Diversified Portfolios, Inc. Q4 2022 vs Q1 2023: Key Changes in Fund Holdings

The end of Q1 2023 marks an interesting comparison point for Diversified Portfolios, Inc.'s holdings against the end of Q4 2022. The quarterly Form 13F filings submitted by the company to the SEC reveal that some of its major investment positions underwent significant changes between the two quarters. Here's a rundown of the most substantial changes:

Vanguard Short-Term Bond Index Fund (BSV) - Up 6.5%

Diversified Portfolios, Inc. increased its holdings in BSV from 734,345 shares to 769,672 shares. This move follows a larger trend of investors preferring short-term bonds over long-term due to rising interest rates and the potential for inflation.

Apple Inc (AAPL) - Up 26%

The fund's investment in Apple Inc. increased from 45,630 shares to 45,295 shares, which reflects a higher level of confidence in the tech giant. Apple's revenue growth seems to be on a good trajectory, and the company is continuing to make strides in its product lineup.

Vanguard Interm Bond Index ETF (BIV) - Down 15.9%

On the other hand, Diversified Portfolios, Inc. decreased its holdings in the Vanguard Interm Bond Index ETF from 315,262 shares to 256,722 shares. This shift stamps a move away from intermediate-term bonds and could signal that the fund is anticipating a rise in interest rates in the near future.

iShares Short-Term National Muni Bond ETF (SUB) - Up 16.6%

The fund's investment in iShares Short-Term National Muni Bond ETF increased from 19,698 shares to 22,883 shares. This increased investment in municipal bonds could derive from the impact of tax reforms, which have elevated the value of tax-exempt municipal bond investments.

Vanguard ESG U.S. Stock ETF (ESGV) - Up 13.5%

Diversified Portfolios, Inc. increased its holdings in the Vanguard ESG U.S. Stock ETF from 159,317 shares to 166,013 shares. This selection of exchange-traded fund (ETF) focuses on companies that adhere to environmental, social, and governance (ESG) criteria, indicating that the fund might harbor a more socially conscious approach to investments.

iShares Ultra Short-Term Bond ETF (ICSH) - Down 32%

Finally, the fund's investment in the iShares Ultra Short-Term Bond ETF decreased from 218,918 shares to 148,272 shares. This change denotes the fund's attempt to isolate itself from further market volatility as this ETF leans towards owning low-risk investments.

Conclusion

It's essential to bear in mind that Form 13F only offers a snapshot of a fund's holdings at the end of a particular quarter. Yet, by examining the changes Diversified Portfolios, Inc. recently made to their holdings, investors can gain some insights into the fund's investment strategy direction. The moves detailed in this report suggest an overall trend towards securing broad asset classes with low risk. Nonetheless, Diversified Portfolios, Inc. remains optimistic about the steady progress of the US economy, and investors can expect the fund to pivot its holdings as market conditions fluctuate.