Strategic Portfolio Rebalancing
Townsquare Capital Increases Stakes in Russell 1000 ETFs While Reducing S&P 500 Growth
Key Points
Townsquare Capital said its iShares Russell 1000 Value ETF (IWD) position is its 28th-largest holding and that institutional investors own 84.93% of the fund; the article also notes IWD’s beta (0.84) and P/E (18.83).
For iShares Russell 1000 Growth ETF (IWF), the report specifies Townsquare’s stake is its 4th-largest position and adds that hedge funds and other institutional investors own 75.33% of the ETF; it also cites IWF’s beta (1.16) and P/E (33.43).
Beyond the broad description of SPYG selling, the article identifies Townsquare’s SPDR Portfolio S&P 500 Growth ETF (SPYG) as its 23rd-largest holding and provides additional fund statistics, including a P/E of 32.28, beta of 1.17, and market capitalization of $50.20 billion.
Other SPYG investors added during the quarter: the article reports Allworth Financial LP increased its SPYG position by 8.7%, bringing its holdings to 12,384,946 shares valued at $1,321,474,000 after buying an additional 990,106 shares.
In IWF, the report adds granular details on other managers’ trades, including Concord Wealth Partners increasing its IWF stake by 210% to 62 shares (after adding 42 shares) and Simplex Trading LLC increasing by 22.5% to 4,553 shares (after adding 837 shares).
Townsquare Capital LLC made a bold bet on Russell 1000 indexes in the fourth quarter, more than doubling its stake in the iShares Russell 1000 Growth ETF (IWF) by 101.6% to 37,430 shares worth about $17.72 million, according to Ticker Report. The move made IWF the firm's fourth-largest holding, representing roughly 4% of its total portfolio.
At the same time, Townsquare slashed its position in the SPDR Portfolio S&P 500 Growth ETF (SPYG) by 73.1%, selling 137,770 shares and leaving just 50,775 shares valued at about $5.42 million, per Watchlist News.
Townsquare Doubles Down on Russell 1000 Growth and Value
Townsquare also raised its iShares Russell 1000 Value ETF (IWD) position by 122.7% during Q4, bringing its holding to 21,059 shares worth roughly $4.43 million, according to Watchlist News. That stake became the firm's 28th-largest holding, equal to about 1% of the portfolio. The two moves together suggest a deliberate shift toward broader Russell 1000 exposure across both growth and value styles.
Analysts describe this as a "barbell strategy." By holding both IWF and IWD simultaneously, Townsquare effectively builds a custom Russell 1000 position with its own style tilts. The firm is stepping away from the more concentrated S&P 500 growth model that SPYG tracks.
Why Russell 1000 Over S&P 500 Growth?
The switch from SPYG to IWF is more than a change in ticker. IWF holds roughly 386 stocks compared to about 230 in SPYG, giving broader exposure to mid-cap growth names. IWF carries a P/E of 33.43 and a beta of 1.16. SPYG is nearly identical on beta at 1.17 but has a slightly lower P/E of 32.28 and a much cheaper expense ratio of 0.04% versus IWF's 0.18%.
In late 2023, many institutional managers worried about extreme concentration in a handful of mega-cap tech stocks — the so-called "Magnificent Seven." Moving to the wider Russell 1000 Growth index gave firms like Townsquare access to a larger universe, reducing the risk of being hurt by a sharp drop in just a few names.
Other Institutions Split Between SPYG and IWF
Not every firm followed Townsquare's lead. Allworth Financial LP actually increased its SPYG position by 8.7% during the quarter, buying an additional 990,106 shares to reach 12,384,946 shares worth roughly $1.32 billion, per Ticker Report. JPMorgan Chase also continued to add to SPYG, signaling that large RIAs still prefer the S&P 500's blue-chip growth filter.
In IWF, several smaller firms were active buyers. Concord Wealth Partners grew its IWF stake by 210%, adding 42 shares to reach 62 total. Simplex Trading LLC raised its position by 22.5%, buying 837 shares to reach 4,553. J.Safra Asset Management and Zions Bancorporation also added to IWF during the period, according to Ticker Report.
Fund Ownership Levels and Key Statistics at a Glance
Institutional investors own 84.93% of IWD and 75.33% of IWF, according to Watchlist News. IWD trades at a P/E of 18.83 with a low beta of 0.84, making it the most defensive of the three ETFs. SPYG carries a total market cap of $50.20 billion. Townsquare's remaining SPYG stake is now its 23rd-largest holding, down sharply in size and portfolio weight after the Q4 sell-off.
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