Hughes Financial Services, LLC

2. Key Holdings

The portfolio is highly concentrated in its top positions, which are dominated by broad market and strategic beta ETFs.

• Top Position: The largest holding is the SPTM (State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF), accounting for 21.36% of the total portfolio ($134.28M). This indicates a strong conviction in total U.S. market performance.
• Fixed Income & International: The second and third positions, JCPB (JPMorgan Core Plus Bond ETF) at 9.87% and JIRE (JPMorgan International Research Enhanced Equity ETF) at 9.61%, suggest a balanced approach incorporating core fixed income and international equity exposure.
• Strategic Tilts: The manager utilizes specific factor ETFs to drive returns. Notably, the EMXC (iShares MSCI Emerging Markets Ex China ETF) represents 8.47% of the portfolio, demonstrating a deliberate overweight in emerging markets while explicitly avoiding China risk. Additionally, the JPMorgan U.S. Tech Leaders ETF and QUAL (iShares MSCI USA Quality Factor ETF) combine for nearly 15% of the portfolio, reflecting a tilt toward quality and technology sectors.
• Individual Equities: Individual stock positions are minimal in comparison to the ETF core. The largest individual holding is Apple Inc. (AAPL), comprising only 0.35% of the portfolio, reinforcing the view that the firm relies on funds for primary market exposure rather than stock picking.

3. Sector Allocation

The sector breakdown reveals a modern, multi-asset allocation strategy that transcends traditional sector classifications due to the heavy use of ETFs.

• ETF Dominance: The "ETF" classification is the overwhelming majority at $496.20M, serving as the primary vehicle for equity and fixed income beta.
• Technology: Direct technology exposure totals $4.18M (0.66%), though this figure likely understates the true tech exposure, as the top holdings include Tech-heavy ETFs such as the JPMorgan U.S. Tech Leaders ETF ($51.23M).
• Financials & Consumer Cyclicals: These are the next most significant direct equity sectors, with $2.64M and $1.10M respectively.
• Defensive Sectors: The allocation includes niche defensive plays via specific bond ETFs, such as VTES (Vanguard Short-Term Tax Exempt Bond ETF) and JMUB (JPMorgan Municipal ETF), as well as utilities like Dominion Energy ($522.55K).
• Geographic Diversification: A significant portion of the "ETF" allocation is dedicated to international and emerging markets (e.g., JIRE, EMXC, VEU), suggesting a strong global diversification mandate.