You’ve probably seen the ticker GRWTEX pop up in your retirement plan or institutional portfolio and wondered if it’s just another boring index tracker. Honestly, it isn't. Wellington CIF II Growth S5 is a Collective Investment Fund (CIF) managed by Wellington Management, and it’s basically a high-octane bet on the biggest, most successful companies in the United States.
It’s not a mutual fund in the traditional retail sense. You can’t just open a Robinhood account and buy a few shares while drinking your morning coffee. Since it's a CIF, it’s specifically designed for qualified retirement plans—think 401(k)s or pension funds. This structure is actually a win for you because it usually means lower overhead costs than a standard mutual fund.
Why Wellington CIF II Growth S5 Matters for Your Retirement
Most people think "growth" just means tech. While technology is a massive chunk of this portfolio, the actual goal is a bit more nuanced. The fund looks for companies with a market cap of at least $1 billion that can sustain earnings growth better than the rest of the pack.
The benchmark here is the Russell 1000 Growth Index.
If the index zigzags, this fund wants to zig harder to the upside. Historically, companies that can consistently outpace the market in earnings tend to see their stock price follow suit over the long haul. Wellington is betting that their fundamental, bottom-up research can spot these winners before the rest of the market prices them to perfection.
The "S5" Mystery
What's with the "S5" at the end? It stands for Series 5.
In the world of institutional investing, different "series" usually correspond to different fee structures or share classes. Series 5 is often one of the most cost-effective versions available to large plans. Currently, the expense ratio for this specific slice sits around 0.31%.
For an actively managed strategy, that's pretty cheap.
What’s Actually Inside the Portfolio?
If you peeked at the holdings as of late 2025, you’d see a list of the usual suspects, but the concentration is what should catch your eye. This isn't a "closet index" fund. It takes big swings.
As of the most recent reporting, the top 10 holdings accounted for roughly 67% of the total assets. That is a massive concentration. If NVIDIA has a bad week, the fund feels it. If Microsoft hits a home run with a new AI integration, the fund soars.
- NVIDIA Corp: ~14.5%
- Microsoft Corp: ~12.8%
- Apple Inc: ~10.5%
- Alphabet Inc: ~6.2%
- Broadcom Inc: ~5.6%
Basically, more than half the fund is tied up in the "Magnificent" tech giants. The sector breakdown is equally aggressive, with Technology making up over 54% of the weight. Communication Services and Consumer Cyclical (think Amazon and Tesla) make up most of the rest.
It’s a lopsided portfolio. But that's the point. You don't buy a growth fund to be balanced; you buy it to capture the upside of the winners.
Performance: Is It Worth the Risk?
In 2024, the fund went on an absolute tear, posting a return of about 32.8%.
Then 2025 rolled around, and things cooled off a bit, landing closer to 16.8%.
You have to look at the "Batting Average." In the investment world, this is the percentage of periods where the fund beats its benchmark. For the 1-year period leading into early 2026, the fund had a batting average of about 75%. That’s impressive. It means the managers are making the right calls more often than not.
However, volatility is part of the deal. With a Standard Deviation that often higher than a broad market fund, your account balance will bounce around. Kinda stressful? Sure. But that's the price of admission for seeking 20%+ annual returns.
The Strategy Behind the Scenes
Wellington doesn't just throw darts at a board. They use a "Fundamental, Bottom-Up" approach.
This means they have an army of analysts who spend their entire careers studying one specific niche—like semiconductors or retail. They visit the companies. They talk to the CEOs. They try to figure out if a company's growth is real or just a flash in the pan.
The fund is currently managed by a team that includes Daniel Fitzpatrick, an industry veteran. They look for four main drivers:
- Quality: Does the company have a moat?
- Growth: Are earnings actually increasing?
- Capital Return: Are they buying back shares or paying dividends?
- Valuation: Is the price reasonable relative to future potential?
Even though it’s a growth fund, they won't buy a stock at "any price." They still want a deal, or at least a "fair price" for exceptional growth.
A Quick Word on Collective Investment Funds (CIFs)
CIFs like this one are regulated by the Office of the Comptroller of the Currency (OCC) rather than the SEC.
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Why should you care?
Because they aren't required to provide a prospectus in the same way a mutual fund is. This lack of public transparency is why you won't find GRWTEX on many standard finance apps. You usually have to log into your specific 401(k) portal to get the latest "fact sheet."
Should You Hold This in Your Portfolio?
If you’re 25 and just starting your career, a heavy tilt toward Wellington CIF II Growth S5 might make a lot of sense. You have time to weather the inevitable 10% or 20% drops that come with tech-heavy growth investing.
If you’re 64 and planning to retire next summer?
Maybe not.
The concentration in a few mega-cap tech names creates "single-stock risk" disguised as a diversified fund. If the tech sector faces a regulatory crackdown or a sudden shift in AI sentiment, this fund will lead the way down.
Key Risks to Watch
- Sector Concentration: Over 50% in Tech is a lot of eggs in one basket.
- Interest Rates: Growth stocks usually hate high interest rates because it makes their future earnings worth less today.
- Liquidity: Because it's a CIF, you can't trade it throughout the day. You get the price at the end of the market close.
Actionable Steps for Investors
If you find this fund in your retirement plan, don't just "set it and forget it."
First, check your total exposure. If you have this fund plus a broad S&P 500 index fund, you are likely "double dipping" on stocks like Microsoft and Apple. You might be way more concentrated in tech than you realize.
Second, compare the expense ratio of this fund against the other options in your plan. If your 401(k) offers a Russell 1000 Growth Index fund for 0.05%, you have to decide if Wellington's active management is worth the extra 0.26% you're paying.
Lastly, look at the Turnover Ratio. This fund tends to have a moderate turnover, meaning they aren't day-trading, but they aren't holding forever either. Make sure you're comfortable with a team that's actively shifting positions based on market conditions.
The best way to handle a fund like this is to treat it as a "growth engine" for a larger, more diversified portfolio. It shouldn't be the only thing you own, but as a piece of a larger puzzle, it has the horsepower to significantly move the needle on your retirement goals.
Check your latest 401(k) statement. See if you're in the S5, S2, or another series. Each has its own fee profile, and knowing which one you have is the first step to making sure you aren't overpaying for performance.
Always review the specific "Plan Disclosure" document provided by your employer to see the exact fees being charged to your account. This is the only way to see the "all-in" cost of the Wellington strategy within your specific retirement wrapper.