RFG Expands ETF Portfolio
RFG Advisory LLC Substantially Increases Stakes Across Diversified Exchange-Traded Funds in Q1
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Key Points
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RFG Advisory LLC owns about 0.40% of Fidelity Enhanced International ETF (FENI), making it the ETF's 21st-largest position after adding 135,141 shares in the quarter.
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In Invesco S&P SmallCap Momentum ETF (XSMO), RFG added 29,890 shares in Q1, bringing the total to 123,107 shares (valued at about $9.359 million).
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For First Trust SMID Cap Rising Dividend Achievers ETF (SDVY), RFG purchased an additional 40,647 shares in the period, increasing the holding to 300,293 shares.
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RFG’s position in Putnam Focused Large Cap Value ETF (PVAL) accounts for about 0.8% of its holdings and ranks as the ETF’s 15th-largest position.
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In SPDR Portfolio Long Term Treasury ETF (SPTL), RFG raised its stake by 3.4% to 691,730 shares (about $18.192 million) after adding 22,532 shares; the fund opened at $26.47 and sits near key moving averages (50-day around $26.01 and 200-day around $26.39).
RFG Advisory LLC quietly expanded its ETF holdings across five funds in the first quarter of 2024, adding hundreds of thousands of shares in a broad push toward factor-based investing. The Birmingham, Alabama-based wealth management firm boosted stakes ranging from 3.4% to 32.1%, with its largest single position — Putnam Focused Large Cap Value ETF (PVAL) — now valued at roughly $40.9 million, according to SEC EDGAR.
The moves come as RFG, which operates as a platform for independent financial advisors, centralizes its trading through what it calls an "integrated, institutional-quality wealth management" approach. CEO Shannon Spotswood has framed this strategy as a core part of the firm's growth. The Q1 trades made RFG a top-25 holder in multiple niche ETFs.
XSMO and FENI See the Biggest Percentage Jumps
RFG's boldest move was in Invesco S&P SmallCap Momentum ETF (XSMO), where it added 29,890 shares — a 32.1% increase — bringing its total to 123,107 shares worth about $9.36 million, according to MarketBeat. Analysts at ETF.com see this as a tactical bet on smaller stocks catching up after 2023's "Magnificent Seven" large-cap rally dominated markets.
RFG also raised its stake in Fidelity Enhanced International ETF (FENI) by 17.6%, adding 135,141 shares to reach 902,738 total — worth around $33.6 million. The firm now owns about 0.40% of FENI, making it the ETF's 21st-largest holder. FENI is actively managed, meaning it aims to beat a standard international index rather than just track it, per Defense World.
Value and Dividend ETFs Round Out a Diversified Bet
RFG grew its Putnam Focused Large Cap Value ETF (PVAL) position by 16.0%, adding more than 121,000 shares to reach 880,823 total. At roughly $40.9 million, PVAL is now RFG's largest disclosed ETF holding. RFG owns about 0.8% of the fund and ranks as its 15th-biggest holder, according to ETF Daily News.
The firm also added 40,647 shares to its First Trust SMID Cap Rising Dividend Achievers ETF (SDVY) position — a 15.7% increase — bringing it to 300,293 shares worth about $11.8 million. Both SDVY and XSMO focus on small-and-mid-cap stocks, which some risk analysts warn are more vulnerable if interest rates stay high for longer.
Long-Term Treasury Stake Signals a Defensive Hedge
RFG added 22,532 shares of SPDR Portfolio Long Term Treasury ETF (SPTL), raising its total to 691,730 shares worth about $18.2 million — a 3.4% increase. The fund opened at $26.47 and trades near its 50-day moving average of $26.01 and 200-day moving average of $26.39, according to MarketBeat. That means the price has been relatively flat, suggesting RFG bought during a period of stability.
Fixed-income strategists describe the SPTL move as a "duration play" — a bet that long-term interest rates will fall. When rates drop, long-term bond prices rise. By holding SPTL alongside aggressive equity ETFs like XSMO, RFG is building a portfolio designed to hold up in multiple economic scenarios, whether growth continues or a slowdown hits.
RFG's Broader ETF Push Reflects Industry Shift Away from Mutual Funds
The Q1 ETF buys are not isolated moves. Watchlist News reported that RFG also increased its stake in Invesco S&P 500 Quality ETF (SPHQ) by 62.3% to 271,890 shares in the same quarter. It also bought 317,527 new shares of Dimensional International Core Equity 2 ETF (DFIC) and added 129,601 shares of Fidelity Blue Chip Growth ETF (FBCG), bringing that holding to 663,672 shares — equal to 0.6% of FBCG.
The pattern points to a firm aggressively moving client assets from traditional mutual funds into ETFs. ETFs typically cost less and are more tax-efficient. RFG underwent a major organizational overhaul in 2023 to centralize its trading, which enabled the large-block purchases seen this quarter. The strategy mixes defensive value plays with higher-risk momentum bets — a structure analysts call "barbelling" risk.
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