OLD NATIONAL BANCORP /IN/

Key Holdings and Their Significance

• ONB (Old National Bancorp): $982.1M (16.80%).
  • This is an outsized, single-name concentration relative to total assets. Any performance or idiosyncratic event at ONB will materially affect portfolio returns and volatility.
• LLY (Eli Lilly & Co): $479.0M (8.19%).
  • A large, high-conviction healthcare holding and the second-largest position; provides sector diversification away from the banking concentration.
• Broad-market ETFs (VOO, SPY, IVV, SPYG, SPYV): combined ETF S&P/large-cap exposures total >$1.0B across the top ETF holdings, with VOO alone at $323.8M (5.54%).
  • These create a substantial passive/equity beta allocation and likely explain much of the portfolio’s equity market sensitivity.
• Technology and communication large caps (MSFT $172.9M, AAPL $169.3M, GOOGL $113.3M, META $56.6M, NVDA $23.4M):
  • Material individual positions but collectively are smaller than the ETF bucket; technology exposure is present both as direct stock stakes and via sector/index ETFs (e.g., XLK, SPYG).
• Fixed income and duration management via ETFs (VGIT $89.0M, AGG $74.2M, VCSH $30.6M, VCIT $27.2M, TLT $27.0M, VTEB $18.9M):
  • A diversified set of bond ETFs spanning short-term, intermediate, aggregate and long-duration (TLT) exposures, indicating an active use of ETFs for interest rate and credit-risk positioning.

Sector Allocation — Concentration and Tilts

• ETF: $1.59B (27.2% of portfolio) — largest “sector” bucket; dominates the portfolio’s passive beta exposure.
• Financial Services: $1.16B (19.8%) — the portfolio is meaningfully overweight financials relative to a typical broad-market benchmark (financials are usually ~10–13% of the S&P 500 historically). This overweight is driven by the very large ONB position plus holdings in Ally, Wells Fargo, Citi, JPM, BlackRock and others.
• Healthcare: $551.2M (9.4%) — a notable active overweight driven largely by Eli Lilly and positions such as AbbVie, Thermo Fisher, J&J.
• Technology: $421.6M (7.2%) — appears underweight relative to the market if ETFs are excluded; however, some technology exposure is embedded in broad and sector ETFs.
• Communication Services and Consumer Cyclical: smaller allocations at $212.2M (3.6%) and $131.1M (2.2%) respectively.
• The presence of multiple bond ETFs (short/intermediate/long and municipal) and significant ETF allocation signals a hybrid strategy using passive vehicles for market exposure and ETFs for portfolio risk management.