Stairway Partners, LLC Q4 2022 vs. Q1 2023 13F Holdings Comparison: Major Shifts in Global Market ETFs

Stairway Partners, LLC, a New York-based investment firm, has recently released its 13F filings for Q4 2022 and Q1 2023. As the stock market continues to show an unpredictable trajectory, experts and investors alike are keeping a close eye on any significant changes in holdings among the top financial institutions.

According to Stairway Partners' latest report, the firm has made some drastic adjustments to its global market ETF portfolio, especially in the iShares and Vanguard funds. This move points to a more bearish outlook on the US market, as investors flock to value stocks and emerging markets with high growth potential.

One notable change is the increase in holdings of iShares MSCI EAFE Index Fund (EFA) from 2.91 million in Q4 2022 to 2.92 million in Q1 2023. While this may seem like a minor shift, the increase in portfolio value from $191,153,000 to $208,702,000 marks a significant 9.2% increase fuelled by the growth of European and Asian stocks.

The most significant change in holdings is the complete sell-off of iShares Core US Aggregate Bond ETF (AGG) and Vanguard Total Bond Market ETF (BND) in Q1 2023. Stairway Partners previously held no shares in AGG, but its holdings in BND increased from 0 to over 2.26 million shares in Q4 2022. This sudden shift away from bonds and towards equities is a clear sign of the firm's bearish outlook on US fixed-income securities.

Stairway Partners also increased its holdings in iShares 1000 Value ETF (IWD) and iShares Core MSCI Emerging Markets Index ETF (IEMG) by 2.6% and 9.5%, respectively. These moves suggest that the firm is placing its bets on value stocks and emerging markets as they have the potential for high returns.

In contrast, Stairway Partners reduced its holdings in iShares Russell 1000 Growth ETF (IWF) and SPDR S&P 500 ETF Trust (SPY) by 16.2% and 9.5%, respectively. The firm's portfolio managers believe that these high-growth stocks and broader US equity ETFs may be overvalued and may underperform in the near term.

On the other hand, the firm increased its stake in Vanguard MSCI Europe Equity Index Fund (VGK) and SPDR S&P Emerging Asia Pacific ETF (GMF) by 10.5% and 11.9%, respectively. These funds are expected to benefit from positive economic trends and relatively lower valuations compared to the US market.

In conclusion, Stairway Partners' Q4 2022 vs. Q1 2023 13F holdings comparison highlights the firm's proactive steps to mitigate risks and capitalize on new investment opportunities in a volatile market. As always, expert consultation and thorough analysis are essential to make informed investment decisions.