State of Tennessee, Department of Treasury

Key Holdings

The portfolio is heavily concentrated in top-tier technology giants, which dominate the upper echelons of the holdings list.

• NVIDIA (NVDA) remains the largest individual holding at $1.59 billion, representing 5.28% of the total portfolio. Despite a reduction of approximately $237.5 million this quarter, it maintains a significant lead over other positions.
• Microsoft (MSFT) and Apple (AAPL) follow as the second and third largest holdings, at $1.34 billion (4.47%) and $1.31 billion (4.38%), respectively.
• International Exposure via ETFs: Notably, the fourth largest position is the iShares MSCI Taiwan ETF (EWT) at $1.04 billion (3.46%). This indicates a strategic overweight in Taiwanese equities, likely driven by the semiconductor supply chain.
• The top 10 holdings account for roughly 28% of the total portfolio value, indicating a preference for liquidity and large-cap stability in the major positions while the tail of the portfolio provides diversification.

Sector Allocation

The portfolio exhibits a clear growth-oriented tilt with a heavy emphasis on the Technology sector.

• Technology is the dominant sector, totaling $5.40 billion (approximately 18% of the portfolio). This concentration is driven by positions in NVDA, MSFT, AAPL, AVGO, and ORCL.
• ETFs represent the second-largest "sector" allocation at $4.77 billion. Within this category, the treasury utilizes a mix of geographic (Taiwan, India, South Korea, Brazil), fixed income (Corporate, High Yield), and broad equity (Total Stock Market, S&P 500) funds.
• Communication Services ($1.63B) and Financial Services ($1.51B) are other significant weightings, supported by major positions in Meta, Alphabet, JPMorgan, and Berkshire Hathaway.
• Defensive sectors such as Healthcare ($613M) and Consumer Defensive ($511M) have smaller allocations, suggesting an aggressive stance favoring growth over value or defensiveness at this stage of the market cycle.