Diving into the Advisory Alpha, LLC Q4 2022 vs. Q1 2023 13F Holdings

In the world of finance, investors always look to capitalize on opportunities and maximize their returns. One of the most critical factors in this field is staying current with the latest trends and changes in holdings. Advisory Alpha, LLC Q4 2022 vs. Q1 2023 13F Holdings Comparison shows the differences and similarities in holdings for this fund. In this blog post, we will analyze and explore the changes, the reasons behind them, and the impact they may have had on the market.

The Comparison:

In comparing the holdings of Advisory Alpha, LLC from Q4 2022 to Q1 2023, we can see a few trends. At a high level, the total value of holdings has increased from $1,034,873 in Q4 2022 to $1,112,766 in Q1 2023, representing a 7.5% increase in value. Additionally, the fund increased the number of shares held for 19 of the 43 stocks analyzed, with a decrease for 24 of the stocks.

The top five stocks owned by the fund in Q4 2022 were SPDR S&P 500 ETF Trust (SPY), Apple Inc (AAPL), Select Sector SPDR Trust Financial (XLF), Vanguard Scottsdale Funds- Vanguard Short-Term Corporate Bond ETF (VCSH), and SPDR Series Trust- S&P 500 Growth ETF (SPYG). However, in Q1 2023, the top-five holdings were SPDR S&P 500 ETF Trust (SPY), Select Sector SPDR Trust Financial (XLF), Vanguard Scottsdale Funds- Vanguard Short-Term Corporate Bond ETF (VCSH), SPDR Series Trust- S&P 500 Value ETF (SPYV), and SPDR Series Trust- S&P 500 ETF (SPY).

The most significant increase in holdings came in Vanguard Scottsdale Funds- Vanguard Short-Term Corporate Bond ETF (VCSH), where there was a 4.3% increase in shares held between Q4 2022 and Q1 2023. Also, SPDR Series Trust- S&P 500 Value ETF (SPYV) had an impressive 13.8% increase in shares held, followed by Select Sector SPDR Trust Financial (XLF) with a 9.9% increase in shares held.

On the other hand, the biggest decrease in holdings came from SPDR Series Trust- S&P 500 ETF (SPY), with a 0.6% decrease in shares held, followed by Select Sector SPDR Trust Industrial (XLI), with a 1% decrease in shares held and trailing behind was Select Sector SPDR Trust Energy (XLE), which experienced a 0.7% decrease.

The Reasons Behind the Changes:

There could be various reasons why Advisory Alpha, LLC chose to alter its holdings between Q4 2022 and Q1 2023. Investors often adjust their portfolios to capitalize on emerging trends in the market. According to Investopedia, investors may sell stocks for a variety of reasons, such as taking profits, cutting losses, following the crowd, or making a strategic asset allocation shift.

For example, the increase in holdings for Select Sector SPDR Trust Financial (XLF) may be attributed to investors' faith in banks' ability to recover and grow profitably amidst the pandemic. In contrast, the decrease in holdings of Select Sector SPDR Trust Industrial (XLI) could be due to an expected shift from a commodity-based economy to a more service-based one.

Impact on the Market:

From an analytical standpoint, changes in holdings by a fund as prominent as Advisory Alpha LLC can have an impact on the market. An increase in holdings of a particular stock by a significant player, for instance, can boost investor confidence and classically increase demand for those stocks.

On the other hand, a decrease in holdings can have an adverse impact on a stock's value. In some cases, where a mutual fund holds a sizeable position in a particular stock, any change of heart or shift in position by the fund could trigger a significant stock market sell-off.

Conclusion:

In conclusion, the Advisory Alpha, LLC Q4 2022 vs. Q1 2023 13F Holdings Comparison highlights the dynamics of the securities market and how investors continually adjust their portfolios based on emerging market trends. By analyzing and understanding these holdings, investors can make informed decisions about their investments, helping them achieve their investment objectives. The reasons behind changes in holdings are diverse, and it is essential to conduct thorough research before making any investment decisions.