This Fund Cashed Out $8 Million from a Tech ETF — Here’s What It Bought Instead

On Tuesday, C2P Capital Advisory Group, which conducts business as Prosperity Capital Advisors, disclosed selling 33,127 shares of QQQM for an estimated $7.8 million during the quarter ended September 30.

What Happened

According to a Securities and Exchange Commission (SEC) filing released on Tuesday, Prosperity Capital Advisors reduced its position in the Invesco NASDAQ 100 ETF (NASDAQ:QQQM) by 33,127 shares during the third quarter. The estimated value of the shares sold was $7.8 million based on the average share price over the quarter.

What Else to Know

The sale decreased QQQM’s weighting in the portfolio to 0.66% of reportable AUM.

Top holdings after the filing:

• NYSEMKT:DFAC: $155.3 million (9% of AUM)
• NYSEMKT:SPLG: $125.7 million (7.3% of AUM)
• NYSEMKT:DCOR: $65.1 million (3.8% of AUM)
• NYSEMKT:DFAX: $57.7 million (3.3% of AUM)
• NYSEMKT:VUG: $52.2 million (3% of AUM)

As of Monday's market close, shares were priced at $258.58, up 27% over the past year and well outperforming the S&P 500's 18% gain in the same period.

ETF Overview

ETF Snapshot

• The Invesco NASDAQ 100 ETF seeks to track the performance of the Nasdaq-100 Index, investing at least 90% of assets in the index's constituent securities to provide exposure to 100 of the largest nonfinancial companies listed on the Nasdaq Stock Market.
• The ETF provides a passively managed structure for investors seeking broad-based exposure to leading companies through a single vehicle.
• The fund is non-diversified, concentrating holdings in a limited number of companies.

The Invesco NASDAQ 100 ETF (NASDAQ:QQQM) provides access to the Nasdaq-100 Index, which includes 100 of the largest nonfinancial companies traded on Nasdaq. The fund invests in these companies and is non-diversified.

Foolish Take

Prosperity Capital Advisors’ sale of Invesco NASDAQ 100 ETF (QQQM) shares this quarter appears to be part of a broader effort to rebalance equity exposure after a strong year for tech. The firm sold 33,127 shares, trimming more than half of the position and reducing QQQM’s weight to 0.7% of reportable AUM, according to the SEC filing.

The sale coincided with notable adjustments across the portfolio. While Prosperity pared back high-growth positions like QQQM, it added to Vanguard Total International Bond ETF (BNDX)—a move that suggests a defensive tilt amid still-elevated rates and a maturing equity cycle. QQQM, which tracks the NASDAQ-100 Index, remains heavily weighted toward large-cap tech leaders such as Nvidia, Microsoft, and Apple, sectors that have driven much of the market’s gains.

With QQQM up nearly 24% year over year, outperforming the S&P 500’s 18% gain, the decision seemingly reflects classic profit-taking and diversification. For long-term investors, Prosperity’s shift underscores the importance of maintaining balance between growth and stability—harvesting gains in tech while reinforcing fixed-income exposure through global bond funds like BNDX as rate and valuation risks persist.

Glossary

13F reportable assets: Assets that institutional investment managers must disclose quarterly to the Securities and Exchange Commission (SEC), showing holdings in certain securities.

AUM (Assets under management): The total market value of investments managed by a fund or investment firm on behalf of clients.

ETF (Exchange-traded fund): An investment fund traded on stock exchanges, holding a basket of assets like stocks or bonds.

Portfolio weighting: The percentage of a portfolio's total value allocated to a specific asset or holding.

Dividend yield: Annual dividends paid by an investment, expressed as a percentage of its current price.

Total return: The investment's price change plus all dividends and distributions, assuming those payouts are reinvested.

Passively managed: An investment strategy aiming to replicate the performance of a specific index rather than actively selecting securities.

Non-diversified: A fund that invests in a limited number of securities, increasing exposure to individual holdings.

Constituent securities: The individual stocks or assets that make up an index or fund.

Outperforming: Achieving a higher return than a specified benchmark or index over a given period.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Vanguard Index Funds - Vanguard Growth ETF. The Motley Fool has a disclosure policy.