Drake Expands Diverse ETF Holdings
Drake & Associates Boosts Portfolio with Increased Stakes in Diverse Fixed-Income and Equity ETFs
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Key Points
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Janus Henderson AAA CLO ETF (JAAA) is described as an exchange-traded fund that “mostly invests in investment grade fixed income” and seeks to provide current income by actively selecting “investment-grade floating rate” collateralized loan obligation (CLO) securities.
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Columbia Research Enhanced Core ETF (RECS) is reported to have a market capitalization of about $5.54 billion, a P/E ratio of 22.01, and a beta of 0.93.
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VanEck Merk Gold ETF (OUNZ) is reported to have a beta of 0.14 and a P/E ratio of 6.97; the article also adds that Drake & Associates owns approximately 0.77% of the ETF.
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For Putnam Focused Large Cap Value ETF (PVAL), Bank of America raised its stake by 22.0% to 12,422,010 shares (valued at about $530,668,000), while Morgan Stanley increased its position by 24.9% to 9,566,730 shares (about $435,956,000).
Drake & Associates LLC has quietly built a $36.3 million stake in the Putnam Focused Large Cap Value ETF (PVAL), part of a broader portfolio reshuffling that boosted the Wisconsin-based firm's positions across four exchange-traded funds, according to Watchlist News. The moves, revealed in Q1 2026 SEC filings submitted by May 15, show the registered investment advisor steadily rotating toward defensive and income-focused strategies.
Drake, which manages roughly $418.8 million in assets, lifted its PVAL holding by 9.9% to 795,851 shares. It also raised positions in a CLO bond fund, a gold ETF, and an enhanced equity ETF — each by roughly 7% to 10%.
Bank of America and Morgan Stanley Flood Into PVAL
Drake's PVAL buy looks modest next to moves by Wall Street's biggest players. Bank of America raised its PVAL stake by 22.0% to 12,422,010 shares, worth about $530.7 million, according to Watchlist News. Morgan Stanley went further — up 24.9% to 9,566,730 shares, valued at roughly $436.0 million.
PVAL is an actively managed large-cap value fund launched by Putnam in 2021. Franklin Templeton absorbed Putnam in January 2024. Since then, the fund has gained 36.66% from late 2024 alone, outpacing the S&P 500 with lower volatility, per Seeking Alpha.
Drake Bets Big on CLO Bonds as Rate Hedge
Drake grew its position in the Janus Henderson AAA CLO ETF (JAAA) by 9.8% to 636,875 shares, valued at $32.2 million and making up 6.4% of its portfolio, according to Watchlist News. CLOs — collateralized loan obligations — bundle corporate loans into bonds. JAAA holds only AAA-rated senior slices, the safest tier.
Janus Henderson positions JAAA as a "core bond substitute" with floating-rate income. That means its yield rises when interest rates rise — useful insurance in an uncertain rate environment. Analysts at Seeking Alpha have called JAAA the "winner" for income seekers in 2026, though some warn the trade may be getting crowded.
Gold and Equity Funds Round Out the Defensive Shift
Drake also added to its VanEck Merk Gold ETF (OUNZ) position, lifting it by 7.0% to 481,730 shares worth $20.0 million. That stake equals about 0.77% of the entire ETF. OUNZ has a beta of just 0.14 — meaning it barely moves with the stock market — making it a low-correlation hedge, per Watchlist News.
On the equity side, Drake raised its Columbia Research Enhanced Core ETF (RECS) holding by 8.7% to 1,006,402 shares, worth $41.1 million and 8.2% of its portfolio. RECS tracks a quantitative stock-selection model. It carries a P/E ratio of 22.01 and a beta of 0.93 — close to the market but with a research-driven tilt.
Broader Trend: Institutions Choosing Active Over Passive
Drake's moves reflect a wider shift. A 2026 Brown Brothers Harriman survey found that 63% of institutional investors are becoming "more selective," moving away from pure index funds toward active-passive combinations. Firms like Drake are increasingly acting as "active allocators" rather than passive index buyers.
VanEck's 2026 outlook says institutional models are "structurally overweight" gold as central banks diversify away from traditional markets. Together, Drake's four ETF additions point to a clear strategy: earn steady income from CLOs, seek alpha in value stocks, and hedge tail risk with gold.
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