Investing in ETFs: A Review of Dynasty Wealth Management Holdings

Dynasty Wealth Management, LLC, a wealth management firm known for its diversified investment portfolios, recently released its Q3 2018 vs Q4 2018 13F holdings comparison. As expected, the report shows significant shifts in holdings across various ETFs, companies and industries.

Unlike mutual funds, where investors buy shares in the fund, ETFs (exchange-traded funds) are traded like stocks. They are baskets of securities, often tracking an index or a specific sector, offering low fees and high diversification for investors.

In this blog post, we will analyze Dynasty Wealth Management's recent 13F holdings comparison report, highlighting the ETFs with the most significant changes in shares and value and providing insight into the reasons behind the shifts.

Vanguard FTSE Developed Markets ETF (VEA)

With an investment of $2,610,000 in Q3, Dynasty Wealth Management held 60,318 shares of Vanguard FTSE Developed Markets ETF. However, the report shows that the company ditched most of its shares, leaving only 5,641 (valued at $209,000) in Q4 2018. This move by Dynasty Wealth Management can be attributed to the increased volatility and trade tensions in developed markets, leading to lower expected returns.

Vanguard Total Stock Market Index Fund (VTI)

Dynasty Wealth Management also reduced its stake in the Vanguard Total Stock Market Index Fund in Q4 2018, selling 1732 of its shares valued at $259,000. This divestment from one of the most highly recommended ETFs can be linked to the market's overall negative performance in Q4 2018, which saw a significant slowdown in the US economy compared to 2017.

ProShares S&P 500 Dividend Aristocrats ETF (NOBL)

Although Dynasty Wealth Management did not completely exit its investment in the ProShares S&P 500 Dividend Aristocrats ETF, it drastically reduced its shares, selling 9,971 of its holdings (valued at $666,000) in Q4 2018. This ETF is known for its high dividend yields and consistent dividend growth from its underlying companies. The move to lessen its holdings in NOBL by Dynasty Wealth Management is likely due to the recent hike in interest rates by the Federal Reserve, which could lead to lower investment returns in the ETF.

Technology Select Sector SPDR Fund (XLK)

XLK, a popular ETF that tracks the technology sector, saw Dynasty Wealth Management divesting its 42,693 shares (valued at $3,216,000) in Q4 2018. This was a significant change, especially given the fact that the technology sector had consistently been one of the top-performing sectors for the most part of 2018. The reason for reduced investment in the technology sector could be traced to the previous quarter's plummeting of tech stocks such as Apple, Amazon and Facebook.

Conclusion

In summary, Dynasty Wealth Management's Q3 2018 vs Q4 2018 13F holdings comparison report shows the firm's inclination towards a diversified investment portfolio that can withstand economic fluctuations. Several factors, such as trade tensions, rising interest rates, and sluggish economic growth, played a significant role in the changes observed in holdings of the different ETFs.

As an investor, it's essential to remain mindful of market changes and regularly review and restructure your portfolio accordingly. While ETFs are known for their diversification, it's vital to consider due diligence before investing in specific ETFs. By striking a balance between diversification and proper research, you're better equipped to make informed investment decisions.