Lineweaver Wealth Trims $9.8 Million in Short-Term Bond ETF as Investors Pivot to Stocks

On Friday, Lineweaver Wealth Advisors disclosed the sale of 201,311 shares of ISTB worth an estimated $9.8 million based on average prices in the third quarter.

What Happened

According to a filing with the Securities and Exchange Commission released on Friday, Lineweaver Wealth Advisors reduced its holding in the iShares Core 1-5 Year USD Bond ETF (NASDAQ:ISTB) by 201,311 shares in the third quarter. The estimated value of the shares sold was approximately $9.8 million, based on the average unadjusted closing price in the period. The fund retains 47,715 shares after the transaction.

What Else to Know

This sale lowered ISTB to 0.3% of the fund’s 13F assets under management as of September 30.

Top holdings after the filing:

• IVV: $65 million (9.5% of AUM)
• FBND: $35.3 million (5.2% of AUM)
• SMTH: $34.6 million (5.1% of AUM)
• AGG: $33.3 million (4.9% of AUM)
• USMV: $29.3 million (4.3% of AUM)

As of Monday morning, ISTB shares were priced at $48.81, up 1.2% over the past year and underperforming the S&P 500 by 12 percentage points.

Company Overview

Company Snapshot

• ISTB is a passively managed exchange-traded fund (ETF) investing in U.S. dollar-denominated bonds.
• It tracks an index of investment-grade fixed income securities with maturities between one and five years.
• The fund targets institutional and individual investors seeking short-term bond exposure and income.

The iShares Core 1-5 Year USD Bond ETF (ISTB) is a passively managed fund that invests at least 90% of its assets in fixed income securities included in its index. With a sizable asset base and a diversified portfolio, ISTB offers institutional investors exposure to fixed income.

Foolish Take

Lineweaver Wealth Advisors’ $9.8 million sale of the iShares Core 1-5 Year USD Bond ETF marks a notable rotation away from this short-term fixed income fund. The move reduced ISTB to just 0.3% of reportable assets, a fraction of Lineweaver’s top positions such as IVV, FBND, and AGG.

ISTB, which carries a 0.06% expense ratio and yields roughly 4%, invests in investment-grade and select high-yield bonds maturing within one to five years. The ETF’s effective duration of 2.6 years and 4.09% yield to maturity make it a conservative income vehicle—one that’s gained just 1% over the past year as investors shift toward riskier assets amid Fed rate-cut expectations.

Relative to the fund’s larger equity stakes, the ISTB reduction potentially reflects a strategic rebalancing toward growth exposure and away from short-duration bonds that have seen muted price appreciation. Still, for risk-averse investors, ISTB remains a low-cost anchor for capital preservation and steady income within diversified portfolios.

Glossary

AUM: Assets Under Management – The total market value of assets a fund or investment manager oversees.

13F assets: Securities and assets reported by institutional investment managers on SEC Form 13F, typically covering U.S. equity holdings.

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

Dividend yield: The annual dividend income of an investment expressed as a percentage of its current price.

Passively managed fund: A fund that tracks a specific index rather than actively selecting securities.

Fixed income securities: Investments that pay regular interest, such as bonds or Treasury notes.

Annual dividend yield: The total dividends paid over a year divided by the investment's price, shown as a percentage.

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

Stake: The amount or percentage of ownership an investor holds in a particular asset or company.

Top holdings: The largest individual investments within a fund's portfolio, usually ranked by value or percentage of AUM.

Underperforming: When an investment delivers a lower return compared to a benchmark or index.

Institutional investors: Organizations like pension funds, mutual funds, or insurance companies that invest large sums of money.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.