This Portfolio Cut $23 Million in T-Bills as Stocks Took Center Stage

On January 29, Focused Wealth Management reported selling 300,114 shares of the Vanguard 0-3 Month Treasury Bill ETF (NASDAQ:VBIL), an estimated $22.66 million transaction based on quarterly average pricing.

What happened

According to an SEC filing dated January 29, Focused Wealth Management reduced its holdings in Vanguard 0-3 Month Treasury Bill ETF (NASDAQ:VBIL) by 300,114 shares during the fourth quarter. The estimated value of shares sold was $22.66 million based on the fund’s quarterly average price. The fund ended the quarter with 8,506 shares of VBIL worth $641,642. The stake’s value shifted by $22.69 million, combining trading and price changes.

What else to know

VBIL represents just 0.07% of Focused Wealth Management’s 13F reportable assets, down from 2.48% in the prior quarter.

Top holdings after the filing:

• NYSEMKT: SPYG: $155,867,422 (16.6% of AUM)
• NYSEMKT: VTV: $130,043,252 (13.8% of AUM)
• NASDAQ: QQQ: $110,613,720 (11.7% of AUM)
• NASDAQ: VCIT: $45,823,633 (4.9% of AUM)
• NYSEMKT: VYM: $30,474,106 (3.2% of AUM)

As of January 28, VBIL shares were priced at $75.62, up 0.75% over the past year. The fund has a 30-day SEC yield of 3.6%.

ETF overview

ETF snapshot

• VBIL offers exposure to short-term U.S. Treasury bills with maturities of three months or less, tracking an index of investment-grade securities.
• The fund operates on a passive investment model, seeking to replicate the performance of its benchmark index through a sampling strategy and periodic portfolio rebalancing.
• It targets institutional and individual investors seeking low-risk, highly liquid fixed income solutions for capital preservation and cash management.

The Vanguard 0-3 Month Treasury Bill ETF provides investors with a low-risk vehicle for short-term capital allocation, leveraging a portfolio of U.S. Treasury bills with minimal credit risk and high liquidity. The fund's strategy is designed to closely track its benchmark index while maintaining operational efficiency through selective sampling of eligible securities. Its competitive advantage lies in its disciplined approach to risk management and cost-effective exposure to the ultra-short Treasury market segment.

What this transaction means for investors

With the stock market rallying to new highs, this move hints at where capital is being pulled from when risk appetite rises. Ultra-short Treasury funds exist basically to park money, not to compound it. When they shrink this dramatically, it usually means that cash has found a better job elsewhere.

The Vanguard 0–3 Month Treasury Bill ETF does exactly what it promises. It holds short-dated U.S. bills, charges a 0.06% expense ratio, and recently offered a 30-day SEC yield of 3.56%. The fund also has minimal price volatility. For capital preservation, all this works, but it might leave some investors craving growth.

Context sharpens the signal. This portfolio is dominated by equity ETFs, with more than 40% allocated across large-cap growth, value, and technology-heavy funds (just when counting top holdings). Intermediate-term bonds also feature prominently. Against that backdrop, a 2.5% cash-equivalent sleeve becomes optional once volatility subsides and forward returns in risk assets look more attractive. The remaining position, now just 0.07% of assets, reads like operational cash rather than an investment stance.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Vanguard Index Funds - Vanguard Value ETF and Vanguard Whitehall Funds - Vanguard High Dividend Yield ETF. The Motley Fool has a disclosure policy.