Red Wave Investments Supercharges Treasury Bill Holdings by 44%
Key Points
Bought 74,530 shares; estimated transaction value of $5.63 million based on quarterly average price.
Quarter-end position value rose by $5.59 million, including price movement effects.
Trade equaled 1.67% of 13F reportable AUM.
Post-trade position: 256,193 shares worth $19.32 million.
The stake now represents 5.75% of the fund's AUM, making it one of the fund's top five holdings.
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On Feb. 6, 2026, Red Wave Investments LLC disclosed a buy of 74,530 shares of Vanguard 0-3 Month Treasury Bill ETF (NASDAQ:VBIL), an estimated $5.63 million trade based on quarterly average pricing.
What happened
According to a SEC filing dated Feb. 6, 2026, Red Wave Investments LLC increased its position in Vanguard 0-3 Month Treasury Bill ETF (NASDAQ:VBIL) by 74,530 shares. The estimated transaction value was $5.63 million based on the average closing price for the quarter. The quarter-end value of the position increased by $5.59 million, reflecting both the additional shares and changes in share price.
What else to know
- This was a buy; the holding now accounts for 5.7487% of Red Wave Investments LLC's 13F reportable AUM.
- Top holdings after the filing:
- NYSEMKT: VTI: $46.6 million (13.9% of AUM)
- NYSEMKT: VUSB: $32.5 million (9.7% of AUM)
- NASDAQ: QQQ: $20.2 million (6.0% of AUM)
- NYSEMKT: VBIL: $19.3 million (5.75% of AUM)
- NYSEMKT: VT: $17.4 million (5.2% of AUM)
- As of Feb. 5, 2026, shares were priced at $75.45, down 0.25% from the 52-week high.
- The one-year total return for the ETF is 4.05%; annualized dividend yield is 3.42%.
ETF overview
| Metric | Value |
|---|---|
| Price (as of market close Feb. 5, 2026) | $75.45 |
| Dividend yield | 3.42% |
| One-year price change | 4.05% |
| Net assets | $5.05 billion |
ETF snapshot
- Offers an exchange-traded fund (ETF) tracking investment grade US Treasury bills with maturities of three months or less.
- Generates revenue primarily through management fees and investment income by replicating the performance of a short-term Treasury bill index.
- Targets institutional and individual investors seeking capital preservation and liquidity through exposure to ultra-short-term US government securities.
Vanguard 0-3 Month Treasury Bill ETF provides investors with a highly liquid vehicle for short-term US Treasury exposure, focusing on securities with maturities under three months. The fund employs a sampling strategy to closely match the risk and return characteristics of its benchmark index.
What this transaction means for investors
Red Wave Investments increased its Treasury bill position by a whopping 44% in one quarter by adding $5.6 million to VBIL. This was by far the firm's largest position increase during the period, making it a significant shift in portfolio allocation in an otherwise quiet quarter of minor adjustments.
The increase VBIL is notable given Red Wave's approach. The firm runs a predominantly index-based strategy, with VTI (total U.S. stock market), QQQ (Nasdaq 100), and VT (total international stocks) as top holdings. VBIL now sits as the fourth-largest position at 5.75% of assets, representing a major allocation to ultra-short-term government securities. Advisors commonly boost cash when new money comes in from clients and they haven't decided where to invest it yet, or when their stock holdings have climbed so much that they now make up too big a chunk of the portfolio and need rebalancing back to target allocations.
For investors, VBIL works as a parking spot for cash that needs to remain accessible while earning more than traditional savings accounts. The downside is missing out on stock gains, so VBIL works best when you want to play it safe or need cash available quickly.
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Sara Appino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Vanguard Total Stock Market ETF and iShares Trust - iShares 0-3 Month Treasury Bond ETF. The Motley Fool has a disclosure policy.
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