Nicholas Hoffman & Company's Q3 2022 vs Q4 2022 13F Holdings Comparison: Vanguard ETFs lead gains while Invesco QQQ Trust struggles

Investment firm Nicholas Hoffman & Company, LLC released its Q3 2022 vs. Q4 2022 13F Holdings Comparison, which details changes in holdings for various exchange-traded funds (ETFs) and companies. The CSV shows that most of the funds and firms experienced increases in their holdings, with some reporting decreases.

Let's dive into the changes and see what they could mean for investors.

Vanguard ETFs Lead the Gains

Unsurprisingly, the top performers in the CSV were Vanguard ETFs. The Vanguard S&P 500 ETF (VOO) experienced the highest increase, with a 59.8% jump in shares held, and a 59.9% increase in value held. The Vanguard FTSE Developed Markets ETF (VEA) was not far behind, with an increase of 85.5% in shares held, and a 85.4% increase in value held. Meanwhile, the Vanguard Total Stock Market ETF (VTI) saw a 4.7% increase in shares held, and a 4.5% increase in value held.

Together, these funds represent a sizeable proportion of the portfolio, and their performance serves as a strong indication of the firm's overall sentiment towards the equity markets.

Invesco QQQ Trust Struggles

While most of the funds in the CSV saw increases in holdings, the Invesco QQQ Trust (QQQ) recorded a minuscule 0.4% decrease in shares held, and a 0.4% decrease in value held. This contrasts with the positive trajectory of other tech stocks, such as Microsoft (MSFT) which recorded a 2.9% increase in shares held, and a 3.0% increase in value held.

The Invesco QQQ Trust tracks the Nasdaq-100 Index and is heavily weighted towards the big tech firms such as Apple, Microsoft, and Amazon. The muted performance suggests that investors may be considering the possibility of a tech slowdown or rotation, and are turning their attention to other areas of the market.

Berkshire Hathaway Bolstered

Berkshire Hathaway experienced a substantial increase in shares held, with the Class B shares (BRK-B) seeing a 40.8% increase, and the Class A shares (BRK-A) seeing a 15.3% increase. The firm, led by Warren Buffet, is known for its value investment style and has a diversified portfolio of companies.

The increase in Berkshire Hathaway's holdings could signal investors looking for stability in the current market conditions. With the market's recent volatility, investors may be seeking refuge in companies with strong fundamentals and predictable cash flows.

Other Notable Increases

Other notable increases include the Vanguard Dividend Appreciation ETF (VIG), which saw a 14.7% increase in shares held, and the Vanguard Mid-Cap ETF (VO), which saw a 49.5% increase in shares held. The latter is particularly interesting as mid-cap stocks are often overshadowed by their large-cap counterparts, but can offer attractive returns for investors seeking higher growth potential.

On the other hand, the CSV shows that some firms saw decreases in holdings. These include Amazon (AMZN), with a 34.9% decrease in shares held, and the WisdomTree Emerging Markets SmallCap Dividend Fund (DGS), with a 28.9% decrease in shares held.

Takeaway

Overall, the CSV highlights the positive sentiment that investment firm Nicholas Hoffman & Company, LLC holds towards the equity markets. The notable increases in Vanguard ETFs and some individual company holdings suggest a continued bullish sentiment. Similarly, the increase in Berkshire Hathaway holdings shows investors seeking stability in the current market environment.

That said, the minor decrease in Invesco QQQ Trust holdings could indicate some caution towards the tech sector. Similarly, the decreases in holdings for some companies could reflect a repositioning of the portfolio to reflect changes in market conditions.

Investors should consider these changes in holdings within the broader context of their investment goals, risk tolerance, and market outlook. Evaluating holdings changes can be a useful exercise, but should not be the sole basis for investment decisions.