This Wealth Firm Just Sold $8 Million in Small-Cap Stocks — Here’s Why
Key Points
Indiana-based LJI Wealth sold 34,737 shares of VTWG for an estimated $7.7 million in the third quarter.
The transaction value represents about 1.3% in reportable assets at quarter's end.
Following the sale, LJI reported holding 37,211 shares of VTWG valued at $8.7 million.
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LJI Wealth Management disclosed the sale of 34,737 shares of the Vanguard Russell 2000 Growth ETF (NASDAQ:VTWG) for $7.7 million in its SEC filing for the period ended September 30.
What Happened
According to a Securities and Exchange Commission (SEC) filing released on Wednesday, Indiana-based LJI Wealth Management reduced its position in the Vanguard Russell 2000 Growth ETF (NASDAQ:VTWG) by selling 34,737 shares in the third quarter. The estimated trade size, based on the average share price for the quarter, was approximately $7.7 million. The firm’s remaining position in VTWG was 37,211 shares at the end of the period.
What Else to Know
LJI Wealth Management, LLC’s sale brings the VTWG stake to 1.5% of its $572.8 million reportable U.S. equity AUM based on Form 13F data for the period.
Top holdings after the filing:
- NYSEMKT:ITOT: $166.4 million (29.1% of AUM)
- NASDAQ:SLQD: $58.6 million (10.2% of AUM)
- NASDAQ:ONEQ: $30 million (5.2% of AUM)
- NYSEMKT:VTI: $27.5 million (4.8% of AUM)
- NYSEMKT:IWM: $26.6 million (4.6% of AUM)
As of Wednesday's market close, shares were priced at $241.12, up 16% over the past year and lagging the S&P 500's 18.5% return in the same period.
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 seeks to track the performance of the Russell 2000 Growth Index, providing exposure to small-cap U.S. growth equities through a passively managed, index-replicating strategy.
- The ETF holds a diversified portfolio that mirrors the composition and weighting of the underlying index, investing substantially all assets in constituent stocks.
- It targets institutional and individual investors seeking capital appreciation with minimal income distribution, offering access to the small-cap growth segment of the U.S. equity market.
The Vanguard Russell 2000 Growth ETF offers institutional investors targeted access to U.S. small-cap growth equities by replicating the Russell 2000 Growth Index. Its passive investment approach and low dividend yield make it suitable for those seeking capital appreciation with minimal income distribution.
Foolish Take
LJI Wealth Management’s latest filing shows a clear rotation out of higher-volatility small-cap growth names amid a strong rebound in the third quarter. The Indianapolis-based firm sold 34,737 shares of the Vanguard Russell 2000 Growth ETF (VTWG), an estimated $7.7 million reduction, while also trimming its Invesco DWA Momentum ETF (PDP) stake. Together, the two moves signal a tactical cooling on momentum and small- and mid-cap exposure in favor of steadier, broad-market ETFs like ITOT and VTI, which now account for more than a third of total assets.
The firm’s recent commentary underscores its data-driven approach, reminding clients that markets “are undefeated over time.” Rather than chasing recent rallies, LJI appears focused on maintaining long-term discipline—leaning into diversification while reducing exposure to narrower market segments that can swing more sharply during volatility.
For long-term investors, the message is simple: Managing risk doesn’t require retreating from equities. Instead, it’s about rebalancing when valuations stretch and sentiment tilts toward greed.
Glossary
ETF (Exchange-Traded Fund): An investment fund traded on stock exchanges, holding a basket of assets like stocks or bonds.
Russell 2000 Growth Index: A stock market index tracking small-cap U.S. companies with higher growth potential.
Passively managed: Investment strategy aiming to replicate an index's performance, rather than actively selecting securities.
Index-replicating strategy: Approach where a fund invests to mirror the composition and performance of a specific index.
Constituent stocks: The individual companies that make up a stock market index.
Dividend yield: Annual dividends paid by a fund or stock, expressed as a percentage of its current price.
Capital appreciation: Increase in the value of an investment or asset over time.
AUM (Assets Under Management): The total market value of assets a financial institution manages on behalf of clients.
Form 13F: A quarterly SEC filing by institutional investment managers disclosing their equity holdings.
Reportable AUM: Portion of assets under management that must be disclosed in regulatory filings.
Stake: The ownership interest or number of shares held in a particular investment.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Vanguard Total Stock Market ETF. The Motley Fool has a disclosure policy.
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