Dave Barnhart shows how to analyze ETF holdings, sector weightings, and asset allocation to anticipate price moves. Look up a stock like Amazon to find which ETFs hold it, or spot large block trades in funds like VOO to see upcoming pressure. Use this data to trade sector ETFs instead of individual stocks and avoid over-concentration in your portfolio.
Chapters
Hi there. In this video, we're going to look at our ETF feature. Now, this is a dual-purpose feature because we can do several things. One of the things is we can look up an individual ETF and see what the list of the components are, not only the top 10 holdings, but also every holding in the ticker. The other thing that we can do is look up an individual stock, for example, say AMD, and see what ETFs are holding that, and that's quite important. So let's go ahead and look at that first. Let's pick, for example, QQQ. I'm going to put in QQQ, and then here by default we see our top 10 holdings. We can look at the table here and it says Apple is 8.7% of the Q's with $25 billion. Then we have Microsoft at 8% with $24 billion. Then Nvidia, AVGO, Amazon, Meta, Tesla, Costco, and Google. So these are the top 10 holdings by asset within the QQQ. The benefit of knowing this sort of information is if there was going to be a big move on Apple, you might see large trades coming in on the QQQ or the sector in general that has to do with this technology. Since the QQQ is related to the NASDAQ. If we hover over our donut chart here, we can see that Microsoft is 8%. Here we have Nvidia, then we have AVGO, Amazon, Meta, and these other ones that are here. Now, since this is the top 10, we also have a list of all of the holdings sorted by highest asset. So we can scroll down and see all of the ones that are there. So other than This ending in Google, we've got Netflix, AMD, T-Mobile, Pepsi, Adobe, Cisco, Qualcomm, Texan, and you can see the values here: nine billion, seven billion. And so, if there's going to be a move in the QQQ, you would expect that these stocks would actually move with it because they're directly related, correlated heavily with the QQQ. Now we also have another tab here called Sector Weight. And what this actually means is we have the sector, you know, we— there's, there's 11 sectors, and then we have an equity percent and relative to category. So the equity percent means in the QQQ, 1.5% is materials, 13% is consumer cyclicals, half a percent in finance— financials, 51% down here in technology. And then we've got a little bit of healthcare and a little bit of utilities. This relative to category means of the other ETFs that are in the same sector, how is the QQQ different from the other ones? So if we look at this, other ETFs are a little bit heavier weighted in consumer cyclicals, and they're much heavier weighted in financials. So we can see here that the Q's are only half of a percent in financial services, but The other components of the category relatively are 8%, so that's a big difference. So if you're trying to compare apples to apples or subtle differences between the ETFs, that's a good way to actually do it. We can also look at the asset allocation, and what this means here is that it's long 96.98% of the value of the QQQ is US stocks. 2% is non-US stocks and 0.17% is cash. It's got no short holdings. There are some ETFs that do take long and short positions as well. And then that's the percentage of the net asset there. Okay. So if, for example, we'll go back to the top 10 holdings. Say we wanted to look up a specific ticker. So what I'm going to do here is if we wanted to look at, say, Amazon here, then we could put in Amazon, we could search for the ticker, and then this tells us what are the top 10 ETFs that hold Amazon. And the SPY is the biggest with $21 billion and 3%. Then we have IVV VOO, which is $18 billion, 3.4%. And then the list goes, goes on. We can scroll down and see here that IWF is another ETF that has $6 billion in it. Now, if we were to trade Amazon, for example, XLY here, this one, 22% of the value of XLY is Amazon. So if, for example, you wanted to put on a trade for Amazon into earnings and you wanted to maybe avoid some volatility in, say, purchasing options, something like that, you might see that XLY might be a better trade or a lower risk trade than trading Amazon directly into earnings. Let's look at something else. Recently, a giant trade took came into another ETF called VOO. So if we go to our print lookup and we look up VOO, I'm going to set this to 400,000, and then we see here that there's a large trade on September 20th, $523.47 for 1.8 million shares. You can see that here on the chart. It automatically added it because it's one of the largest trades in the last year. So now we see that it's consolidating a little bit, and for the last week and a half we've been right at that level. So there is a move coming. So now what we can do is we know that there's gonna be a big move in VOO, and we can do some sort of technical analysis on it if we like, look at the other prints. And then if we have a trade mapped out on VOO, bullish or bearish, we can go back And look at our other trades. So let's go back ETFs and let's put in VOO. Now looking at VOO, the top ten holdings: Apple, Microsoft, Nvidia, Amazon, Meta, Google, Berkshire Hathaway, the other Google stock, Eli Lilly, and AVGO. So if this ETF is going to have a big move. Then these stocks will have a big move as well. We can also see the top holdings. There's JP Morgan, Tesla, UnitedHealth, ExxonMobil, Visa, Procter Gamble, Johnson Johnson, right? Mastercard. All of these stocks have the potential to move in the direction of this ETF. So when we're looking at large block trades, you'll see some large block trades that might come in Just on rare ETFs, for example, or large ones. So I'm not sure how many people have heard of IVV or VOO, some of these other ones where you would just have to look it up and say, I have no idea what that is. Then you can see what the underlying stocks are, and then you can anticipate a trade. Some of these other vehicles, these ETFs, aren't very good to trade when it comes to options and things like that, but that gives us an opportunity to to look for another trade and know that a big move is actually coming and we can be ready for it, whether it's a move up or a move down. If you're holding stocks long-term or ETFs long-term, you can also check your exposure. Because if you're holding Apple stock, but then you're heavy in the Q's or the SPY, you might be overexposed if Apple actually goes down. So being aware of those sorts of things, you can balance your own portfolio by seeing what these components are. Thanks for watching, and we'll see you in the next video.
