Here's Why One Fund Bought $19 Million in Global Bonds and Sold Shares of a Big Tech ETF

Ohio-based C2P Capital Advisory Group, which does business as Prosperity Capital Advisors, initiated a new position in the Vanguard Total International Bond ETF (NASDAQ:BNDX), acquiring shares valued at an estimated $18.9 million in the third quarter, according to an SEC filing released Tuesday.

What Happened

According to a Securities and Exchange Commission (SEC) filing on Tuesday, Prosperity Capital Advisors reported a new position in the Vanguard Total International Bond ETF (NASDAQ:BNDX). The firm acquired 381,763 shares in the third quarter, with an estimated transaction value of $18.9 million based on the average price for the period.

What Else to Know

Top holdings after the filing:

• NYSEMKT:DFAC: $155.3 million (9% of AUM)
• NYSEMKT:SPLG: $125.7 million (7.3% of AUM)
• NYSEMKT:DCOR: $65.1 million (3.8% of AUM)
• NYSEMKT:DFAX: $57.7 million (3.3% of AUM)
• NYSEMKT:VUG: $52.2 million (3% of AUM)

As of Monday, BNDX shares were priced at $49.87, down 0.3% over the past year.

ETF Overview

ETF Snapshot

• BNDX investment strategy: Tracks the Bloomberg Global Aggregate ex-USD Float Adjusted RIC Capped Index (USD Hedged), seeking to provide broad exposure to investment-grade, fixed-rate debt securities outside the United States.
• Expense ratio and structure: Passively managed ETF, offering access to global bond markets for investors seeking income and diversification.
• Investor base: Designed for investors seeking international fixed income exposure with currency risk hedged to the U.S. dollar.

The Vanguard Total International Bond ETF (BNDX) ranks among the largest international bond funds. The fund employs a disciplined indexing approach, providing investors with efficient, hedged exposure to non-U.S. investment-grade bonds.

Foolish Take

Prosperity Capital Advisors’ new stake in the Vanguard Total International Bond ETF (BNDX) marks a notable pivot toward global fixed income after trimming exposure to high-flying tech through its sale of QQQM in the same quarter. The Ohio-based advisory firm purchased 381,763 shares valued at roughly $18.9 million, according to its latest SEC filing, positioning the ETF as a new core holding.

The move suggests a shift toward stability after a year of strong equity gains and continued rate uncertainty. BNDX, which tracks the Bloomberg Global Aggregate ex-USD Float Adjusted Index, offers broad exposure to non-U.S. investment-grade bonds while neutralizing currency fluctuations. With a 0.07% expense ratio and a 2.93% 30-day SEC yield, the fund provides an efficient hedge against equity volatility and dollar strength.

After a year that saw Prosperity lighten positions in growth-heavy funds like QQQM and reallocate into bonds, the strategy looks less like a retreat and more like a reset. For long-term investors, the shift highlights the enduring role of global bonds in diversification—especially as higher yields make fixed income a more competitive complement to equities.

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 an investment firm manages on behalf of clients.
13F reportable assets: Securities that institutional investment managers must disclose quarterly to the SEC under Form 13F.
Dividend yield: The annual dividend income expressed as a percentage of the investment's current price.
Alpha: A measure of an investment’s performance relative to a benchmark index, showing excess return.
Expense ratio: The annual fee, as a percentage of assets, that a fund charges to cover operating expenses.
Indexing approach: An investment strategy aiming to replicate the performance of a specific market index.
Hedged exposure: An investment strategy that reduces currency risk by offsetting foreign exchange fluctuations.
Investment-grade: Bonds rated as relatively low risk of default by credit rating agencies.
Fixed-rate debt securities: Bonds or loans with interest payments that remain constant throughout their term.
Passively managed: A fund management style that tracks a market index rather than actively selecting investments.
RIC Capped Index: An index with rules limiting the weight of individual securities to meet regulated investment company (RIC) requirements.

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