What This Fund’s $180 Million Treasury Bet Signals to Long-Term Investors

Nevada-based Peavine Capital disclosed a purchase of 194,700 shares of the iShares 7-10 Year Treasury Bond ETF in an SEC filing for the period ended September 30.

What Happened

According to a filing with the Securities and Exchange Commission (SEC) released on October 21, Peavine Capital increased its stake in the iShares 7-10 Year Treasury Bond ETF (NASDAQ:IEF) by 194,700 shares during the third quarter. The estimated transaction value, based on the quarter's average price, was about $18.6 million. At quarter-end, the fund reported holding nearly 1.9 million IEF shares worth $180.8 million.

What Else to Know

Peavine's IEF stake now accounts for 37.3% of 13F reportable assets under management.

Top holdings after the filing:

• NYSEMKT:SPY: $199.4 million (41.2% of AUM)
• NASDAQ:IEF: $180.8 million (37.3% of AUM)
• NYSEMKT:SGOV: $95.8 million (19.8% of AUM)
• NASDAQ:AAPL: $5.1 million (1.1% of AUM)
• NYSE:CAT: $1.3 million (0.3% of AUM)

As of Monday's market close, shares of IEF were priced at $97.49, up 2.7% over the past year, compared to an 18% gain for the S&P 500.

ETF Overview

ETF Snapshot

• IEF's investment strategy seeks to track the performance of U.S. Treasury bonds with maturities between 7 and 10 years, providing targeted exposure to intermediate-term government debt.
• The portfolio is composed primarily of U.S. Treasury securities, with at least 90% of assets in government bonds, ensuring high credit quality and liquidity.
• Structured as an ETF, the fund offers investors efficient access to the U.S. Treasury market and regular income distributions.

The iShares 7-10 Year Treasury Bond ETF (IEF) provides targeted exposure to intermediate-term U.S. Treasury securities. It has substantial assets under management and a focus on high-credit-quality government bonds. Its strategy and structure offer access to the U.S. Treasury market,

Foolish Take

Peavine Capital’s increased bet on Treasuries underscores a clear shift toward safety and stability. The move brings Peavine’s total IEF position to 1.9 million shares worth $180.8 million, now accounting for 37.3% of its reportable assets.

Notably, Peavine’s only other meaningful additions this quarter were in iShares Treasury ETFs and the S&P 500 ETF Trust (SPY)—a clear signal of a barbell strategy: pairing safe-haven bonds with broad market equity exposure. Together, SPY and IEF now make up nearly 80% of Peavine’s total holdings, a conservative allocation positioning the firm to weather both rate and equity volatility.

IEF, which tracks Treasuries maturing between seven and 10 years, offers an average 3.9% yield to maturity, 7-year duration, and 0.15% expense ratio—providing investors with a steady income stream and downside protection. For long-term investors, Peavine’s posture reflects a classic late-cycle playbook: locking in yields and maintaining equity exposure through low-cost, diversified ETFs.

Glossary

ETF (Exchange-Traded Fund): An investment fund traded on stock exchanges, holding assets like stocks or bonds.

Assets Under Management (AUM): The total market value of assets a fund or investment manager oversees on behalf of clients.

13F reportable assets: Securities that institutional investment managers must disclose quarterly to the SEC if managing over $100 million.

Dividend yield: The annual dividend income expressed as a percentage of the investment's current price.

Total return: The investment's price change plus all dividends and distributions, assuming those payouts are reinvested.

Intermediate-term: Refers to bonds or investments with maturities typically between 5 and 10 years.

U.S. Treasury securities: Debt instruments issued by the U.S. government to finance its operations, considered low risk.

Liquidity: How quickly and easily an asset can be bought or sold without affecting its price.

Credit quality: An assessment of a bond issuer's ability to repay debt, with higher quality indicating lower risk.

Income distributions: Payments made by funds to investors, usually from interest, dividends, or capital gains.

Position: The amount of a particular security or asset held by an investor or fund.

Stake: The ownership interest or holding in a particular security or company.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and iShares Trust - iShares 0-3 Month Treasury Bond ETF. The Motley Fool has a disclosure policy.