Lunt Capital ETF Rebalancing
Lunt Capital Adjusts Holdings by Reducing Treasury Bills and Buying ETFs
Anonymous
Key Points
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VBIL tracks the Bloomberg 0–3M Treasury Bill Index, investing in U.S. Treasury securities with one- to three-month maturities. The ETF launched on Feb. 7, 2025, and is issued by Vanguard.
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Other institutional investors made substantially larger VBIL moves: Evanson Financial opened a position valued at about $152.5 million, while SCS Capital Management increased its holdings by 8,269.1% to 1,370,698 shares.
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PIZ opened at $54.01 and had a 12-month trading range of $45.74 to $59.47. The fund reported a market capitalization of approximately $758.84 million, a price-to-earnings ratio of 18.27 and a beta of 1.11.
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IDMO had a 12-month range of $52.14 to $63.88, with a market capitalization of about $4.25 billion, a price-to-earnings ratio of 18.41 and a beta of 0.79. The ETF primarily invests in the total-market equity segment and tracks an index of large- and mid-capitalization developed-market stocks.
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Among SPMB’s other institutional holders, Chesapeake Wealth Management owned 318,400 shares valued at approximately $7.1 million after increasing its position by 0.5% during the second quarter.
Lunt Capital Management made a strategic shift in the second quarter, cutting its short-term Treasury bill exposure by one-third while opening new positions in mortgage bonds and international stocks. The firm reduced its Vanguard 0-3 Month Treasury Bill ETF stake by 33.8% to 13,247 shares worth about $1 million, according to watchlistnews. Meanwhile, it deployed roughly $2.2 million across three new ETF positions focused on different asset classes and geographies.
Treasury Bill Retreat Amid Broader Rate Environment
Lunt Capital's reduction in VBIL signals a shift away from the shortest-duration Treasury securities. The Vanguard 0-3 Month Treasury Bill ETF, which launched just this February, tracks U.S. Treasury bills maturing in one to three months. The firm's 33.8% cut represents a strategic pivot as interest rates and market conditions evolve, watchlistnews reported.
Other institutional players made much larger moves in the same ETF. SCS Capital Management increased its VBIL holdings by a staggering 8,269% to 1.37 million shares. Evanson Financial, meanwhile, opened an entirely new position valued at $152.5 million. These diverging moves suggest investors view short-term Treasuries differently depending on their time horizons and cash-management needs.
Mortgage Bonds Enter the Portfolio for Fixed Income
Lunt Capital initiated a $514,000 position in the SPDR Portfolio Mortgage Backed Bond ETF, acquiring 23,020 shares at roughly $21.78 per share. This move brings mortgage-backed securities into the firm's fixed-income sleeve. Other institutional holders like Chesapeake Wealth Management hold much larger stakes—318,400 shares valued near $7.1 million after a modest 0.5% increase during the quarter.
International Momentum Stocks Attract New Capital
The firm opened two new positions in international developed-market momentum ETFs. Lunt Capital bought 13,795 shares of the Invesco Dorsey Wright Developed Markets Momentum ETF (PIZ) for about $771,000, and 15,000 shares of the Invesco S&P International Developed Momentum ETF (IDMO) for roughly $904,000. Both funds tap into developed markets outside the United States.
PIZ trades near $54 with a market cap around $759 million and a 12-month range of $45.74 to $59.47. IDMO is substantially larger, with a $4.25 billion market cap, trading near $63 with a 12-month range of $52.14 to $63.88. IDMO's lower beta of 0.79 versus PIZ's 1.11 means it typically moves less with overall market swings, offering different risk profiles for international equity exposure.
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