ETF Portfolio Adjustment
RFG Holdings Initiates Major Vanguard VEA Stake, Trims Other ETF Positions
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Key Points
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In its Q1 trim of the Franklin FTSE India ETF (FLIN), RFG sold 90,081 shares—dropping the position to 21,123 shares worth about $702,000—and at quarter-end FLIN had an indicated trading range of a 12-month low near $32.20 and high near $40.08. The filings also showed other managers adding to FLIN, including Stifel Financial Corp (up 2.4% to 16,380 shares) and BNP Paribas Financial Markets (up 1.7% to 18,160 shares).
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RFG’s reduced Global X MSCI Argentina ETF (ARGT) stake amounted to about 0.07% of ARGT at quarter-end (7,063 shares worth roughly $659,000). The same report noted ARGT opened around $97.10 and cited a 52-week low near $66.49 and high near $103.97—context for how the position was marked when RFG cut exposure.
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For the Vanguard FTSE Developed Markets ETF (VEA), Lexington Hill Partners disclosed that VEA became its 4th-largest holding, representing 5.3% of its portfolio, after increasing its stake by 17.5% (to 145,444 shares). Separately, RFG said its new VEA position (201,501 shares, about $12.9 million) represented ~3.3% of its portfolio and ranked as its 11th-largest position.
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When RFG trimmed the Vanguard S&P 500 Growth ETF (VOOG) by 28.2%, it left the firm with 29,655 shares worth about $12.09 million—described as ~0.06% of VOOG at quarter-end and about 3.0% of RFG’s holdings (12th-largest position). Another article also reiterated fund basics: VOOG tracks the S&P 500 Growth index, launched Sept. 7, 2010, and is managed by Vanguard.
RFG Holdings Inc. made a major portfolio shift in the first quarter of 2024, buying 201,501 shares of the Vanguard FTSE Developed Markets ETF (VEA) worth roughly $12.9 million, according to Ticker Report. The Texas-based investment firm made the new VEA stake its 11th-largest holding, representing about 3.3% of its portfolio.
To help fund the move, RFG cut its positions in three other ETFs. It slashed its Franklin FTSE India ETF stake by 81%, trimmed its Global X MSCI Argentina ETF by 77.5%, and reduced its Vanguard S&P 500 Growth ETF holding by 28.2%, according to Watchlist News.
RFG Dumps India and Argentina Exposure in Q1
RFG's biggest cut was in its India ETF position. The firm sold 90,081 shares of the Franklin FTSE India ETF (FLIN), leaving it with just 21,123 shares worth about $702,000, according to Watchlist News. FLIN traded in a 12-month range of roughly $32.20 to $40.08 at quarter-end. The dramatic reduction — more than four out of every five shares sold — signals a clear exit from the India trade.
RFG also nearly abandoned its Argentine position. It cut the Global X MSCI Argentina ETF (ARGT) by 77.5%, leaving just 7,063 shares worth about $659,000 — roughly 0.07% of the fund. Argentina's economy contracted 2.6% in Q1 2024 as President Javier Milei's austerity reforms hit households hard, making the risk profile of Argentine assets less attractive to many managers.
RFG Pivots $12.9M Into Low-Cost Developed Markets ETF
The centerpiece of RFG's rebalancing is its new $12.9 million position in VEA, per Ticker Report. VEA gives investors broad, low-cost access to stocks across 24 developed countries outside the U.S. — including Japan and major European markets. Its expense ratio is just 0.03%, making it one of the cheapest ways to get that exposure.
The appeal is valuation. Developed ex-US stocks traded at a forward price-to-earnings ratio of about 17.7 times in early 2024 — a steep discount to U.S. growth indices. VEA also carries a dividend yield near 3.1%. For a firm trimming high-growth, high-volatility bets, the math was straightforward.
Other Firms Bet Against RFG on India and Argentina
While RFG was selling India, other managers were buying. Stifel Financial Corp increased its FLIN stake by 2.4% to 16,380 shares. BNP Paribas Financial Markets added 1.7% to reach 18,160 shares. National Bank of Canada also initiated or added to an FLIN position, according to Watchlist News. These firms appear to be leaning into India's long-term growth story even as some peers exit.
On the Argentina side, Ameriprise took a different view from RFG, maintaining or building exposure to ARGT. Some analysts argue that Milei's fiscal reforms — painful in the short run — could lead to a significant re-rating of Argentine assets once GDP stabilizes, potentially pushing valuations to 14–18 times earnings.
Lexington Hill Also Loads Up on VEA as Institutions Shift
RFG is not alone in its VEA bet. Lexington Hill Partners raised its VEA stake by 17.5%, bringing its total to 145,444 shares. VEA became the firm's 4th-largest holding, making up 5.3% of its portfolio. The parallel moves suggest a shared conviction among some managers that developed ex-US markets offer better value right now than U.S. growth stocks.
RFG also trimmed its Vanguard S&P 500 Growth ETF (VOOG) by 28.2%, leaving 29,655 shares worth about $12.09 million — its 12th-largest holding. VOOG tracks the S&P 500 Growth index and launched in September 2010. Cutting it while adding VEA tells a clean story: less U.S. growth, more international value. Institutional ETF adoption has doubled over five years to $337 billion in 2025, according to research from Cerulli Associates, meaning more firms are making exactly these kinds of core portfolio switches through ETFs.
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