Summit Financial's ETF Surge
Summit Financial LLC Substantially Increases ETF Holdings in Key US and International Markets
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Key Points
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In SCHX, Summit Financial LLC reported owning 626,200 shares after purchasing an additional 102,697 shares in the quarter (ending value: $16,851,000), while Moneta Group Investment Advisors also increased its position—up 3.0% to 35,831,024 shares (valued at $964,213,000).
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For EFAV, Summit Financial LLC owned 371,659 shares after buying 9,749 more during the quarter (ending value: $32,056,000). Other investors showed larger EFAV moves as well, including Brighton Jones LLC, which lifted its holdings by 41.7% to 3,780 shares.
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In IUSB, Summit Financial LLC increased its holding to 598,936 shares after purchasing 16,949 additional shares (ending value: $27,874,000). The article also details the fund’s benchmark exposure, saying IUSB tracks the Bloomberg U.S. Universal index and is based on market-value-weighted, USD-denominated taxable bonds.
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For SCHD, Summit Financial LLC owned 499,464 shares after purchasing 17,763 additional shares (ending value: $13,700,000). Bell Bank’s increase was especially large in the quarter: up 53.3% to 104,155 shares, after acquiring 36,212 more.
Summit Financial LLC made a broad push into exchange-traded funds during the fourth quarter of 2023, boosting stakes across U.S. large-cap stocks, international equities, bonds, semiconductors, and dividend strategies, according to Watchlist News. The Parsippany, N.J.-based firm, which manages roughly $12.24 billion in assets, filed its updated holdings with the SEC in January 2024.
The moves reflect a calculated bet on multiple market themes at once — capturing the AI chip boom while hedging with defensive income plays. Several peer firms made similar moves in the same quarter, confirming a broader institutional trend.
Summit Piles Into Large-Cap and Semiconductor ETFs
Summit's biggest percentage move was in the Schwab US Large-Cap ETF (SCHX), where it bought an additional 102,697 shares — a 19.6% jump — bringing its total to 626,200 shares valued at $16.85 million, per Watchlist News. SCHX tracks the 750 largest U.S. companies by market cap. It gives investors broad exposure beyond just the top handful of mega-cap names.
Summit also raised its position in the VanEck Semiconductor ETF (SMH) by 2.0%, reaching roughly $26.1 million in value. SMH is heavily weighted toward chipmakers like NVIDIA and Broadcom. That bet looked smart in early 2024, when NVIDIA's blowout earnings drove the semiconductor sector sharply higher.
Defensive Plays: Minimum Volatility and Dividend Income
On the defensive side, Summit grew its stake in the iShares MSCI EAFE Min Vol Factor ETF (EFAV) by 2.7%, adding 9,749 shares to reach 371,659 shares worth $32.06 million, according to Watchlist News. EFAV tracks international developed-market stocks chosen specifically for lower price swings. Seattle-based Brighton Jones LLC made an even bigger move, lifting its EFAV stake by 41.7% in a single quarter.
Summit also added to the Schwab US Dividend Equity ETF (SCHD), buying 17,763 more shares for a total of 499,464 shares worth $13.7 million. SCHD focuses on U.S. companies with long records of paying and growing dividends. Bell Bank of Fargo, N.D. made the most aggressive move in SCHD among peers — up 53.3% to 104,155 shares after buying 36,212 more in the quarter.
Bond Market Re-Entry as Interest Rates Near Their Peak
Summit raised its iShares Core Total USD Bond Market ETF (IUSB) position by 2.9%, adding 16,949 shares for a total of 598,936 shares valued at $27.87 million, per Watchlist News. IUSB tracks the Bloomberg U.S. Universal index — a broad basket of dollar-denominated taxable bonds. The timing was strategic: by late 2023, 10-year Treasury yields had briefly touched 5.0%, and many investors saw that as a peak. Locking in bond exposure at those yields made sense before rates began to fall.
The 2022 bond market crash — when both stocks and bonds fell together — had scared many advisors away from fixed income. Summit's Q4 move back into IUSB suggests growing confidence that the worst was over for bonds.
Peers Confirm the Trend With Their Own Big Buys
Summit was far from alone. Moneta Group Investment Advisors of St. Louis held a massive 35.8 million SCHX shares — worth $964 million — after increasing its position by 3.0% in the same quarter, according to Watchlist News. That makes Moneta one of the largest single holders of the ETF among advisory firms. AQR Capital and Qube Research, both known for data-driven investing, also added to EFAV, likely as a hedge against a U.S. economic slowdown.
Taken together, these moves point to a shared playbook among institutional advisors heading into 2024: own the AI chip rally via SMH, stay broad in U.S. stocks via SCHX, protect against a downturn with EFAV and SCHD, and lock in bond yields with IUSB. Summit's Q4 filings show a firm trying to benefit from growth while keeping a cushion against risk.
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