Capital Advantage, Inc.'s 13F Holdings in Q4 2022 vs. Q1 2023: Analyzing the Change

Capital Advantage, Inc. has released its 13F Holdings report, comparing the shares and values of various ETFs and stocks that the company holds in Q4 2022 vs. Q1 2023. While some holdings have remained stable or even decreased, there are notable increases in others. In this article, we will analyze these changes to help investors and stakeholders understand what they may indicate.

One significant decrease occurred in the holding of ICSH (BlackRock Ultra Short Term Bond ETF). In Q4 2022, Capital Advantage, Inc. held 950,385 shares, which decreased to 830,770 shares in Q1 2023. The value of this holding also decreased from $47,557,000 to $41,646,000, indicating a 12.4% decrease. This change may be driven by various factors, including changes in interest rates or any adverse news that may have impacted the underlying bonds. Bond ETFs are generally considered less volatile than equity ETFs, but we may see some changes in their holdings from time to time.

On the other hand, there are other ETF holdings that saw an increase, with FLOT (iShares Floating Rate ETF) being the most notable. In Q4 2022, Capital Advantage, Inc. held 729,206 shares, which significantly increased to 485,057 shares in Q1 2023. The value of this holding also decreased from $36,700,000 to $24,345,000, indicating a massive 33.7% decrease. While the value decrease may appear concerning, the increase in shares implies that Capital Advantage, Inc. has confidence in the ETF, which may indicate that they believe the underlying bonds are stable. Moreover, floating-rate ETFs may help investors hedge against inflation by offering variable interest rates, which may increase if the Federal Reserve raises interest rates.

Another ETF that saw an increase is VIGI (Vanguard International Dividend ETF), with Capital Advantage, Inc. holding 437,817 shares in Q4 2022, and increased to 426,937 shares in Q1 2023. The value of this holding also increased slightly from $30,485,000 to $31,644,000, indicating a 3.8% increase. This increase may be due to the fact that more investors are shifting towards international ETFs to diversify their portfolios. Additionally, some international markets may prove to be more successful than some domestic markets, adding to the appeal of international ETFs.

There are also individual stock holdings, such as Apple (AAPL), Microsoft (MSFT), and Amazon (AMZN), which continue to perform well and maintain their position as top holdings. Among them, Apple may have encountered some headwinds when China's decision to delay its new data privacy laws, which led to analysts cutting their Q4 revenue estimates; however, Capital Advantage, Inc. has confidence in the company, as they continue to hold 60,198 shares in Q1 2023. Microsoft and Amazon continue to thrive, with the latter gaining 18.8% in value.

In conclusion, Capital Advantage, Inc.'s 13F Holdings report demonstrates some interesting changes in their ETF and stock holdings. The decrease in ICSH may be due to various factors, while the increase in FLOT and VIGI may be driven by the desire to hedge against inflation and diversify portfolios, respectively. Additionally, some of the individual stocks continue to perform well, even in uncertain times. As always, investors and stakeholders are encouraged to perform their own due diligence before making any investment decisions.