Trade Alert – All Core Equity & ETF Models
This morning, we executed some rebalancing trades across our core equity and ETF models. Google (GOOG) has been on a strong run lately and is now well above our target portfolio weights in both the equity and dividend growth models. As such, we are taking profits in GOOG and bringing our exposure in META up to the target weight in both models. We are also increasing our financial holdings across all models, as further Fed rate cuts are expected to benefit these holdings.
Lastly, a couple of months ago, we suggested that healthcare was deeply out of favor and due for a rotation. That occurred, taking our healthcare holdings above target weights. As such, we are reducing both ABBV and LLY back to the model.
In the dividend equity growth model, we are implementing a full rebalance across holdings and selling UGI in full.
In the ETF model, we rebalanced XLV to adjust it back to its target weight and added to XLF.
Equity Model
- Reduce GOOG to 4.5% of the portfolio
- Increase META to 4.5% of the portfolio.
- Reducing LLY and ABBV back to target weights of 4% and 4.5% respectively.
- Increase BLK to 2.5% of the portfolio and JPM to 3.5%
ETF Model
- Reducing XLV to 5% of the model and increasing XLF 9%.
Dividend Equity Growth Model
- Rebalancing the top 6 holdings (AAPL, META, AMZN, NVDA, GOOG, MSFT) to 5% weights each.
- Sell 100% of UGI
- Rebalance all other positions to 3.33% each, except for NLY at 2%.
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Lance Roberts is a Chief Portfolio Strategist/Economist for RIA Advisors. He is also the host of “The Lance Roberts Podcast” and Chief Editor of the “Real Investment Advice” website and author of “Real Investment Daily” blog and “Real Investment Report“. Follow Lance on Facebook, Twitter, Linked-In and YouTube
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