Towerpoint Wealth Sells Over $2.5 Million VCIT Shares

Towerpoint Wealth, LLC trimmed its stake in Vanguard Intermediate-Term Corporate Bond ETF (NASDAQ:VCIT) in Q3 2025. It sold 33,519 shares for an estimated $2.57 million according to an SEC filing.

What happened

Towerpoint Wealth, LLC slightly reduced its exposure to Vanguard Intermediate-Term Corporate Bond ETF, selling 33,519 shares during the quarter. It now holds 173,521 VCIT shares, worth $14.59 million. Details are available in the SEC filing dated October 07, 2025.

What else to know

The sale represented about 1% of Towerpoint Wealth's reportable assets under management (AUM). Even after the sale, VCIT remains one of its top five holdings.

Here are the firm's top holdings, as of 30 Sept., 2025:

• Vanguard Growth ETF (NYSEMKT:VUG): $30.25 million (12.38% of AUM)
• Vanguard Value ETF (NYSEMKT:VTV): $29.27 million (11.98% of AUM)
• Vanguard Mid-Cap ETF (NYSEMKT:VO): $15.32 million (6.27% of AUM)
• Vanguard FTSE Developed Markets ETF (NYSEMKT:VEA): $15.02 million (6.1% of AUM)
• Vanguard Intermediate-Term Corporate Bond ETF: $14.59 million (5.97% of AUM)

As of October 7, 2025, VCIT shares were priced at $84.00, up 1.83% year-on-year. Its yield was 4.53%.

ETF overview

Data as of market close 7 October, 2025.

ETF snapshot

The Vanguard Intermediate-Term Corporate Bond ETF offers institutional investors broad exposure to the medium-term, investment-grade corporate bond market. The fund is designed to closely track the Bloomberg U.S. 5-10 Year Corporate Bond Index. This ensures broad diversification and liquidity across the U.S. corporate bond sector.

VCIT is aimed at investors seeking income and moderate interest rate risk. Its competitive yield and disciplined index methodology provide a cost-effective solution for long-term portfolio construction.

• Investment strategy: Indexing approach tracking the Bloomberg U.S. 5-10 Year Corporate Bond Index, focusing on intermediate-term, investment-grade U.S. dollar-denominated corporate bonds.
• Underlying holdings: Primarily investment-grade bonds from U.S. and non-U.S. industrial, utility, and financial issuers, with maturities between 5 and 10 years; at least 80% of assets are invested in index constituents.
• Structure: Structured as an ETF, offering diversified fixed income exposure.

Foolish take

Given that Vanguard's Intermediate-Term Corporate Bond ETF still makes up almost 6% of Towerpoint Wealth's portfolio, this looks more like rebalancing than a major shift in strategy. Medium-term bonds can help balance a portfolio by reducing exposure to stock market volatility while still paying solid yields.

In fact, even though Towerpoint sold about 15% of its VCIT shares in Q3 2025, it actually increased its medium-term bond holdings. The firm upped its exposure to the T. Rowe Price QM U.S. Bond ETF (NYSEMKT:TAGG). It bought over $4 million in TAGG shares, taking its total holdings to 267,214 worth around $11.5 million. These two holdings combined now account for over 10% of Towerpoint Wealth's investments.

The QM U.S. Bond ETF is a managed portfolio that aims to exceed the performance of the Bloomberg U.S. Aggregate Bond Index. It holds a much larger proportion of U.S. Treasuries and U.S. Government Agency Securities than the Vanguard ETF, which lowers the risk of default.

Glossary

ETF (Exchange-Traded Fund): An investment fund traded on stock exchanges, holding a basket of assets like stocks or bonds.
Intermediate-term: Refers to bonds or funds with maturities typically between 5 and 10 years.
Corporate bond: A debt security issued by a corporation to raise capital, paying interest to investors.
Investment-grade: Bonds rated as relatively low risk of default by credit rating agencies, typically BBB/Baa or higher.
AUM (Assets Under Management): The total market value of assets a fund or investment manager oversees.
Dividend yield: Annual income from dividends expressed as a percentage of the investment's price.
Total return: The investment's price change plus all dividends and distributions, assuming those payouts are reinvested.
Expense ratio: The annual fee expressed as a percentage of assets, covering fund operating costs.
Indexing approach: A strategy aiming to replicate the performance of a specific market index rather than outperform it.
Liquidity: The ease with which an asset can be quickly bought or sold without significantly affecting its price.
Portfolio construction: The process of selecting and managing a mix of investments to achieve specific financial goals.
Yield: The income return on an investment, usually expressed as an annual percentage based on its cost or market value.

Emma Newbery has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Vanguard FTSE Developed Markets ETF, Vanguard Index Funds - Vanguard Growth ETF, Vanguard Index Funds - Vanguard Mid-Cap ETF, and Vanguard Index Funds - Vanguard Value ETF. The Motley Fool has a disclosure policy.