approach [3] - The fund is heavily concentrated in the technology sector, with nearly 50% of its portfolio allocated to tech companies, including significant holdings in NVIDIA (14%), Alphabet, and Microsoft (17% combined) [4][7] Performance Metrics - Since its inception, QGRW has delivered 148% returns, significantly outperforming broader market benchmarks, showcasing the effectiveness of combining growth with quality metrics [5][7] - The fund gained 19% over the past year, demonstrating resilience during market volatility compared to many pure growth alternatives [5] Risk Factors - The fund's concentration in the semiconductor sector, which constitutes approximately 24% of its holdings, introduces concentration risk, particularly if demand for chips declines or competition increases [6][7]