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

"Most investors want growth. Fewer understand that not all growth is worth buying. Some companies expand revenue but burn cash. Others grow earnings but sacrifice margins. The best growth stocks do both while maintaining operational excellence. That distinction matters because it separates companies that compound wealth from those that simply ride momentum. WisdomTree U.S. Quality Growth Fund ( NYSEARCA:QGRW) exists to capture that specific type of growth."

"Built for Concentrated Tech Exposure QGRW is not a diversified fund. Technology dominates with nearly half the portfolio, creating concentrated exposure to the sector driving recent market returns. NVIDIA ( NASDAQ:NVDA) alone represents 14% of assets, with Alphabet ( NASDAQ:GOOGL) and Microsoft ( NASDAQ:MSFT) combining for another 17%. This top-heavy structure reflects a deliberate choice: quality growth at scale exists primarily in mega-cap technology companies with proven business models."

"The fund has delivered 148% returns since inception, substantially outpacing broader market benchmarks. This outperformance reflects the power of combining growth with quality metrics-companies that expand earnings while maintaining operational excellence tend to compound returns over time. The strategy has continued working recently, with QGRW gaining 19% over the past year as its quality-screened holdings navigated market volatility better than many pure growth alternatives."

QGRW identifies companies that grow profitably by screening for strong returns on equity and assets and sustained earnings expansion. Launched in December 2022, the fund amassed $2.1 billion by prioritizing quality growth rather than rapid top-line expansion. The portfolio is concentrated in technology, with nearly half of assets in the sector and top holdings including NVIDIA (14%), Alphabet and Microsoft (combined 17%). The strategy has produced 148% returns since inception and a 19% gain over the past year by focusing on earnings growth with operational excellence. Concentration in mega-cap tech creates notable single-stock and sector risk.

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