Calculation and mechanics
The weight of a position follows from its market value relative to the AUM or net assets of the fund.
In market-cap-weighted ETFs, a few very large companies can make up a substantial share of the fund. Equal-weighted or particularly broadly diversified funds spread the weight more evenly. The sum of the largest positions is therefore a simple measure of concentration.
A standardised public source for many US ETFs is the NPORT-P filing with the position list as of the respective public filing date. Provider websites often publish holdings more currently.
weight = market value of position / net assets x 100
Distinction
Holdings describe the contents of a fund, net assets its size. Two ETFs with similar AUM can hold completely different positions or the same securities in different weights.
Shared holdings can contribute to two ETFs moving similarly. How strong the actual co-movement is, the correlation matrix shows. In country ETFs, the concentration in a few large companies can be particularly high.
Sources
Related terms
- AUM (Assets under Management, net assets of a fund)
- NPORT-P (Form N-PORT, portfolio filing with the SEC)
- Correlation Matrix (30-day correlation)
- Country ETF (Single-country ETF)
- Grantor Trust (Commodity and crypto trusts such as GLD, SLV or IBIT)
All market and analytical information is provided for educational and analytical purposes only and does not constitute investment advice or a trading recommendation.