Billionaire Ken Griffin’s Top ETF Picks
Ken Griffin, the billionaire founder of Citadel Advisors, has made a fortune through his savvy investment strategies. With a net worth of approximately $43 billion, Griffin’s portfolio is a closely watched indicator of market trends. While he is known for his individual stock picks, Griffin also invests heavily in exchange-traded funds (ETFs). In this article, we’ll explore two ETFs that Griffin is buying aggressively.
Griffin’s Largest Holding: SPDR S&P 500 ETF Trust
As of June 30, 2024, Citadel owned 5.6 million shares of the SPDR S&P 500 ETF Trust (NYSEMKT: SPY), valued at $3.05 billion. This represents a significant increase from the previous quarter, with Griffin adding approximately 2.03 million shares to his position. The SPDR S&P 500 ETF Trust is the largest ETF in the US, with assets under management (AUM) of $603.7 billion.
Why Griffin Loves the SPDR S&P 500 ETF Trust
So, why is Griffin so bullish on this ETF? One reason is its diversified portfolio, which tracks the performance of the S&P 500 Index. The ETF owns shares in the 500 largest US companies, including Apple, Microsoft, and Alphabet. Griffin is known for his emphasis on diversification, and this ETF provides an easy way to invest in a broad range of top-performing stocks.
Griffin’s Second-Largest Holding: Invesco QQQ Trust
Citadel’s second-largest holding is the Invesco QQQ Trust (NASDAQ: QQQ), with 3.3 million shares valued at $1.58 billion as of June 30, 2024. Griffin added approximately 2.82 million shares to his position in the second quarter, increasing his stake by nearly 585%. The Invesco QQQ Trust tracks the performance of the Nasdaq-100 Index, owning shares in the 100 largest stocks traded on the Nasdaq Stock Market.
Why Griffin Likes the Invesco QQQ Trust
Griffin likely favors the Invesco QQQ Trust for the same reasons he likes the SPDR S&P 500 ETF Trust. The ETF provides a simple way to invest in a large basket of top-performing stocks, with a strong track record of outperformance. The Invesco QQQ Trust has been ranked as the best-performing large-cap growth fund over the past 15 years, based on total return.
Valuation Concerns
One potential concern with both ETFs is valuation. The stocks owned by the SPDR ETF trade at an average price-to-earnings ratio of 28.1, while the average earnings multiple for stocks owned by the Invesco ETF is even higher at 37.7. However, Griffin’s long-term investment horizon and emphasis on diversification suggest that he is willing to look beyond short-term valuation concerns.
Conclusion
In conclusion, Ken Griffin’s top ETF picks offer insights into his investment strategy and market outlook. Both the SPDR S&P 500 ETF Trust and the Invesco QQQ Trust provide diversified exposure to top-performing stocks, with strong track records of outperformance. While valuation concerns may be a consideration, Griffin’s long-term approach and emphasis on diversification make these ETFs attractive options for investors seeking to replicate his success.
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