Large Block Sale: Investment Manager Sells $14.7 Million Worth of Bond ETF
Key Points
Exited 176,949 shares of SHY, with an estimated transaction value of $14.66 million based on quarterly average pricing
Post-trade, the fund holds zero shares of SHY, valued at $0
The position was previously 3.9% of the fund's AUM.
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On October 20, 2025, McElhenny Sheffield Capital Management, LLC disclosed in an SEC filing that it sold out its entire position in iShares Trust - iShares 1-3 Year Treasury Bond ETF (NASDAQ:SHY), an estimated $14.66 million trade for the quarter ended September 30, 2025.
What Happened
According to a filing with the Securities and Exchange Commission dated October 20, 2025, McElhenny Sheffield Capital Management, LLC sold its entire holding of 176,949 shares in SHY. The estimated value of the sale, based on the average share price for the quarter, was approximately $14.66 million. The fund now reports no exposure to SHY.
What Else to Know
The fund fully exited its SHY position, which previously made up 3.9% of assets under management; it now represents 0% of reported AUM.
Top holdings after the filing:
- MSMR: $101.54 million (24.1% of AUM) as of September 30, 2025
- TQQQ: $70.60 million (16.7% of AUM) as of September 30, 2025
- QQQ: $57.74 million (13.7% of AUM) as of September 30, 2025
- SPY: $38.84 million (9.2% of AUM) as as of September 30, 2025
- ITA: $22.81 million (5.4% of AUM) as of September 30, 2025
As of October 20, 2025, shares of SHY were priced at $83.10.
ETF Overview
| Metric | Value |
|---|---|
| Price (as of market close 10/20/25) | $83.10 |
| Dividend yield | 3.87% |
| 1-year total return | 4.82% |
ETF Snapshot
Seeks to track the investment results of an index composed of U.S. Treasury bonds with maturities between one and three years, focusing on short-term government debt securities.
Portfolio is primarily allocated to U.S. Treasury obligations, with at least 90% of assets invested in these securities to closely mirror the underlying index's composition.
Structured as a passively managed ETF with a transparent portfolio, it is designed for investors seeking access to short-duration Treasuries.
The iShares 1-3 Year Treasury Bond ETF (SHY) provides exposure to short-term U.S. Treasury securities. With a market capitalization of over $24.28 billion as of October 20, 2025, the fund has a significant asset base.
SHY's strategy emphasizes capital preservation and minimal interest rate risk by focusing on government bonds with maturities between one and three years.
Foolish Take
The recent sale by McElhenny Sheffield of $14.7 million worth of SHY shares resembles portfolio management rather than a shift in sentiment. Here's why.
SHY is a short-term bond ETF. It is designed to deliver stability and a return consistent with a portfolio of short-term U.S. Treasury securities. And, over the last year, the ETF has generated a total return of 4.82%.
In the context of a large, professionally-managed portfolio, SHY can act as a safe-haven asset -- a place for professional money-managers to store value while they wait to deploy their assets to more lucrative -- and volatile -- assets like stocks.
Therefore, average investors should take this sale of SHY shares with a grain of salt. However, there is something they can learn from this sale: The SHY can act as a safe-haven for retail investors as well.
Its stability and low correlation to the stock market makes it an ideal ETF to consider for investors that are seeking to diversify their portfolios -- or looking for a short-term asset to park cash. The fund's 3.87% dividend yield is backed by U.S. Treasury securities and is far more stable than a value stock with similar dividend yield.
To sum up, this institutional sale isn't all that noteworthy -- but the SHY is an ETF that everyday investors can utilize to their advantage.
Glossary
Assets Under Management (AUM): The total market value of assets that an investment firm or fund manages on behalf of clients.
ETF (Exchange-Traded Fund): An investment fund traded on stock exchanges, holding assets like stocks or bonds.
Passively Managed ETF: A fund designed to track a specific index, with minimal buying and selling by managers.
Short-Duration Treasuries: U.S. government bonds with maturities typically between one and three years.
Dividend Yield: The annual dividends paid by an investment, 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.
Portfolio Allocation: The distribution of a fund's assets among different investments or asset classes.
Capital Preservation: An investment strategy focused on preventing loss of principal.
Interest Rate Risk: The potential for investment losses due to changes in prevailing interest rates.
Reportable U.S. Equity Holdings: U.S. stock positions that a fund must disclose in regulatory filings.
Trailing Twelve-Month (TTM) Dividend Yield: Dividend yield calculated using dividends paid over the past twelve months.
Transparent Portfolio: A fund structure where holdings are regularly disclosed to investors.
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Jake Lerch has positions in Invesco QQQ Trust. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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