Sellwood's Vanguard ETF Strategy
Sellwood Investment Partners Expands Vanguard ETF Holdings, Rebalancing Portfolio in Q1
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Key Points
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Sellwood’s stake in Vanguard ESG U.S. Stock ETF (ESGV) represents about 0.34% of the ETF, with a reported value of roughly $37.66 million after adding 11,292 shares in the quarter.
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ESGV tracks the FTSE USA All Cap Choice index and was launched on September 18, 2018, with Vanguard as the fund manager.
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Several other hedge funds increased their Vanguard FTSE Developed Markets ETF (VEA) positions in late 2023, including Nova Wealth Management (+151.5% to 420 shares), Ulland Investment Advisors (+75.6% to 562 shares), and Quaker Wealth Management (+7,637.5% to 619 shares), with Strategic Wealth Advisors and Strategic Advocates also adding positions.
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Vanguard Extended Market ETF (VXF) also saw notable activity: AQR Capital Management increased its stake by 45.8% to 7,065 shares, and Caldwell Trust Co boosted its position by 717.4% to 3,768 shares, with VXF trading near $244.18 on the day reported.
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Vanguard Total Stock Market ETF (VTI) remains a focus of allocation changes, with institutional investors and hedge funds owning about 28.92% of the stock overall, as Sellwood trimmed its stake by 21.7% in the period.
Sellwood Investment Partners LLC made a series of notable moves in its Vanguard ETF holdings during the first quarter of 2026, boosting its ESG position by 3.5% to 335,411 shares — worth roughly $37.66 million — while opening a brand-new stake in international markets and slashing its core U.S. stock exposure. The Portland-based investment advisor now holds Vanguard ESG U.S. Stock ETF (ESGV) as its second-largest position, representing about 14.8% of its entire portfolio, according to MarketBeat.
The moves signal a deliberate shift away from mega-cap-heavy U.S. stocks and toward ESG screening, mid- and small-cap companies, and international developed markets. Sellwood trimmed its Vanguard Total Stock Market ETF (VTI) stake by 21.7% to just 9,502 shares while growing its Vanguard Extended Market ETF (VXF) position by 50.3% to 12,468 shares, per SEC Form 13F filings submitted in May 2026.
ESGV Becomes Sellwood's Anchor Holding
Sellwood added 11,292 shares of ESGV during Q1, bringing its total to 335,411 shares. That stake equals roughly 0.34% of the entire fund, making Sellwood one of its more significant institutional holders. ESGV tracks the FTSE USA All Cap Choice Index. It screens out tobacco, thermal coal, and firearms companies while still covering a broad slice of the U.S. equity market. Vanguard launched the fund in September 2018, according to Vanguard.
The 14.8% portfolio weighting is a strong signal about Sellwood's clients. Firms that put that much weight in an ESG fund are typically serving institutional endowments or high-net-worth individuals who want "values-aligned" investing, analysts note. This comes even as anti-ESG legislation has spread across several U.S. states, suggesting West Coast advisors are treating ESG as a risk tool, not just a political stance, according to MarketBeat.
Selling Big-Cap Giants, Buying the Rest of the Market
The sharpest strategic move was Sellwood's swap of VTI for VXF. VTI is heavily weighted toward mega-cap tech names like Apple, Microsoft, and Nvidia. VXF tracks the S&P Completion Index — meaning it holds only the mid- and small-cap stocks that are left out of the S&P 500. By trimming VTI by 21.7% and boosting VXF by 50.3%, Sellwood is essentially betting on smaller companies to "catch up," according to Morningstar.
Sellwood is not alone in this move. AQR Capital Management — the global firm founded by Cliff Asness — also raised its VXF stake by 45.8% to 7,065 shares in the same period. Caldwell Trust Co went even further, growing its VXF position by 717.4% to 3,768 shares. VXF was trading near $244.18 on the day those figures were reported, per MarketBeat. The parallel moves suggest a broader institutional tilt toward smaller U.S. companies.
Sellwood Opens Fresh Bet on International Developed Markets
Sellwood also opened a brand-new position in Vanguard FTSE Developed Markets ETF (VEA), buying 39,888 shares worth about $2.56 million. That makes VEA its 17th largest holding and about 1% of its portfolio. VEA gives exposure to stocks in Europe, Japan, and other developed economies outside the U.S. Institutional advisors often shift into VEA when the U.S. dollar looks like it may be peaking, making international dividends and valuations more attractive, according to Defense World.
Other smaller firms made similar international pivots. Nova Wealth Management raised its VEA stake by 151.5% to 420 shares. Ulland Investment Advisors grew its position by 75.6% to 562 shares. Quaker Wealth Management made the most dramatic jump — up 7,637.5% to 619 shares. Defense World noted that more attractive price-to-earnings ratios in Europe and Japan, compared to the U.S., are driving the trend.
Critics Question Whether the New Mix Is Just VTI in Disguise
Not everyone sees Sellwood's reshuffling as clever. Some analysts argue that combining ESGV with VXF essentially recreates VTI — but with more moving parts. ESGV already covers a large chunk of the U.S. market. VXF covers the rest. Together, they approximate total U.S. market exposure, but with higher internal turnover and potential tax consequences for clients. Critics on Seeking Alpha have called the structure "unnecessary complexity."
The bullish counterargument is that the split gives Sellwood real control. It can dial up or down the ESG filter and the small-cap tilt independently, something a single VTI position does not allow. Institutional investors — including hedge funds — own about 28.92% of all outstanding VTI shares, per SEC aggregate 13F data, so any meaningful shift by a firm like Sellwood carries weight in how that ownership picture evolves heading into Q3 2026.
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