78 holdings. But how many actually drive the exposure?

EWYB gives me tokenized exposure to the iShares MSCI South Korea ETF.

And I realized I was making a simple assumption about ETFs:

more holdings = more diversification.

Then I looked at the actual weights.

In iShares' July 29 holdings snapshot, EWY had 78 holdings.

But Samsung Electronics accounted for 21.27% of the fund, while SK Hynix represented another 21.11%.

Together, those two positions were 42.38% of the fund.

The five largest holdings accounted for about 50.35%.

And Information Technology alone represented 47.40% of the portfolio.

That doesn't mean EWY isn't diversified.

It means something more useful:

the number of holdings doesn't tell me how evenly the exposure is distributed.

So when I look at an ETF through a bStock, I don't want to stop at:

“78 holdings.”

I also want to ask:

“How much of the exposure is actually driven by the largest positions?”

For me, that's a much better way to read ETF exposure.

#bstockscis @BinanceCIS