Financial Engines Cuts iShares Tech ETF Stake: What’s Next?

Financial Engines Advisors L.L.C. decided to take a little break from their iShares Future Exponential Technologies ETF (XT) position, trimming it by $127.13 million. Because who doesn’t love a good strategic retreat?

What happened

Financial Engines sold 1,452,015 shares of XT during Q3 2025. Because nothing says “I’m diversified” like selling a chunk of your tech ETF. The move slashed the fund’s position value by $127.13 million. Which, if you’re a fund manager, is like losing your phone but also your entire life savings.

XT now accounts for 4.55% of the firm’s $52.39 billion in U.S. equity assets. Which, in fund manager terms, is like bringing a water gun to a gunfight.

What else to know

Financial Engines’ top holdings after the filing: SPYV, SPMB, SCHF, VUG, and IGIB. Because nothing says “I’m a serious investor” like a mix of S&P 500, mortgage bonds, and corporate bonds.

Shares are priced at $74.89, up 21% over the past year. Outperforming the S&P 500 by 13 percentage points. Because nothing says “I’m a winner” like beating the market by a landslide.

The ETF’s shares are only 1% below their 52-week high. Which is like being 1% away from a gold medal in a race you already won.

ETF overview

Metric	Value
AUM	$3.63 billion
Price (as of market close 11/14/25)	$74.89
1-year total return	20.89%
Dividend yield	0.61%

ETF snapshot

XT tracks a subset of the Morningstar Global Markets Index. Because if you can’t be the whole thing, at least be a part of it. Rules-based approach: because who needs a human when you can have a spreadsheet?

With a market cap of $3.63 billion and a 21% return, XT is the financial equivalent of a “I’m not lazy, I’m just in energy-saving mode” vibe.

XT’s rules-based approach and diversified portfolio structure position it as a strategic tool for institutional investors seeking to capitalize on long-term growth opportunities in sectors driven by rapid technological advancements. Or, as I like to call it, “the ETF version of a 20-year-old’s LinkedIn post.”

Foolish take

Financial Engines selling over $100 million? That’s like me selling a $100 bill. But don’t worry, investors. It’s just a small drop in the bucket. XT is still their 7th-largest position. Because nothing says “I’m diversified” like having 7th place.

The reason XT’s allocation grew from 4.5% to 4.6%? Its share price skyrocketed. After dipping to $50 during the April sell-off, it rebounded to $75. Which is like getting a 50% raise after a week of being fired.

Financial Engines might’ve just taken profits on a hot stock. All while keeping their portfolio balanced. Because nothing says “I’m a genius” like selling a winner but still holding the majority.

From a long-term perspective, XT has lagged the S&P 500 by two percentage points since 2015. And its 0.46% expense ratio? That’s more than the cost of a latte. But hey, at least it’s not as bad as some other ETFs.

Glossary

ETF (Exchange-Traded Fund): An investment fund traded on stock exchanges, holding a basket of assets like stocks or bonds. 13F reportable assets under management (AUM): The total value of U.S. equity holdings that an institutional investment manager must report quarterly to the SEC. Exposure: The degree to which an investor or fund is invested in a particular asset, sector, or market. Dividend yield: Annual dividends paid by an investment, expressed as a percentage of its current price. Rules-based approach: An investment strategy that follows predetermined, systematic criteria for selecting and weighting assets. Liquid: Easy to buy or sell in the market without significantly affecting the asset’s price. Cost-efficient: Involving lower fees or expenses relative to similar investment options. Portfolio structure: The composition and allocation of assets within an investment fund. Institutional investors: Organizations such as pension funds, endowments, or asset managers that invest large sums of money. Transformative technologies: Innovations that significantly alter industries or create new markets. Morningstar Global Markets Index: A benchmark index tracking the performance of global developed and emerging market equities. Quarter-end trade: A transaction executed near or at the end of a fiscal quarter, often for reporting purposes.

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2025-12-05 04:52