Bluestem Financial Loads Up on Vanguard’s Total Bond Market ETF in $7.7 Million Buy
Key Points
Bluestem Financial Advisors increased its holding of the Vanguard Total Bond Market ETF by 105,000 shares in the third quarter, an estimated $7.7 million transaction based on average prices during the period.
The transaction represented 3% of the fund’s reportable assets under management for the quarter.
Post-trade, Bluestem holds 738,811 shares of the Vanguard ETF, valued at $55 million as of September 30.
The ETF remains Bluestem's largest holding, accounting for 21.5% of total 13F reportable AUM.
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On Tuesday, Bluestem Financial Advisors disclosed buying 105,000 shares of the Vanguard Total Bond Market ETF (NASDAQ:BND) in an estimated $7.7 million transaction during the third quarter.
What Happened
Bluestem Financial Advisors reported purchasing 105,000 shares of the Vanguard Total Bond Market ETF in its Form 13F for the third quarter, filed with the U.S. Securities and Exchange Commission on Tuesday. The estimated value of the trade, calculated using the average closing price for the quarter, is approximately $7.7 million. The position now totals 738,811 shares, making the Vanguard ETF the fund’s largest holding by value.
What Else to Know
This buy brings the ETF holding to 21.5% of Bluestem’s 13F reportable assets under management as of September 30.
Top five holdings post-filing:
- BND: $54.95 million (21.5% of AUM)
- IVV: $54.12 million (21.2% of AUM)
- VB: $30.78 million (12% of AUM)
- VEU: $30.60 million (12% of AUM)
- VNQ: $14.22 million (5.6% of AUM)
As of Tuesday, shares were priced at $74.28, up 0.3% year-over-year and trailing the S&P 500's 17% gain.
Company Overview
| Metric | Value |
|---|---|
| Assets under management | $139.3 billion |
| Price (as of Wednesday afternoon) | $74.28 |
| 30-Day SEC Yield | 4.15% |
Company Snapshot
- BND seeks to track the performance of a broad, investment-grade U.S. bond index using a representative sampling strategy.
- Its portfolio consists of U.S. government, corporate, international dollar-denominated, mortgage-backed, and asset-backed bonds with maturities greater than one year.
- It is structured as a passively managed ETF with a focus on broad diversification.
This Vanguard ETF offers exposure to the entire U.S. investment-grade bond universe, providing investors with broad diversification across multiple fixed income sectors. Its competitive advantage is its extensive coverage.
Foolish Take
Bluestem Financial Advisors’ $7.7 million purchase of the Vanguard Total Bond Market ETF (BND) highlights how many fiduciary, long-term-focused firms are rebalancing toward fixed income after two volatile years in the bond market. The fund—Vanguard’s largest fixed-income ETF—offers exposure to some 10,000 investment-grade U.S. bonds, including Treasurys, mortgage-backed securities, and high-quality corporate debt.
BND’s 4.15% SEC yield and 0.03% expense ratio make it one of the most cost-efficient and diversified ways to capture steady income and offset equity risk. Bluestem’s move aligns with its fee-only, fiduciary model, which emphasizes client-centered, goal-based financial planning over short-term speculation. Bonds like those in BND can help stabilize client portfolios amid lingering uncertainty in equities and geopolitics.
For investors seeking broad diversification and reliable income in a single fund, BND remains a cornerstone holding, and Bluestem’s top position underscores the continued appeal of high-quality fixed income as a stabilizer in a balanced strategy.
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 that a fund or investment manager oversees.
13F reportable assets: Securities that institutional investment managers must disclose in quarterly SEC Form 13F filings.
Dividend yield: Annual dividends paid by an investment, expressed as a percentage of its current price.
Passively managed: An investment strategy aiming to replicate a market index rather than outperform it through active selection.
Representative sampling strategy: A method where a fund holds a sample of securities that closely matches the characteristics of an index.
Investment-grade bond: A bond rated as relatively low risk of default by credit rating agencies.
Mortgage-backed bond: A bond secured by a pool of mortgage loans, with payments passed through to investors.
Asset-backed bond: A bond backed by financial assets such as loans, leases, or receivables.
Total return: The investment's price change plus all dividends and distributions, assuming those payouts are reinvested.
Trailing: Refers to a measurement or comparison based on past performance, usually over a specified period.
TTM: The 12-month period ending with the most recent quarterly report.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Vanguard Index Funds - Vanguard Small-Cap ETF, Vanguard Real Estate ETF, Vanguard Total Bond Market ETF, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy.
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