Investment Strategies: Analysing Wechter Feldman Wealth Management's Q1 2021 vs Q2 2021 13F Holdings

Wechter Feldman Wealth Management, Inc., based out of Germantown, Maryland, is a financial and investment advisory firm offering services to high net worth individuals and families. They recently filed their Q2 2021 13F holdings report with the Securities and Exchange Commission (SEC) detailing their holdings as of June 30, 2021, and comparing them with their Q1 2021 holdings. In this blog post, we analyze these holdings, highlighting significant changes and discussing the possible reasons for these fluctuations.

SPDR S&P 500 ETF TR (SPY)

Wechter Feldman Wealth Management, Inc. increased their holdings in SPY by 0.99%. SPY is the largest ETF in terms of AUM (Assets Under Management) and tracks the performance of the S&P 500 Index. The increase in SPY holdings is indicative of rising confidence in the US economy, as the S&P 500 Index is generally considered a barometer for the strength of US equities.

Vanguard Index funds (VHT, VIG, VTI, VTV)

The firm increased its holdings in Vanguard Index Funds substantially, with VHT holdings increasing by 1.47%, VIG holdings decreasing by 0.48 %, VTI holdings increasing by 7.26%, and VTV holdings increasing by 100% (from no holdings in Q1 2021). Vanguard is known for its low-cost index funds that track a wide variety of market indexes, and they continue to be a popular investment option for investors. The increase in holdings in these funds suggests a general bullish outlook on US equities.

Vanguard BD Index Funds (BSV)

Wechter Feldman Wealth Management, Inc. increased its holdings in BSV by a staggering 3711.16%, making it their third-largest holding in Q2 2021. BSV tracks the performance of the Bloomberg Barclays US Aggregate Bond Index, which consists of high-quality, investment-grade bonds, and bond funds. This significant jump in BSV holdings suggests a shift towards a more diversified and balanced approach to investment and indicates an increase in the firm's efforts to expand its fixed-income portfolio.

Other notable holdings

Eli Lilly, Quest Diagnostics, and Moody's Corporation:

Wechter Feldman Wealth Management, Inc. increased its holdings in Eli Lilly, Quest Diagnostics and Moody's Corporation by 22.77%, 2.81% and 21.15% respectively. These companies belong to the health care, diagnostics and financial sectors respectively, which indicates a strong desire by the firm for a balanced approach in their investment strategies.

Apple:

Wechter Feldman Wealth Management, Inc. decreased its holdings in Apple by 14.68%. This decrease could be attributed to the ongoing challenges the company is facing with supply chain disruptions and the ongoing pandemic's continued impact, which has resulted in delayed production and launch of new products.

The firm also reduced its holdings in selected ETFs, including Select Sector SPDR Trust (XLP) and iShares 20+ Year Treasury Bond ETF (ILTB) in Q2 2021.

Conclusion

Wechter Feldman Wealth Management, Inc.'s Q2 2021 13F holdings report shows a decent balance between equities and fixed income investments, with an emphasis on the US equity market. Their increased holdings in Vanguard's Index Funds suggest they have confidence in index fund investing, while their significant increase in the Vanguard BD Index Fund holdings indicate their efforts to diversify their fixed-income portfolio. Their holdings in specific sectors indicate a cautious but balanced approach to investments. Overall, the report reveals a well-thought-out, dynamic, and adaptable investment strategy by Wechter Feldman Wealth Management, Inc. towards achieving their clients' investment goals.