Karnit Road Fund Portfolio Concentration Analysis: Heavy Exposure in S&P 500 ETFs

As of June 30, 2026, the Karnit Road Accident Victims Compensation Fund holds a substantial portfolio valued at approximately $175.98 million.

This analysis focuses on the fund's portfolio concentration by examining its largest holdings and overall sector allocation based on available data.

Top Holdings Analysis

The fund's most significant positions are dominated by exchange-traded funds (ETFs) tracking major US indices, reflecting a concentrated approach focused primarily on domestic equities. The top holding is SPY with a weight of 57.96%, representing the State Street S&P 500 ETF (SPY). This massive allocation suggests that a large portion of the fund's assets are invested in this broad market benchmark.

The second largest holding is VOO with a weight of 32.15%, corresponding to the Vanguard S&P 500 ETF (VOO). This further emphasizes exposure heavily concentrated within large-cap US stocks, mirroring SPY's focus but managed by a different provider.

Together, these two holdings account for nearly the entire portfolio allocation at 90.11% ($160 million). Other substantial positions include DXJ (WisdomTree China Daily Index Fund Shares), FEZ (SPDR S&P Chinese Large Cap Fund), and XSOE (WisdomTree China Small-Cap A-Share ETF). These allocations, while smaller than SPY and VOO, still represent significant diversification efforts within the fund's structure.

Significant Changes in Holdings

The data also reveals notable changes between periods for several key holdings. The largest holding, SPY, saw a decrease of 10.12% or -15,379 shares from the previous period. Similarly, VOO experienced an 12.37% reduction (-11,630 shares). These decreases could be due to various factors like market performance adjustments or fund policy changes.

Conversely, FEZ showed a positive change of +1.74% (or +760 shares) during the period, indicating potential growth in this specific position despite its small overall weight. The VWO holding also increased slightly by 3.23%, adding 1,200 shares.

EPP saw a modest increase of 5.01% (940 shares added), while other holdings like HEDJ and XLV remained unchanged in terms of percentage allocation from the prior period.

Overall Portfolio Diversification

The fund holds a total of 17 distinct positions, as indicated by the holding_count metric. This suggests that diversification is not extremely broad but rather focused on specific types of investments within the US market.

The top five holdings collectively represent approximately 95.05% ($168 million) of the total portfolio value. This high concentration level means that performance in these large ETFs will have a significant impact on the overall fund's returns, regardless of changes in their individual weights over time.

While there are other holdings like DXJ and XSOE which add some international exposure to Asia-Pacific markets (excluding Japan), they still fall short of diversifying away from the heavy reliance on US large-cap stocks represented by SPY and VOO. The fund's allocation strategy appears heavily tilted towards these specific vehicles.

Sector Allocation

According to the sector_allocations data, all holdings are categorized under "Unknown" for sector classification purposes. This means that while the top holdings by weight (SPY and VOO) represent exposure across various sectors within their index, the fund's specific allocations haven't been broken down into individual sector percentages.

The portfolio_indicators show a position_change_count of 5, indicating activity in several positions during the period. However, there are no indications of large-scale buying or selling activities ("has_large_buys": false, "has_large_sells": false) based on the provided data points.