Bank ETF Moves
First PREMIER Bank Rebalances Portfolio, Shifting Major ETF Positions in Q1
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Key Points
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Bank of America Corp DE lifted its stake in Vanguard FTSE All-World ex-US ETF (VEU) by 38.1% in the fourth quarter, now owning 33,091,149 shares worth about $2.434 billion.
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Sanders Capital LLC increased its VEU position by 184.8% in the third quarter, now holding 9,042,229 shares valued at roughly $645.344 million.
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Valpey Financial Services LLC boosted its VEU stake by 7,182.6% in the fourth quarter to 5,519,424 shares worth about $406.009 million.
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Apella Capital LLC grew its Dimensional Core Fixed Income ETF (DFCF) holdings by 69.3% in the first quarter to 4,408,477 shares, valued at approximately $188.198 million.
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RFG Advisory LLC increased its Pimco Total Return ETF (BOND) stake by 47.8% in the first quarter, to 282,970 shares valued at about $26.113 million.
First PREMIER Bank trimmed its stake in the Vanguard FTSE All-World ex-US ETF by 13.3% in the first quarter, ending with 45,372 shares worth about $3.4 million, according to MarketBeat. At the same time, the South Dakota regional bank nearly tripled its positions in two fixed-income ETFs, signaling a clear shift from international stocks toward income-generating bonds.
The bank's Pimco Total Return ETF stake jumped 269.1% to 11,805 shares, worth roughly $1.09 million. Its Dimensional Core Fixed Income ETF holding grew 220.4% to 41,185 shares, valued at about $1.74 million. The moves reflect a broader trend of institutional investors rotating into core bonds, according to SEC EDGAR.
First PREMIER Bets Big on Bonds Over International Stocks
First PREMIER Bank filed its Form 13F with the SEC on April 12, 2024, revealing the Q1 moves. CEO Dana Dykhouse has previously stressed the bank's "highly diversified" and "liquid balance sheet" as a defense against market swings. The Q1 shift fits that philosophy. Cutting international equity exposure while locking in bond yields suggests the bank is prioritizing income certainty over growth potential.
The Federal Reserve held rates at elevated levels through Q1 2024. That "higher for longer" stance made core bond ETFs attractive. Institutions could lock in solid yields before any anticipated rate cuts later in the year, according to YCharts. First PREMIER appears to have acted on exactly that logic.
Giant Institutions Pour Billions Into the Same International ETF
While First PREMIER trimmed its international exposure, larger players moved in the opposite direction. Bank of America Corp DE raised its Vanguard FTSE All-World ex-US ETF stake by 38.1% in Q4 2023, reaching 33,091,149 shares worth about $2.43 billion, according to MarketBeat. Valpey Financial Services LLC made an even more dramatic move, boosting its position by 7,182.6% to 5,519,424 shares worth $406 million.
Sanders Capital LLC was an early mover. It raised its VEU stake by 184.8% back in Q3 2023, ending with 9,042,229 shares valued at roughly $645.3 million. The VEU ETF tracks over 3,500 non-U.S. stocks and opened at about $82.52 per share at the time of reporting. Morningstar analyst Zachary Evens calls it a "Gold-rated" strategy for capturing international diversification efficiently, per Morningstar.
Active Bond ETFs Attract Heavy Institutional Money in Q1
First PREMIER was not alone in building bond positions. RFG Advisory LLC raised its Pimco Total Return ETF stake by 47.8% in Q1, reaching 282,970 shares worth about $26.1 million. BOND opened at roughly $92.35 per share. PIMCO portfolio managers Mohit Mittal and Dan Ivascyn have pushed active core bond management as a response to macro uncertainty, according to PIMCO.
Apella Capital LLC grew its Dimensional Core Fixed Income ETF holdings by 69.3% in Q1 to 4,408,477 shares, valued at about $188.2 million. Both DFCF and BOND are actively managed. That matters because active managers can adjust to interest rate changes faster than passive funds like the Vanguard Total Bond Market ETF, according to Morningstar.
Two Opposing Views on Where Markets Are Headed
The contrasting moves reveal two different bets. Big buyers of VEU like Bank of America and Sanders Capital argue that U.S. stocks are too concentrated in a handful of tech giants. They see international stocks as undervalued, especially if the U.S. dollar weakens. Morningstar's Christine Benz has noted that after 15 years of U.S. dominance, a reversal for non-U.S. assets can happen quickly, per Morningstar.
First PREMIER represents the other view. It favors yield certainty and capital preservation over the higher-risk growth case for international markets. By tripling down on BOND and DFCF, the bank is positioning for economic "normalization" — a world where interest rates stabilize and steady income beats chasing equity gains, according to MarketBeat.
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