Strategic Reallocation: Converting Recent Gains into Better Long-Term Positioning - 06/10/2026
Portfolio Adjustments
-
Diversified Portfolios
Current Stock Exposure: 89.5%
Benchmark Stock Exposure: 85%
Sell: -5% VLUE: iShares MSCI USA Value Factor ETF
Buy: +5% SCHD: Schwab U.S. Dividend Equity ETF
CarbonLITE Portfolios
Current Stock Exposure is 89.5%
Benchmark Stock Exposure is 85%
No Trades
ETF-Only Portfolios
Current Stock Exposure: 89.5%
Benchmark Stock Exposure: 85%
Sell: -5% VLUE: iShares MSCI USA Value Factor ETF
Buy: 5% SCHD: Schwab U.S. Dividend Equity ETF
-
Diversified Portfolios
Current Stock Exposure: 59%
Benchmark Stock Exposure: 60%
Sell: -5% BSIIX: Blackrock Strategic Income Opportunities Fund
Sell: -3% VLUE: iShares MSCI USA Value Factor ETF
Buy: +5% EVTR: Eaton Vance Total Return Bond ETF
Buy: +3% SCHD: Schwab U.S. Dividend Equity ETF
CarbonLITE Portfolios
Current Stock Exposure: 59%
Benchmark Stock Exposure: 60%
Sell: -5% BSIIX: Blackrock Strategic Income Opportunities Fund
Buy: +5% EVTR: Eaton Vance Total Return Bond ETF
ETF-Only Portfolios
Current Stock Exposure: 59%
Benchmark Stock Exposure: 60%
Sell: -7.5% TOTL: State Street SPDR DoubleLine Total Return Tactical ETF
Sell: -3% VLUE: iShares MSCI USA Value Factor ETF
Buy: +7.5% EVTR: Eaton Vance Total Return Bond ETF
Buy: +3% SCHD: Schwab U.S. Dividend Equity ETF
-
Diversified Portfolios
Current Stock Exposure: 29%
Benchmark Stock Exposure: 30%
Sell: -5% HSNIX: Hartford Strategic Income Fund
Sell: -3% BSIIX: Blackrock Strategic Income Opportunities Fund
Buy: +4% EVTR: Eaton Vance Total Return Bond ETF
Buy: +4% VPLS: Vanguard Core-Plus Bond ETF
CarbonLITE Portfolios
Current Stock Exposure: 29%
Benchmark Stock Exposure: 30%
Sell: -5% HSNIX: Hartford Strategic Income Fund
Sell: -3% BSIIX: Blackrock Strategic Income Opportunities Fund
Buy: +4% EVTR: Eaton Vance Total Return Bond ETF
Buy: +4% VPLS: Vanguard Core-Plus Bond ETF
ETF-Only Portfolios
Current Stock Exposure: 29%
Benchmark Stock Exposure: 30%
Sell: -9% TOTL: State Street SPDR DoubleLine Total Return Tactical ETF
Sell: -4% LQD: iShares iBoxx $ Investment Grade Corporate Bond ETF
Sell: -2% HFSI: Hartford Strategic Income ETF
Buy: +8% EVTR: Eaton Vance Total Return Bond ETF
Buy: +7% VPLS: Vanguard Core-Plus Bond ETF
We wanted to take a moment to share some recent adjustments we have made across our portfolios and the thinking behind them. These changes reflect our ongoing commitment to managing risk, capturing gains opportunistically, and ensuring your portfolio remains well-positioned in today's environment.
We have trimmed our position in the iShares MSCI USA Value Factor ETF (VLUE) and reallocated those proceeds into the Schwab U.S. Dividend Equity ETF (SCHD). Here is why:
• VLUE has had a significant run, appreciating roughly 83% over the past year, a level we believe warrants disciplined profit-taking.
• The fund has become heavily concentrated in technology, with Micron Technology (MU) alone representing 20% of the portfolio, joined by Cisco as the next largest position which creates a risk profile that no longer supports its current portfolio weight.
• SCHD offers what we believe is a cleaner expression of traditional value investing as it targets high-quality, dividend-paying U.S. companies with consistent track records of returning capital to shareholders, screened for financial strength.
• The reallocation meaningfully reduces our technology sector concentration while adding durable income and better mandate alignment.
On the fixed income side, we have reduced our exposure to the BlackRock Strategic Income Opportunities Fund (BSIIX) and the Hartford Strategic Income Fund (HSNIX). With the proceeds we initiated new positions in the Eaton Vance Total Return Bond ETF (EVTR) & the Vanguard Core-Plus Bond ETF (VPLS). The rationale:
• BSIIX & HSNIX both carry meaningful credit risk given their unconstrained mandate across maturities and geographies.
• In the current rate environment, we prefer to moderate that exposure in favor of a more traditional core fixed income approach.
• The move improves our fixed income quality profile and provides a lower expense ratio and trading fees through the ETF structure.
These changes are consistent with our broader portfolio philosophy: take gains when the market gives them to you, actively manage concentration risk, and ensure both your equity and fixed income allocations reflect sound fundamentals rather than momentum drift.
As always, please do not hesitate to reach out if you have questions or would like to discuss how these changes apply to your specific account.
Warm regards,
SCM Investment Committee
