Innealta's Regional ETF Rebalance
Innealta Capital Reduces Key International ETF Stakes as Others Reallocate Regional Exposure
Anonymous
Key Points
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After trimming EWQ by 42.3% in Q1, Innealta still held 26,393 EWQ shares valued at about $1.145 million, indicating a smaller yet still meaningful France ETF exposure.
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Major banks boosted France ETF exposure in recent quarters, with Bank of America Corp DE increasing its EWQ stake by 392.7% in the 3rd quarter and Morgan Stanley up 17.0% in the 4th quarter.
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New Singapore ETF positions emerged in Q1 from lenders, including Fifth Third Bancorp and HSBC Holdings, each opening new stakes in EWS.
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Innealta's Taiwan ETF position declined 70.7% to 5,771 shares (worth about $409,000) in Q1.
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Harbour Investments Inc. boosted its holdings in the Hong Kong ETF (EWH) by 461.0% in Q4, signaling notable activity in Hong Kong exposure among institutions.
Innealta Capital LLC made sweeping cuts to its international ETF holdings in the first quarter of 2025, slashing positions in funds tied to France, Singapore, Taiwan, and Hong Kong. The firm's most dramatic move was a 84.2% reduction in its Singapore ETF stake, according to Watchlist News.
The cuts signal a clear pullback from Asia-Pacific and European developed market exposure. Yet even after trimming, several positions remained worth hundreds of thousands to over a million dollars, suggesting a recalibration rather than a full exit.
Innealta Slashes Taiwan and Singapore Stakes Most Aggressively
The deepest cuts came in Asia. Innealta sold down its iShares MSCI Singapore ETF (EWS) by 84.2% and its iShares MSCI Taiwan ETF (EWT) by 70.7%, per Watchlist News. The Taiwan position shrank to just 5,771 shares worth about $409,000. The Singapore stake fell to a fraction of its former size.
Hong Kong did not escape cuts either. Innealta trimmed its iShares MSCI Hong Kong ETF (EWH) by 44.5%. That came even as Harbour Investments Inc. moved in the opposite direction, boosting its own EWH stake by 461.0% in the fourth quarter of last year.
France ETF Cut by 42%, but Innealta Holds On
Innealta sold 19,326 shares of the iShares MSCI France ETF (EWQ) in Q1, cutting its position by 42.3%, according to Ticker Report. The firm still held 26,393 shares worth about $1.145 million, showing it did not abandon France entirely.
Other big players were actually buying France exposure during this stretch. Bank of America grew its EWQ stake by 392.7% in Q3 of last year. Morgan Stanley added another 17.0% in Q4. Innealta's retreat stands out against that bullish backdrop.
China ETF Also Hit as Peru Position Surges
Innealta's cuts were not limited to Europe and Hong Kong. The firm slashed its iShares China Large-Cap ETF (FXI) stake by 85.8% in Q1, leaving it with just 7,610 shares, per Watchlist News. That is a near-total exit from Chinese large-cap exposure.
At the same time, Innealta made a sharp pivot toward Latin America. It grew its iShares MSCI Peru ETF (EPU) stake by 233.9% in Q1, building a position worth $1.68 million, according to Ticker Report. The move suggests the firm is rotating toward emerging markets in a different region rather than pulling back entirely.
Other Institutions Move In as Innealta Moves Out
While Innealta was selling, other firms were opening new positions. Fifth Third Bancorp and HSBC Holdings both started fresh stakes in the iShares MSCI Singapore ETF (EWS) in Q1, per Watchlist News. That divergence shows institutions do not all read the same regional outlook the same way.
Millburn Ridgefield also made notable adjustments in related ETFs during the period. The varied moves across institutions point to a broader reshuffling of regional bets in early 2025. Analysts tracking ETF flows in these funds may see the activity as a useful read on where large money managers think risk and opportunity sit.
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