Vinik ETF Holdings & $1 Trillion In Assets

Dec 18, 2010 in Hedge Funds
Two interesting news items this week:

U.S. ETF assets broke through $1 Trillion in assets for the first time this past week. Global Head of ETF Research and Implementation Strategy at BlackRock Deborah Fuhr said in a press release:

“Increasingly both retail and institutional investors are building global, multi-asset portfolios that are designed to capture the performance of key ‘benchmarks’ for attractive market sectors -- an application for which ETFs and ETPs are particularly well suited,” Ms. Fuhr said. 

Dovetailing nicely with Ms. Fuhrs quote above --- there was a report late in the week that highlighted the extensive use of ETF's by former Fidelity Magellan portfolio manager and long-time hedge-fund manager Jeff Vinik.

As an institutional investor, Vinik must disclose holdings and his September 30, 2010 13-F from his SEC filing is summarized below:




Looking over Viniks holdings, the exposures are specific: U.S. sector tilts, U.S. Small Cap, and Emerging Markets exposure.  Note that SPY is the only of Viniks ETF holdings that is a diversified U.S. large cap index. 10 of the 11 other ETFs represent targeted exposures. 

In the grand scheme of things, $1 trillion in assets is still a drop in the bucket --- ETF/ETN assets are poised to head dramatically higher over the next 3-5 years. 


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Comments (5) -

Dec 25, 2010 00:54 #

hello, like your blog,Thanks for your sharing.  

place United States

Dec 25, 2010 07:27 #

Speaking of total holdings, I was surprised at how amazingly well a market-cap portfolio has done. I simply created a portfolio of the top 25 ETFs based on market cap (AGG, BND, DIA, EEM, EFA, EWZ, FXI, GDX, GLD, IJH, IVV, IWD, IWF, IWM, LQD, MDY, QQQQ, SHY, SLV, SPY, TIP, VTI, VWO, XLE, XLF). I used the default ETF Replay settings for Relative Strength, except I selected the top two ETFs. Running this from 2003 through Dec 23, 2010: CAGR = 26.8, Volatility = 17.1, MDD = -9.9. On a year-by-year basis we got: 2003=60.5, 2004=13.6, 2005=9.5, 2006=42.3, 2007=37.1, 2008=2.7, 2009=37.7, 2010=20.7

Jim United States

Feb 06, 2011 04:50 #

Jim, thanks for sharing this market-cap portfolio.

Come to think of it, it would be worthwhile to have a "forum" page somewhere on this site, where users could share their portfolios and discuss them. Chris, would you consider adding such a possibility? Thanks.

Paul Belgium

Mar 03, 2011 10:00 #

I second Paul's suggestion for a user forum...

Henry United States

Apr 18, 2011 17:42 #

Speaking of total holdings, I was surprised at how amazingly well a market-cap portfolio has done. I simply created a portfolio of the top 25 ETFs based on market cap (AGG, BND, DIA, EEM, EFA, E

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