Sei Investments Reduces ETF Stakes
Sei Investments Trims Stakes in Key ETFs, Including VTIP, Amid Q1 Portfolio Adjustments
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Key Points
1
In VTIP, Sei sold 3,991,379 shares during Q1, reducing its stake by 41.1% to 5,727,635 shares and leaving the position valued at about $286.111 million.
2
In SCHA, Sei reduced its stake by 24,324 shares in Q1, ending with 14,734,817 shares worth about $428.491 million.
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In SCHV, Sei sold 1,014,616 shares in Q1, bringing holdings to 44,768,506 shares and a value of roughly $1.365 billion.
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In SCHO, Sei reduced its stake by 1,859,555 shares in Q1, leaving 16,741,000 shares valued at about $406.304 million; the ETF opened at $24.05, with a 52-week range of $24.04 to $24.46 and a 50-day moving average of $24.11.
Sei Investments slashed its stake in the Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) by 41.1% in the first quarter of 2026, selling 3,991,379 shares and leaving it with 5,727,635 shares worth about $286 million, according to Watchlist News.
The move was part of a broader trimming across several core ETFs. Sei cut positions in short-term Treasuries, small-cap stocks, and large-cap value funds — while still holding billions in total across those holdings.
VTIP Stake Cut Nearly in Half in One Quarter
VTIP is an ETF that holds short-term bonds tied to inflation. When inflation expectations fall, investors often reduce holdings in funds like VTIP. Sei's 41.1% cut was the sharpest reduction it made across any single ETF in Q1, according to Ticker Report.
Before the sale, Sei held about 9.7 million VTIP shares. After selling just under 4 million, the remaining 5.7 million shares were valued at $286.1 million. That's still a large position — but far smaller than where it started the year.
Treasury and Small-Cap ETF Trims Were Much Smaller
Sei also cut its position in the Schwab Short-Term U.S. Treasury ETF (SCHO) by 10%, selling 1,859,555 shares. It ended Q1 with 16,741,000 shares worth about $406.3 million. SCHO opened at $24.05 and has traded in a tight 52-week range of $24.04 to $24.46, according to Ticker Report.
The cuts in small-cap and large-cap value ETFs were much smaller. Sei trimmed its Schwab U.S. Small-Cap ETF (SCHA) stake by just 24,324 shares — less than 0.2% — ending with 14,734,817 shares worth $428.5 million. Its Schwab U.S. Large-Cap Value ETF (SCHV) position dropped by 1,014,616 shares, landing at 44,768,506 shares valued at roughly $1.37 billion.
Sei Still Holds Billions Despite the Portfolio Pruning
Even after all the cuts, Sei's ETF positions remain massive. Its SCHV stake alone is worth over $1.3 billion. Its SCHA and SCHO positions each top $400 million. These aren't exits — they're small adjustments to very large holdings.
The VTIP cut stands out because it was so large relative to the others. A 41.1% reduction signals a real change in view — likely that Sei expects inflation pressures to ease. The rest of the moves look more like routine rebalancing than a major strategic shift.
What the 13F Filing Tells Us About Sei's Strategy
These moves come from Sei's Form 13F filing with the Securities and Exchange Commission (SEC). Every big fund manager must file a 13F each quarter. It shows what stocks and ETFs they owned at the end of the period, according to Ticker Report.
The filings show Sei is trimming inflation-linked and short-term fixed-income exposure while holding steady in equities. That pattern suggests the firm may see less risk of rising inflation ahead — or simply wants to free up cash by cutting its lowest-yielding bond positions.
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