LJI Wealth Sells $8M in Small-Cap Growth ETFs

by

Life is what happens while you’re busy selling shares. LJI Wealth Management did just that-dumping 34,737 of Vanguard Russell 2000 Growth ETF (VTWG) shares for $7.7 million in their Q3 filing. You know, because nothing says “discipline” like cutting ties with a fund that’s up 16% in a year. Or maybe it’s just the universe shrugging.

What Happened

According to the SEC, LJI trimmed its VTWG stake by 34,737 shares in the third quarter. The trade, based on average pricing, totaled $7.7 million. They still hold 37,211 shares, which is like keeping a dog you’re not sure you love but won’t abandon. So it goes.

What Else to Know

VTWG now makes up 1.5% of LJI’s $572.8 million U.S. equity AUM. Their top holdings? ITOT, SLQD, ONEQ, VTI, IWM-names that sound like they belong in a spreadsheet, not a Shakespeare play. These are the financial equivalent of a well-worn pair of shoes: reliable, boring, and occasionally laced with regret.

As of Wednesday’s close, VTWG shares sat at $241.12. That’s a 16% gain over 12 months, but still trails the S&P 500’s 18.5%. Progress! If you believe in progress.

ETF Overview

Metric Value
AUM $1.3 billion
Price (as of market close Wednesday) $241.12
Yield 0.5%
1-year price change 16%

ETF Snapshot

  • VTWG tracks the Russell 2000 Growth Index, offering exposure to small-cap U.S. growth stocks. It’s like a buffet where the main course is hope.
  • The ETF mirrors the index’s composition, investing “substantially all assets” in constituent stocks. A noble goal, if your idea of fun is replicating spreadsheets.
  • It targets investors seeking capital appreciation with minimal income distribution. In other words, it’s for those who trust the market to throw them a bone eventually.

Vanguard’s VTWG is a passive vehicle for small-cap growth, suitable for those who believe in the alchemy of compounding. If you’re not in a hurry to get rich, this might be your kind of ride.

Foolish Take

LJI’s move is a masterclass in tactical retreat. They sold VTWG shares and trimmed their PDP stake, pivoting toward broader ETFs like ITOT and VTI. Now, these account for over a third of their AUM. It’s the financial equivalent of trading a sports car for a minivan-practical, but less fun on the highway.

The firm’s commentary reminds clients that “markets are undefeated over time.” A poetic way of saying, “Don’t panic, even when the numbers make you want to.” Their strategy? Diversify, rebalance, and ignore the siren song of narrow market segments. Because nothing says “long-term discipline” like selling a 16% winner. Or maybe it’s just the market’s way of whispering, “You’ll never win, but you can lose slowly.”

Glossary

ETF: An investment fund traded on exchanges. It’s like a mutual fund with better fashion sense.

Russell 2000 Growth Index: Tracks small-cap U.S. companies with growth potential. Think of it as the stock market’s underdog team.

Passively managed: A strategy that mimics an index. It’s the financial world’s version of a mirror.

Index-replicating strategy: Investing to mirror an index. Like copying homework, but legally.

Constituent stocks: The companies that make up an index. The ones who show up to the party but don’t know anyone.

Dividend yield: Annual dividends as a percentage of price. A number that rarely makes sense.

Capital appreciation: The increase in an investment’s value. A fancy word for “not losing money.”

AUM: Assets Under Management. The total value of everything you own. Or, as some might call it, “the burden of responsibility.”

Form 13F: A quarterly SEC filing. It’s like a tax return, but for institutional investors.

Reportable AUM: Assets that must be disclosed. The stuff you can’t hide from Uncle Sam.

Stake: Ownership interest. A term that makes selling shares sound romantic.

Read More

2025-10-30 14:53