Adjusting U.S. Stock Exposure - 06/16/25

Trading
Written By Chris Gauthier, CFA - Chief Investment Officer

Portfolio Adjustments

 

    • Diversified Portfolios

      • Current Stock Exposure: 92%

      • Benchmark Stock Exposure: 85%

      • Sell: -3% iPath Bloomberg Commodity Total Return ETN (DJP), -2.5% VanEck Gold Miners ETF (GDX)

      • Buy: +5.5% GMO U.S. Quality ETF (QLTY)

    • CarbonLITE Portfolios

      • Current Stock Exposure: 92%

      • Benchmark Stock Exposure: 85%

      • Sell: -3% iPath Bloomberg Commodity Total Return ETN (DJP), -2.5% VanEck Gold Miners ETF (GDX)

      • Buy: +3.5% Vanguard ESG U.S. Stock ETF (ESGV), +2% iShares MSCI ACWI Low Carbon Target ETF (CRBN)

    • ETF-Only Portfolios

      • Current Stock Exposure: 92%

      • Benchmark Stock Exposure: 85%

      • Sell: -3% iPath Bloomberg Commodity Total Return ETN (DJP), -2.5% VanEck Gold Miners ETF (GDX)

      • Buy: +5.5% GMO U.S. Quality ETF (QLTY)

    • Diversified Portfolios

      • Current Stock Exposure: 61.5%

      • Benchmark Stock Exposure: 60%

      • Sell: -3% iPath Bloomberg Commodity Total Return ETN (DJP), -2.5% VanEck Gold Miners ETF (GDX)

      • Buy: +5.5% GMO U.S. Quality ETF (QLTY)

    • CarbonLITE Portfolios

      • Current Stock Exposure: 61.5%

      • Benchmark Stock Exposure: 60%

      • Sell: -3% iPath Bloomberg Commodity Total Return ETN (DJP), -2.5% VanEck Gold Miners ETF (GDX)

      • Buy: +3.5% SSGA SPDR S&P 500 Fossil Fuel Free ETF (SPYX), +2% iShares MSCI ACWI Low Carbon Target ETF (CRBN)

    • ETF-Only Portfolios

      • Current Stock Exposure: 61.5%

      • Benchmark Stock Exposure: 60%

      • Sell: -3% iPath Bloomberg Commodity Total Return ETN (DJP), -2.5% VanEck Gold Miners ETF (GDX)

      • Buy: +5.5% GMO U.S. Quality ETF (QLTY)

    • Diversified Portfolios

      • Current Stock Exposure: 26.5%

      • Benchmark Stock Exposure: 30%

      • Sell: -2% iPath Bloomberg Commodity Total Return ETN (DJP), -1% Vanguard Intermediate-Term Treasury ETF (VGIT)

      • Buy: +2% GMO U.S. Quality ETF (QLTY), +1% iShares MSCI USA Momentum Factor ETF (MTUM)

    • CarbonLITE Portfolios

      • Current Stock Exposure: 26.5%

      • Benchmark Stock Exposure: 30%

      • Sell: -2% iPath Bloomberg Commodity Total Return ETN (DJP), -1% Vanguard INtermediate-Term Treasury ETF (VGIT)

      • Buy: +3% iShares MSCI ACWI Low Carbon Target ETF (CRBN)

    • ETF-Only Portfolios

      • Current Stock Exposure: 26.5%

      • Benchmark Stock Exposure: 30%

      • Sell: -2% iPath Bloomberg Commodity Total Return ETN (DJP), -1% Vanguard Intermediate-Term Treasury ETF (VGIT)

      • Buy: +2% GMO U.S. Quality ETF (QLTY), +1% iShares MSCI USA Momentum Factor ETF (MTUM)

We wanted to provide you with a quick update on the recent changes within your portfolio and the rationale behind them.

We are reducing our underweight position in U.S. stocks as our risk modeling indicates a more favorable environment for risk assets.

Key factors driving this decision:

  • Technical Strength: The S&P 500 has reclaimed both its 50-day and 200-day moving averages. Historically, when the index holds above these levels for an extended period, it tends to experience continued positive price performance. (Past performance is not indicative of future results)

Source: StockCharts.com

  • Broadening Market Participation: More individual U.S. stocks are now trading above their own moving averages, signaling strengthening momentum across the market.

Source: StockCharts.com

While these improvements are encouraging, market conditions remain volatile. Investor sentiment continues to react sharply to social media developments and ongoing uncertainties around tariffs and budgets.

We will continue to monitor these trends and adjust our positioning accordingly.

You will receive a trade confirmation from Charles Schwab reflecting these transactions. If you'd like to walk through these trades or discuss the positioning in more detail, we are happy to schedule a time to talk.

We're here to help you stay grounded, informed, and positioned for the long term—even when the market isn’t making it easy.

Warm Regards,
SCM Investment Committee

Chris Gauthier, CFA - Chief Investment Officer

I joined Stonehearth Capital Management in June 2013, bringing with me 15 years of investment management experience, working with both institutional and individual investors. As the Chief Investment Officer, I am responsible for setting the firm's overall investment policy and strategy including directing our asset allocation, investment risk, research, and portfolio management functions.

Prior to transitioning to Stonehearth, I was a partner at a startup U.S. Long/Short equity Absolute return hedge fund. I began my career at Putnam Investments, where I was a member of the Multi-Cap Growth team responsible for managing over $7 billion in assets, including 15 separately managed accounts. I earned my Chartered Financial Analyst (CFA) charter in 2004 and became a member of the Boston Security Analyst Society (BSAS).

I currently reside in Gloucester with my wife Jen and three children, Elizabeth, Sean, and Ryan. Outside of the office, I can be found in and around Cape Ann, enjoying the outdoors with my family or scuba diving off the coast.

https://www.stonehearthcapital.com/team
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Reintroducing Equity Exposure on Improving Trend Signals - 05/09/25