Polaris's Strategic Growth Shift
Polaris Investment Advisors Reduces Gold Exposure, Increases Equity Growth ETFs
Key Points
IAU accounted for about 1.2% of Polaris Investment Advisors LLC's holdings and was its 21st largest holding after the first-quarter trim.
AQR Capital Management LLC increased its stake in iShares Gold Trust by 47.0% in the first quarter, now owning 26,936 shares valued at approximately $1.588 million.
EFG makes up about 1.6% of Polaris's portfolio and is Polaris's 18th largest holding, with holdings worth roughly $2.248 million as of the latest quarter.
IVW traded with notable market data: opened at $133.46 on Friday, with a 12-month low of $107.97 and a high of $141.98, and a market capitalization around $72.33 billion, P/E of 33.33, and beta of 1.17.
Polaris Investment Advisors LLC cut its gold holdings by 38.3% in the first quarter of 2026, selling 11,486 shares of the iShares Gold Trust (IAU) and ending the period with 18,528 shares worth about $1.63 million. The Framingham, Massachusetts-based firm simultaneously made aggressive bets on growth, expanding its international equity position by 270.9% and lifting its U.S. growth ETF stake to nearly $9.4 million, according to Fintel.
The moves, disclosed in a May 13 SEC filing, show a clear pivot. Polaris moved money out of a defensive gold position and into domestic and international growth funds at a moment when gold was already pulling back from a January peak of $104.40 per share, per Barchart.
Polaris Trims Gold After January's Record High
Gold had a strong run into early 2026. IAU hit a 52-week high of $104.40 on January 29, riding a wave of global uncertainty and debt concerns. But by late June, the price had slipped to around $75.34 — a drop of nearly 28% from that peak, according to Barchart.
Analysts at Quiver Quantitative called Polaris's sale a "profit-taking maneuver" after that January peak. By trimming IAU to just 1.2% of its total portfolio — its 21st largest holding — Polaris signaled a shift from defense to offense. Not every firm agreed with that call. AQR Capital Management went the other way, boosting its IAU stake by 47.0% in the same quarter to 26,936 shares worth roughly $1.59 million.
Growth ETFs Fill the Gap Left by Gold
Polaris put its money into two growth funds. It raised its stake in the iShares S&P 500 Growth ETF (IVW) by 5.9%, reaching 82,910 shares worth about $9.38 million. That makes IVW Polaris's third-largest position. IVW opened at $133.46 on Friday and carries a beta of 1.17, meaning it tends to move more than the broader market, per BlackRock.
The bigger swing was in international stocks. Polaris grew its position in the iShares MSCI EAFE Growth ETF (EFG) by 270.9%, ending Q1 with 20,185 shares worth about $2.25 million — now its 18th largest holding. According to Citywire, investors are increasingly looking at non-U.S. markets for growth as valuations for large domestic tech companies get stretched.
Gold as a Core Holding: Polaris Bucks the Trend
Polaris's gold trim puts it at odds with a broader advisor trend. State Street Global Advisors argued at the Exchange 2026 conference that gold should make up 3% to 5% of a portfolio to guard against currency debasement. Polaris's 1.2% gold allocation sits well below that threshold. Todd Rosenbluth, head of research at TMX VettaFi, noted that "advisors are moving gold from tactical positions into core strategic allocations," making Polaris's cut look contrarian.
Bernie Horn, Polaris's president and portfolio manager, has publicly noted that high valuations are "setting up a rotation that favors value-minded investors," per MoneyLife. Yet the firm's actual trades tell a different story — doubling down on growth ETFs even as Horn talks up value. That gap between words and trades is worth watching heading into Q2 reporting.
What the Rebalancing Signals for the Rest of 2026
Polaris manages roughly $217 million in assets and serves high-net-worth clients, according to FINTRX. Its Q1 moves show a firm that uses passive ETFs in an active way — rapidly shifting allocations across themes. The 270% jump in EFG alone reflects a major tactical call, not a small tweak.
The broader market backdrop adds weight to these moves. PLANADVISER reported that iShares saw $16 billion in net inflows in a single day during late June rebalancing, while Vanguard and SPDR faced heavy redemptions. Polaris's shift toward iShares growth funds puts it squarely in line with that institutional flow — even as a minority of firms like AQR quietly buy more gold on the other side of the trade.
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