Connecticut-based Apella Capital reported a buy of 45,223 shares of the Vanguard Russell 1000 ETF (VONE 1.05%) for an estimated $13.2 million in the third quarter.
What Happened
According to its SEC filing released on Friday, Apella Capital, LLC increased its position in the Vanguard Russell 1000 ETF by 45,223 shares during the third quarter. The transaction was valued at an estimated $13.2 million. Total VONE shares held after the trade reached 254,583, with a reported value of $76.3 million.
What Else to Know
Top five holdings after the filing:
- NYSEMKT:DFAC: $515 million (11.5% of AUM)
- NYSEMKT:DFSD: $194.1 million (4.3% of AUM)
- NYSEMKT:VTI: $151.5 million (3.4% of AUM)
- NYSEMKT:DFIC: $129.9 million (2.9% of AUM)
- NASDAQ:BND: $120.5 million (2.7% of AUM)
As of Monday, shares of VONE were priced at $304.71, up 15% over the past year and matching the S&P 500's gain over the same period.
ETF Overview
| Metric | Value |
|---|---|
| AUM | $9.7 billion |
| Price (as of Monday) | $304.71 |
| Dividend yield | 1.1% |
| 1-year total return | 17.7% |
ETF Snapshot
- Investment strategy: Seeks to track the performance of the Russell 1000 Index using a full replication approach, investing in large-cap U.S. equities in the same proportion as the index.
- Underlying holdings: Composed primarily of large-cap U.S. stocks, reflecting the sector and industry weights of the Russell 1000 Index.
- Expense structure: Structured as an index ETF with a focus on low-cost, passively managed exposure to the U.S. large-cap equity market.
Vanguard Russell 1000 ETF (VONE) provides investors with broad exposure to large-cap U.S. equities by tracking the Russell 1000 Index. The fund employs a passive, full-replication strategy to closely mirror the index’s composition and performance.
With a substantial asset base, VONE is designed for investors seeking diversified access to the U.S. large-cap equity market. Its competitive advantage lies in its scale and the transparency of its index-based approach.
Foolish Take
Apella Capital expanded its large-cap U.S. equity exposure last quarter by buying roughly $13.2 million of the Vanguard Russell 1000 ETF (NASDAQ: VONE)—a fund that mirrors about 90% of the U.S. stock market through a low-cost, full-replication strategy. The move fits Apella’s broader tilt toward diversified holdings, complementing positions like VTI and DFAC that already anchor much of its $4.5 billion portfolio.
The Russell 1000 Index has delivered a roughly 15% gain over the past year, roughly the same as the S&P 500’s return, with technology heavyweights such as NVIDIA, Microsoft, Apple, and Alphabet driving nearly 25% of VONE’s total net assets. For long-term investors, the ETF’s 0.07% expense ratio and broad diversification make it an efficient vehicle for core U.S. equity exposure.
Apella’s incremental buy comes amid its repositioning in fixed income—adding to Vanguard’s Total Bond Market ETF (BND) and Dimensional’s Global ex U.S. Core Fixed Income ETF (DFGX) while trimming from the Vanguard Total International Bond ETF (BNDX). For investors seeking scalable, transparent access to large-cap growth and value stocks, VONE remains a steady long-term anchor within a balanced portfolio.
Glossary
Assets Under Management (AUM): The total market value of investments managed on behalf of clients by a fund or firm.
13F reportable assets: Securities that institutional investment managers must disclose in quarterly SEC filings if holdings exceed $100 million.
ETF (Exchange-Traded Fund): An investment fund traded on stock exchanges, holding a basket of assets like stocks or bonds.
Full replication approach: An index-tracking strategy where the fund holds every security in the index in the same proportion.
Passive management: An investment strategy aiming to replicate the performance of a specific index rather than outperform it.
Index ETF: An ETF designed to track the performance of a specific market index by holding its components.
Dividend yield: Annual dividends paid by a fund or stock, expressed as a percentage of its current price.
Total return: The investment's price change plus all dividends and distributions, assuming those payouts are reinvested.
Large-cap: Refers to companies with a large market capitalization, typically over $10 billion.
