Investing in Q1 2023: One Capital Management, LLC's 13F Holdings Analysis

One Capital Management, LLC has recently released its latest 13F filings as of Q1 2023, revealing several changes in the investment firm's portfolio. In this article, we'll analyze the top holdings of the firm, the changes made, and the potential reasons behind these changes.

The Top Holdings

One Capital Management's top holdings are a mix of ETFs and individual stocks, with the iShares 1-5Y I/G Corp Bnd (IGSB) and the iShares 5-10Y I/G Corp Bd (IGIB) taking the top spots. These two ETFs account for roughly one-third of the firm's total portfolio value.

Other significant holdings include the WisdomTree US Qlty Div Gr (DGRW), the iShares Natl Muni Bnd ETF (MUB), and the Invesco S&P 500 Pure Val ETF (RPV). All three of these holdings make up between 5% to 7% of the total portfolio value.

Changes in Holdings

One Capital Management made several notable changes in its portfolio during Q1 2023. The firm decreased its holdings in the iShares 1-5Y I/G Corp Bnd (IGSB) and the First Trust Dorsey Wright Focus 5 (FV) by 23.4% and 4.5%, respectively. On the other hand, the firm increased its holdings in the iShares 5-10Y I/G Corp Bd (IGIB) and the Wisdom Intl Qlty Div Grth (IQDG) by 115.6% and 14.1%, respectively.

The significant increase in the iShares 5-10Y I/G Corp Bd (IGIB) could be due to the Federal Reserve's recent interest rate hikes, as it offers investors a longer duration bond strategy. The increase in the Wisdom Intl Qlty Div Grth (IQDG) could indicate the firm's bullishness on international equities.

In addition, One Capital Management initiated new positions in several companies, including Nvidia Corporation (NVDA), Alphabet Inc Class-C (GOOG), and Meta Platforms Inc Cl-A (META). These new positions could be a signal that the firm is looking to diversify its investment offerings by pursuing individual stocks.

Reasons for Changes

One possible reason for One Capital Management's shift in holdings could be a reaction to the current global economic environment. With interest rates on the rise, bond investments may become less attractive, leading to a decrease in the firm's holdings in iShares 1-5Y I/G Corp Bnd (IGSB).

Moreover, the firm may be bullish on international equities as developed markets outside the US rebound from the pandemic crisis. The increase in positions in Wisdom Intl Qlty Div Grth (IQDG), as well as the initiation of positions in companies such as Meta Platforms and Nvidia Corporation, could demonstrate that the firm is looking to capitalize on this potential growth opportunity.

Conclusion

One Capital Management's Q1 2023 13F filing shows several changes in the firm's holdings, including a shift away from bond investments and an increase in international equities. These changes could be due to the current economic climate and may offer investors insight into potential opportunities for growth.