Strategic ETF Growth
Sequent Planning LLC Significantly Boosts Stakes in Diverse ETFs During Q1
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Key Points
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AGG accounts for about 7.0% of Sequent Planning LLC's investment portfolio, making it the firm's largest holding by portfolio share.
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LPL Financial LLC increased its stake in Franklin Dynamic Municipal Bond ETF (FLMI) by 27.4% in the 4th quarter, now holding 4,806,634 shares.
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Putnam Focused Large Cap Growth ETF (PGRO) has a market cap of about $108.08 million, a price-earnings ratio of 38.61, and a beta of 1.17.
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FT Vest U.S. Equity Enhance & Moderate Buffer ETF – January (XJAN) opened at $38.22, with a 50-day moving average of $38.04 and a 200-day moving average of $37.17.
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In addition to Sequent’s activity, other big holders boosted AGG previously, including Bank of America, which raised its stake 16.0% to 53,737,402 shares, and Raymond James, up 7.0% to 84,760,819 shares in the latest period.
Sequent Planning LLC made sweeping moves in its Q1 2024 portfolio, boosting stakes across four major ETFs in a single filing period. The Omaha-based investment firm — managing roughly $589 million in assets — nearly quadrupled its position in one buffer ETF while pushing its bond holdings to new highs, according to SEC EDGAR.
The biggest shift: Sequent raised its stake in the iShares Core U.S. Aggregate Bond ETF (AGG) by 11.4%, bringing its total to 291,946 shares worth about $28.98 million. That makes AGG the firm's single largest holding, at roughly 7% of its entire portfolio.
A Near-Quadruple Bet on Downside Protection
The most dramatic move was in the FT Vest U.S. Equity Enhance & Moderate Buffer ETF – January (XJAN). Sequent grew that position by 273.6%, from roughly 10,000 shares to 38,066 shares, now worth about $1.375 million. XJAN is a "defined outcome" ETF — it shields investors from the first 15% of market losses in exchange for capping upside gains.
Assets in buffer ETFs like XJAN have surged from $5 billion in 2018 to over $181 billion by end of 2024, according to Morningstar. Kirsten Chang, senior analyst at VettaFi, says advisors are now "baking risk management into the base layer of the portfolio" rather than treating it as optional, as reported by Financial Advisor IQ.
Municipal Bonds Attract Big Money as Tax-Exempt Yields Shine
Sequent also boosted its stake in the Franklin Dynamic Municipal Bond ETF (FLMI) by 44.3%, reaching 117,826 shares worth about $2.921 million. The firm was not alone. LPL Financial, the nation's largest independent broker-dealer, had already raised its own FLMI stake by 27.4% in Q4 2023, bringing its total to 4,806,634 shares, per SEC EDGAR.
The appeal is clear. VanEck analysts noted that in Q1 2024, "tax-exempt munis surpassed comparable taxable fixed income" despite rate volatility, according to VanEck. However, DWS analysts warned that Q1 municipal weakness was "technical rather than fundamental," driven by a record $50 billion in new supply in March alone — not by falling demand.
Large-Cap Growth Stake Climbs Nearly 30%
Sequent also raised its position in the Putnam Focused Large Cap Growth ETF (PGRO) by 29.3%, reaching 101,539 shares worth about $4.091 million — roughly 1% of its portfolio. PGRO is a relatively small fund, with a market cap of about $108.08 million. It carries a price-to-earnings ratio of 38.61 and a beta of 1.17, meaning it swings harder than the broader market.
That beta is worth noting. At 1.17, PGRO moves about 17% more than the S&P 500 in either direction. Paired with the defensive XJAN position, the two bets seem to offset each other — growth exposure on one side, loss protection on the other.
AGG Leads Portfolio as Big Institutions Keep Buying Bonds
Sequent's AGG position — now worth $28.98 million — is its largest single holding. It is not alone in piling in. Bank of America raised its AGG stake by 16% to 53,737,402 shares. Raymond James increased its position by 7% to 84,760,819 shares, per Morningstar. Morningstar retains a "Gold" Medalist Rating on AGG, calling it a "steady" and "low cost" core building block for long-term portfolios.
Still, critics point to risks in Sequent's overall shift. Buffer ETFs like XJAN charge around 0.85% annually, compared to about 0.03% for plain index funds, according to Alpha Architect. If markets rally sharply beyond XJAN's cap, Sequent's clients will not capture those extra gains — a real cost in a strong bull market.
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