Fifth Third Bancorp 13F Portfolio

Rising conviction is concentrated in three themes: U.S. large-cap growth as a style, non-U.S. developed markets, and the less glamorous infrastructure of AI.

• IWF: The iShares Russell 1000 Growth ETF is the statement trade. Shares are up 284.3%, lifting the position to $469.5M. That is a $347.3M dollar add into a vehicle currently showing a -56.9% mark versus their own average entry, implying they are averaging up into growth factor exposure after a drawdown, not bailing on it. They’re essentially recreating a growth sleeve on top of the existing megacap winners.

• IVV and IJH: Core U.S. beta is getting reinforced. IVV saw a $304.7M add (shares up 14.4%), taking it to 3.93% of the book, while IJH — mid-cap exposure — is up 10.1% in shares, adding $57.5M. That looks like a deliberate barbell: keep the top-heavy tech winners, then own the market and mid-cap breadth underneath.

• IEFA and IEMG: Ex-U.S. is no longer an afterthought. IEFA, a developed ex-U.S. ETF, gets a 39.7% share boost and $206.2M more capital, while IEMG, the emerging-markets sleeve, sees shares up 4.4% and $21.5M added. Together with EFA and VEA, Fifth Third is underwriting a real international leg to the portfolio.

• AMAT and the AI supply chain: Applied Materials stands out among single stocks. Shares are up 17.4%, a $80.7M add, even as Nvidia, Broadcom, and Micron are being shaved. That suggests a belief that the capex and equipment layer of AI has more runway — the age of AI "plumbing" rather than just GPUs.

• Small/mid factor build-out: SMMD and IJR both see meaningful adds — 13.8% and 5.1% more shares respectively, together adding over $63.0M. Fifth Third is clearly using targeted index products to express a cyclical and small/mid-cap catch-up thesis rather than try to pick individual winners one by one.

On the sell side, this quarter is about harvesting gains from crowded winners and reallocating from expensive idiosyncratic risk into cheaper, broader expressions of the same ideas.

• LLY: Eli Lilly is the biggest single-name trim by dollars — a $255.1M reduction with shares cut 10.8%. The GLP-1 trade has been a monster, but with the position still 3.41% of the book and up 45.1% versus their cost, this looks like classic risk budgeting in a name whose story is now consensus.

• AI megacaps: Nvidia, Apple, Microsoft, Alphabet (both share classes), Meta, Broadcom, and Micron are all modestly reduced — typically low- to mid-single-digit percentage cuts in shares. These are measured trims, not thesis reversals. With enormous embedded gains (Nvidia at +304.5%, Broadcom at +276.7%, Micron at +419.5% vs their average buys), they’re effectively turning stock-picking alpha into dry powder for factor and ETF exposure.

• Legacy tech and payments: Cisco gets a harsher treatment with shares down 10.6% and $47.7M pulled, a sign they see better risk/reward in higher-octane AI or in diversified beta. Visa and Mastercard are incrementally reduced as well, despite strong gains, which suggests a broader de-emphasis on single-name payment rails in favor of owning the consumer and growth factor through ETFs.

• S&P wrappers: SPY, VOO, IWB, and IWD are trimmed even as IVV is boosted. That is a consolidation trade — they are simplifying S&P and large-cap beta into a smaller number of vehicles, likely for cost and tracking reasons, while keeping overall U.S. large-cap exposure intact.

• Health-care balance: In addition to Lilly, both AbbVie and Johnson & Johnson see small reductions. Combined with the Lilly trim, healthcare’s weight drifts down, signalling a view that the sector has moved from mispriced to fairly — or even richly — valued relative to global growth opportunities.

The sector chart understates what’s really happening: nominal sector weights barely move, but the way Fifth Third holds those exposures is being re-wired.

Technology edges down only slightly, from 39.09% to 38.14%, yet beneath that veneer they are swapping some single-name risk into ecosystem and equipment plays (AMAT, TXN up 4.3%) and layering on growth-factor beta via IWF. That keeps them levered to AI and software without overconcentrating in a few narrative darlings.

Unclassified exposure — almost entirely broad ETFs and index products — jumps from 27.94% to 30.39%. That’s effectively the fund outsourcing more of its sector mix to the benchmark and to style indices, while reserving stock selection for high-conviction names like Nvidia, Lilly, and select industrials.

Healthcare slips from 9.77% to 8.94% as Lilly, AbbVie, and J&J are scaled back. Consumer and financials weights — via Amazon, Home Depot, Walmart, Procter & Gamble, big banks, and brokers — are almost unchanged, but again more of that risk now flows through multi-asset ETFs rather than one-off positions.

Energy, industrials, and payments (classified here under "Real Estate" but economically financial/consumer) see only fractional decreases. The message is subtle: this is not a top-down macro bet; it’s a risk-structure shift inside roughly the same sector mix.

Taken together, these moves describe a manager that has already monetized a historic tech and AI run and is now institutionalizing those gains into a more systematic book.

The aggressive build in IWF and the reinforcement of IVV, IJH, IEFA, and IEMG say they want continued equity beta — and particularly growth and non-U.S. beta — but with less dependency on any single stock. When a portfolio with a 23.06% 3-year annualized return starts swapping flagship positions for factor sleeves, it’s usually about durability, not fear.

At the same time, they are not giving up on AI or U.S. growth leadership. Adds to Applied Materials and modest top-ups to Texas Instruments indicate they see a second leg in the hardware and capex cycle, even if GPUs and cloud platforms are more fully priced.

Healthcare de-risking — led by the Lilly trim — implies an internal view that the GLP-1 wave and big pharma rerating are well advanced. The freed capital is being re-assigned to where dispersion is higher: small/mid caps, ex-U.S. equities, and growth factor indices.

Going forward, expect Fifth Third to look less like a classic stock-picking bank portfolio and more like an architect of exposures: a concentrated core of high-conviction winners, wrapped in deliberately chosen beta sleeves that express their macro views on growth, geography, and size without overpaying for single-name risk.