Clearwater Capital's Q1 ETF Moves
Clearwater Capital Broadly Adjusts Q1 ETF Holdings Across Tech, Small Caps, Fixed Income
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Key Points
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ROM: Clearwater’s new ProShares Ultra Technology position is complemented by market and security metrics showing ROM opened at $137.75, with a 50-day moving average of $145.42 and a 200-day MA of $112.61; the fund’s 12-month high/low are $171.82 and $71.36, respectively, and it carries a market cap around $1.19 billion with a P/E of 38.02 and a beta of 2.71.
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SPMB: Clearwater cut its stake by 29.2% in SPDR Portfolio Mortgage Backed Bond ETF, selling 97,592 shares in the quarter and ending with 236,435 shares valued at about $5.294 million; the shares opened at $21.99 with a 50-day MA of $22.19 and a 200-day MA of $22.38, sitting within a one-year range of $21.80 to $22.87.
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SMLF: Clearwater increased its stake to 479,209 shares of iShares U.S. Small Cap Equity Factor ETF, up 2.4% for the quarter; the holding accounts for about 2.9% of Clearwater’s portfolio and is roughly the ETF’s 12th-largest holding, valued at about $36.18 million.
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SOXL: Clearwater disclosed a new position in Direxion Daily Semiconductors Bull 3x Shares of 16,513 shares, valued at about $791,000; in context, SOXL opened at $160.99, with a 50-day MA of $206.34 and a 200-day MA of $120.47, and it has a beta of 5.66 and a 12-month price range spanning roughly $22.57 to $302.
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LMBS: Clearwater increased its stake in First Trust Low Duration Opportunities ETF by 6.6% to 909,130 shares, valued at about $45.28 million; LMBS now makes up roughly 3.7% of Clearwater’s portfolio and stands as the 8th-largest holding.
Clearwater Capital Advisors LLC made sweeping changes to its ETF portfolio in the first quarter, opening new positions in leveraged tech and semiconductor funds while adjusting its fixed income and small-cap holdings, according to Watchlist News and Ticker Report.
The firm's moves span four major asset classes — technology, semiconductors, small caps, and bonds. Its largest disclosed holdings now include $45.28 million in a low-duration bond ETF and $36.18 million in a small-cap equity fund.
Clearwater Opens New Bets on Tech and Semiconductors
Clearwater entered two new positions in high-risk, leveraged funds. It bought 4,031 shares of ProShares Ultra Technology (ROM), worth about $316,000, according to Watchlist News. ROM is a 2x leveraged tech ETF. It carries a beta of 2.71, meaning it moves roughly 2.7 times as much as the broader market. The fund's 12-month range runs from $71.36 to $171.82.
The firm also disclosed a new stake in Direxion Daily Semiconductors Bull 3x Shares (SOXL) — a fund that aims to deliver triple the daily return of a semiconductor index. Clearwater bought 16,513 shares, valued at about $791,000. SOXL has a beta of 5.66 and a wild 12-month price range of roughly $22.57 to $302, according to Watchlist News.
Firm Trims Mortgage Bond Stake by Nearly 30%
Clearwater cut its position in the SPDR Portfolio Mortgage Backed Bond ETF (SPMB) by 29.2% in the quarter. It sold 97,592 shares, ending with 236,435 shares worth about $5.29 million, according to Watchlist News. The move signals a retreat from mortgage-backed securities, which are bonds tied to home loans.
SPMB is a low-volatility fixed income fund. It opened at $21.99 during the period and has stayed in a tight one-year range of $21.80 to $22.87. The cut stands out as one of the firm's largest percentage reductions across any single holding this quarter.
Small-Cap and Low-Duration Bond Positions Grow Larger
While Clearwater pulled back on mortgage bonds, it leaned into small-cap stocks. The firm raised its stake in iShares U.S. Small Cap Equity Factor ETF (SMLF) by 2.4%, reaching 479,209 shares valued at about $36.18 million. SMLF now makes up roughly 2.9% of Clearwater's portfolio and ranks as its 12th-largest holding, according to Watchlist News.
Clearwater also grew its position in First Trust Low Duration Opportunities ETF (LMBS) by 6.6%, bringing its total to 909,130 shares worth about $45.28 million. LMBS is now the firm's 8th-largest holding, representing 3.7% of its portfolio. Low-duration bond funds are less sensitive to interest rate changes than longer-term bond funds.
Mid-Cap and Short-Duration Bond Holdings Also Expanded
Beyond the headline moves, Clearwater raised its stake in Schwab U.S. Mid-Cap ETF (SCHM) by 3.6% in the first quarter, bringing its total to 473,011 shares, according to Ticker Report. Mid-cap stocks sit between large blue-chip companies and smaller growth firms, often seen as a balance between stability and upside.
The firm also boosted its iShares Short Duration Bond Active ETF (NEAR) position by 6.6%, making it Clearwater's largest single holding, Ticker Report reported. Taken together, the quarter's moves suggest Clearwater is layering high-risk leveraged bets on top of a stable core of short-term and low-duration bonds.
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