Blue Trust Boosts VGIT Stake as Investors Seek Stability in Treasuries
Key Points
Added 541,766 shares, with an estimated transaction value of $32.35 million in calendar Q3 2025
Transaction size equates to 0.25% of 13F reportable assets under management
Post-trade position: 6,882,291 shares valued at $413.14 million
VGIT represents 3.26% of fund AUM, ranking as the 3rd-largest holding
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Blue Trust, Inc. disclosed the purchase of 541,766 shares of Vanguard Scottsdale Funds - Vanguard Intermediate-Term Treasury ETF in its SEC filing for the period ended Q3 2025. This represents an estimated $32.35 million trade based on the quarterly average price for Q3 2025.
What happened
According to a filing with the Securities and Exchange Commission dated October 16, 2025, Blue Trust, Inc. increased its stake in Vanguard Scottsdale Funds - Vanguard Intermediate-Term Treasury ETF (NASDAQ:VGIT) by 541,766 shares. The estimated value of the new shares, based on the quarterly average price, was $32.35 million. The position now totals 6,882,291 shares and is valued at $413.14 million.
What else to know
This was a buy; the position now accounts for 3.26% of Blue Trust, Inc.’s 13F reportable AUM.
Top five holdings after the filing:
- ITOT: $1.13 billion (8.9% of AUM)
- QUAL: $1.04 billion (8.2% of AUM)
- VGIT: $836.25 million (6.6% of AUM)
- VIDI: $655.80 million (5.2% of AUM) as of September 30, 2025
- IEF: $575.44 million (4.53% of AUM)
As of October 15, 2025, shares were priced at $60.30 (market price), up 1.3% over the year ending October 15, 2025, underperforming the S&P 500 by 8.24 percentage points.
The position remains the 3rd-largest in the fund’s portfolio.
Company overview
| Metric | Value |
|---|---|
| AUM | 41.7 B |
| Price (as of market close 10/15/25) | $60.30 |
| Dividend yield | 3.74% |
| 1-year total return | 1.33% |
Company snapshot
Vanguard Intermediate-Term Treasury ETF (VGIT) offers broad exposure to U.S. Treasury securities with intermediate maturities, providing investors with a liquid and cost-efficient vehicle for government bond allocation. The fund’s strategy emphasizes diversification within the intermediate-term Treasury segment.
The fund holds a diversified portfolio of intermediate-term U.S. Treasury bonds, excluding inflation-protected and floating rate securities, with at least 80% of assets invested in index constituents.
Structured as a passively managed ETF with a low-cost index approach, VGIT is designed for investors seeking exposure to intermediate-duration U.S. government bonds.
Foolish take
Blue Trust's latest purchase of Vanguard Intermediate-Term Treasury ETF (VGIT) highlights how investors are leaning towards stability as bond markets signal a softer policy outlook. Treasury yields remain relatively high compared to pre 2022 levels, yet the recent slip below 4% on the 10-year note reflects growing expectations that interest rates have peaked.
VGIT holds Treasuries maturing three to ten years, targeting the most active part of the market where income and price stability intersect. This segment of the yield curve often appeals to investors seeking modern duration without excessive volatility. The fund offers balance between return potential and rate sensitivity with its yield at near 4.3%.
For long term investors, VGIT reinforces why simple and low-cost Treasury ETFs remain a foundation of diversified portfolios. As inflation cools and borrowing costs stabilize, adding quality fixed income exposure today could turn out to be the more prudent portfolio moves during this market cycle.
Glossary
ETF (Exchange-Traded Fund): An investment fund traded on stock exchanges, holding assets like stocks or bonds.
13F reportable assets: Investment holdings that institutional managers must disclose quarterly to the SEC on Form 13F.
AUM (Assets Under Management): The total market value of investments managed by a fund or firm on behalf of clients.
Intermediate-term Treasury bonds: U.S. government bonds with maturities typically between three and ten years.
Dividend yield: Annual dividends paid by an investment, expressed as a percentage of its current price.
Total return: The investment's price change plus all dividends and distributions, assuming those payouts are reinvested.
Passively managed ETF: A fund that aims to replicate the performance of a specific index rather than actively selecting securities.
Index constituents: The individual securities that make up a particular market index.
Bloomberg U.S. Treasury 3-10 Year Index: A benchmark tracking U.S. Treasury bonds with maturities from three to ten years.
Liquidity (in investing): How quickly and easily an asset can be bought or sold without affecting its price.
Portfolio diversification: Spreading investments across various assets to reduce risk.
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Eric Trie 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.
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