Scarborough's Q1 ETF Strategy
Scarborough Advisors Boosts ETF Stakes, Adds New Positions in Q1 Across Bonds and Equities
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Key Points
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Scarborough boosted its Vanguard Total International Bond ETF (BNDX) stake by 890% in the first quarter, bringing its position to 260,423 shares after purchasing 234,118 more; the holding accounts for about 1.4% of Scarborough’s portfolio and was worth roughly $12.5 million at quarter’s end.
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Scarborough opened a new position in Franklin U.S. Treasury Bond ETF (FLGV) in the first quarter, purchasing 27,157 shares for about $555,000, representing roughly 0.06% of the fund at the end of the quarter.
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Scarborough raised its stake in First Trust Rising Dividend Achievers ETF (RDVY) by 16.7% in the first quarter to 227,307 shares, making RDVY about 1.7% of Scarborough’s holdings and its 20th biggest position with a value around $15.5 million.
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Scarborough trimmed its iShares MSCI USA Momentum Factor ETF (MTUM) by 9.9% in the quarter to 66,962 shares, leaving MTUM at about 1.8% of Scarborough’s portfolio and its 19th-largest holding.
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Scarborough initiated a new stake in iShares Core S&P Mid-Cap ETF (IJH) with 111,290 shares valued at roughly $7.5 million; institutional ownership of IJH stands at about 14.6%, and the ETF opened around $75.54 with trading near its 50- and 200-day moving averages.
Scarborough Advisors LLC made sweeping changes to its ETF portfolio in the first quarter of 2026, deploying tens of millions of dollars into international bonds and dividend stocks while pulling back on U.S. momentum plays. The firm's most dramatic move was a 890% surge in its Vanguard Total International Bond ETF (BNDX) stake, adding 234,118 shares to reach a total position worth roughly $12.5 million, according to Ticker Report.
The Annapolis, Maryland-based adviser filed its Q1 2026 Form 13F with the SEC on May 7, disclosing 761 positions valued at about $913.6 million. The quarter-end snapshot shows a firm leaning into fixed income and dividend value while trimming its biggest momentum bet.
BNDX Stake Jumps 890% as Bond Bets Multiply
Scarborough's biggest Q1 move was in Vanguard Total International Bond ETF (BNDX). The firm bought 234,118 additional shares, pushing its total to 260,423 shares worth about $12.5 million. That makes BNDX roughly 1.4% of the firm's total portfolio, per Ticker Report. BNDX uses hedging to neutralize currency swings, giving Scarborough exposure to non-U.S. investment-grade bonds without added currency risk.
Scarborough also opened a brand-new position in Franklin U.S. Treasury Bond ETF (FLGV), buying 27,157 shares for about $555,000. That stake represents roughly 0.06% of the fund. Together, these moves signal a deliberate push into fixed income outside the U.S. market, likely to guard against domestic interest rate swings.
Dividend ETF RDVY Climbs to $15.5 Million as Momentum Bet Gets Cut
Scarborough raised its stake in First Trust Rising Dividend Achievers ETF (RDVY) by 16.7% in Q1, adding 32,494 shares to reach 227,307 total. The position is now worth about $15.5 million and ranks as the firm's 20th-largest holding at 1.7% of its portfolio, according to Ticker Report. RDVY's largest sector weight is financials at roughly 31%, making it less exposed to high-priced tech stocks.
At the same time, Scarborough trimmed its iShares MSCI USA Momentum Factor ETF (MTUM) by 9.9%, selling about 7,400 shares to land at 66,962 total. MTUM is still the firm's 19th-largest holding at 1.76% of the portfolio, valued near $16.1 million. Analysts see the trim as a tactical move to lock in gains on growth stocks that may face valuation pressure.
New $7.5 Million Mid-Cap Bet Rounds Out the Quarter
Scarborough opened a fresh $7.5 million position in iShares Core S&P Mid-Cap ETF (IJH), buying 111,290 shares. IJH tracks mid-sized U.S. companies — firms past their early growth stage but still below the mega-cap tier. Institutional investors own about 14.6% of IJH, and the ETF opened near $75.54 at the time of reporting, trading close to both its 50-day and 200-day moving averages, per Watchlist News.
The mid-cap bet keeps Scarborough anchored in U.S. stocks while sidestepping the premium prices attached to S&P 500 giants. Combined with its new bond positions and expanded dividend holdings, the IJH stake reflects the firm's stated philosophy: "Protect First. Grow second."
Why 13F Data Has Real Limits for Outside Investors
Scarborough's disclosures come with an important caveat. Under SEC Rule 13f-1, firms have up to 45 days after a quarter ends to file. That means the data published in May reflects positions held on March 31 — not today. The firm could have already sold or resized any of these positions before the public ever saw them.
The firm manages $1.64 billion in discretionary assets and operates across five managing partners, including Gregory Ostrowski, Shawn Walker, and Ian Arrowsmith — all of whom joined in 1999 and completed a private equity buyout of the firm in 2013. The Q1 moves add to a broader pattern of diversification, with Scarborough also buying new stakes in iShares MSCI ACWI ex U.S. ETF (ACWX) for roughly $7.7 million and boosting Invesco S&P 500 Revenue ETF (RWL) by 9.6% to a $30.4 million position, per Ticker Report.
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