§ 01
If you own both QQQ and XLK, you are doubling up on Apple and Microsoft. Both ETFs hold these as their top positions. This overlap increases your concentration risk.
§ 02
| ETF | Top Holding | Top 10 Weight | Total Holdings |
|---|---|---|---|
| SPY (S&P 500) | Apple ~7% | ~30% | ~500 |
| QQQ (Nasdaq 100) | Apple ~9% | ~50% | ~100 |
| VTI (Total Market) | Apple ~6% | ~25% | ~3,700 |
| XLK (Tech Sector) | Apple ~20% | ~65% | ~65 |
§ 03
Look up any ETF and examine its **top 10 holdings** and sector breakdown. What percentage does the top holding represent?
§ 04
§ 05
A 'Total US Market' ETF holds 3,000+ stocks but the top 10 positions are 30% of weight. Is this ETF actually diversified?
Five questions · AI feedback
Sit with the ideas.
An ETF's top holding is 22% of the fund. What risk does this create?
Why: