SWEENEY & MICHEL, LLC: A Deep Dive into Their Q1 2023 13F Filing and Investment Philosophy

SWEENEY & MICHEL, LLC, a renowned investment management firm, has recently filed their 13F report for the first quarter of 2023, which ended on March 31st, 2023. The firm is known for its disciplined and long-term investment approach, focusing on creating wealth for its clients through a combination of strategic asset allocation, rigorous research, and prudent risk management. In this article, we will take a closer look at their investment philosophy and analyze their latest 13F filing, which reveals a diverse portfolio of 102 stocks with a total value of $188 million.

Introduction to SWEENEY & MICHEL, LLC

SWEENEY & MICHEL, LLC is an investment management firm that prides itself on its commitment to delivering superior risk-adjusted returns for its clients. The firm’s investment philosophy is grounded in the belief that long-term wealth creation is best achieved through a disciplined and patient approach to investing. By focusing on high-quality companies with strong fundamentals and attractive valuations, SWEENEY & MICHEL, LLC aims to generate consistent returns while minimizing downside risk.

The firm’s investment process is characterized by a combination of top-down macroeconomic analysis and bottom-up stock selection. This approach allows the firm to identify attractive investment opportunities across various sectors and industries, while also maintaining a keen awareness of the broader economic environment. Through rigorous research and analysis, SWEENEY & MICHEL, LLC seeks to uncover hidden value and capitalize on market inefficiencies, ultimately delivering superior returns for its clients.

Q1 2023 13F Filing Overview

SWEENEY & MICHEL, LLC’s 13F filing for the first quarter of 2023 reveals a diverse portfolio of 102 stocks, with a total value of $188 million. The top holdings in the portfolio were iShares Core Dividend Growth ETF (DGRO) at 8.91%, iShares Core S&P Total U.S. Stock Market ETF (ITOT) at 8.15%, and Vanguard International Dividend Appreciation ETF (VIGI) at 7.93%. These three positions represent a significant portion of the firm’s overall portfolio and reflect the firm’s focus on high-quality, dividend-paying companies.

In addition to these top holdings, the 13F filing also provides insight into the firm’s top three trades of the quarter. These trades highlight the firm’s active management approach and its ability to identify and capitalize on attractive investment opportunities.

Top Trade #1: iShares Core Dividend Growth ETF (DGRO)

The iShares Core Dividend Growth ETF (DGRO) was the top holding in SWEENEY & MICHEL, LLC’s portfolio, representing 8.91% of the total value. This ETF seeks to track the investment results of an index composed of U.S. equities with a history of consistently growing dividends. By investing in DGRO, the firm is expressing its confidence in the long-term growth potential of dividend-paying companies.

The focus on dividend growth is a key component of SWEENEY & MICHEL, LLC’s investment philosophy, as it believes that companies with a track record of consistently increasing dividends are more likely to exhibit strong financial health and generate sustainable returns for investors. By allocating a significant portion of its portfolio to DGRO, the firm is demonstrating its commitment to this investment strategy.

Top Trade #2: iShares Core S&P Total U.S. Stock Market ETF (ITOT)

The second-largest holding in SWEENEY & MICHEL, LLC’s portfolio was the iShares Core S&P Total U.S. Stock Market ETF (ITOT), representing 8.15% of the total value. This ETF aims to track the performance of the S&P Total Market Index, which includes all U.S. publicly traded equities. By investing in ITOT, the firm is gaining broad exposure to the U.S. stock market, which has historically delivered strong long-term returns.

This investment in ITOT reflects SWEENEY & MICHEL, LLC’s belief in the long-term growth potential of the U.S. economy and its commitment to maintaining a diversified portfolio. By allocating a significant portion of its assets to this ETF, the firm is able to participate in the growth of the U.S. stock market while also mitigating the risks associated with individual stock selection.

Top Trade #3: Vanguard International Dividend Appreciation ETF (VIGI)

The third-largest holding in SWEENEY & MICHEL, LLC’s portfolio was the Vanguard International Dividend Appreciation ETF (VIGI), representing 7.93% of the total value. This ETF seeks to track the performance of an index composed of international equities with a history of consistently growing dividends. By investing in VIGI, the firm is gaining exposure to high-quality, dividend-paying companies outside of the U.S.

This investment in VIGI highlights SWEENEY & MICHEL, LLC’s commitment to diversification and its belief in the long-term growth potential of international markets. By allocating a significant portion of its assets to this ETF, the firm is able to participate in the growth of international dividend-paying companies while also mitigating the risks associated with individual stock selection and currency fluctuations.

Conclusion

SWEENEY & MICHEL, LLC’s 13F filing for the first quarter of 2023 provides valuable insight into the firm’s investment philosophy and portfolio management approach. By focusing on high-quality, dividend-paying companies and maintaining a diversified portfolio, the firm aims to generate consistent returns while minimizing downside risk.

The top holdings in the portfolio, including DGRO, ITOT, and VIGI, reflect the firm’s commitment to this investment strategy and its belief in the long-term growth potential of both U.S. and international markets. As the firm continues to navigate the ever-changing investment landscape, its disciplined and patient approach to investing is likely to serve its clients well in the pursuit of long-term wealth creation.