XML Financial Sells Off 293K BND Shares in $21.6 Million Exit

XML Financial, LLC fully exited its holding in Vanguard Total Bond Market ETF (NASDAQ:BND), selling approximately $21.59 million in shares during Q3 2025.

What happened

According to a filing with the Securities and Exchange Commission dated October 20, 2025, XML Financial, LLC reported the sale of its entire 293,210-share position in Vanguard Total Bond Market ETF (NASDAQ:BND) during Q3 2025. The estimated transaction value was approximately $21.59 million. The fund now reports no shares of BND in its portfolio.

What else to know

XML Financial, LLC sold its entire position in BND, which now represents 0% of reportable assets under management. The position previously represented 1.87% of the fund's AUM.

Top holdings after the filing, as of September 30, 2025:

• SCHG: $50.7 million (4.1% of AUM)
• IWF: $38 million (3.1% of AUM)
• SCHV: $35.5 million (2.9% of AUM)
• DGRO: $34.6 million (2.8% of AUM)
• MSFT: $31.3 million (2.6% of AUM)

As of October 29, 2025, shares of BND were priced at $74.73, up 3.75% YTD, underperforming the S&P 500 by 13.4 percentage points during the same period. The fund’s dividend yield stands at 3.76%.

ETF overview

ETF snapshot

• Seeks to track the performance of a broad, investment-grade U.S. bond index, investing primarily in government, corporate, and securitized fixed income securities with maturities exceeding one year.
• Portfolio is diversified across U.S. Treasury, agency, mortgage-backed, asset-backed, and corporate bonds, constructed using a sampling approach to reflect the index composition.
• Serves institutional and individual investors seeking diversified core fixed income exposure in the U.S. bond market.
• Vanguard Total Bond Market ETF (BND) provides broad exposure to the U.S. investment-grade bond market, with assets diversified across government, corporate, and securitized debt.

Foolish take

XML Financial recently sold off $21.6 million worth of the Vanguard Total Bond Market ETF (BND). This looks like a complete shift away from broad U.S. bond investments after a pretty quiet year for fixed income. While the fund did gain about 3.8% in 2025, it's still way behind the S&P 500—a good reminder that bond investors haven't seen huge returns even with higher yields. This move might signal a shift towards more stock-heavy or higher-yielding strategies as portfolio managers look for better performance drivers heading into 2026.

BND is still a key ETF for investors who want diversified, investment-grade bond exposure across government, corporate, and mortgage-backed securities. Its 3.8% dividend yield offers steady income and low credit risk, making it a classic core holding for conservative portfolios. XML's exit probably reflects a tactical rebalancing rather than a lack of faith in the fund's structure—a move consistent with managers prioritizing flexibility in an uncertain interest rate environment.

Glossary

ETF: Exchange-traded fund; a pooled 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 or fund manages on behalf of clients.
13F reportable assets: Securities that institutional investment managers must disclose quarterly to the SEC if they manage over $100 million.
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.
Alpha: A measure of an investment's performance relative to a benchmark, indicating value added or lost.
Sampling approach: A method where a fund selects a representative subset of securities to mimic an index, rather than holding all constituents.
Investment-grade: Bonds rated as relatively low risk of default by credit rating agencies, typically BBB/Baa or higher.
Securitized debt: Financial instruments backed by pools of assets, such as mortgages or loans, that are packaged and sold to investors.
Mortgage-backed securities: Bonds secured by a pool of mortgages, with payments passed through to investors.
Asset-backed securities: Bonds backed by pools of assets like loans, leases, or receivables, other than mortgages.
TTM: The 12-month period ending with the most recent quarterly report.

Adam Palasciano has no positions in any of the stocks mentioned. The Motley Fool has positions in and recommends Microsoft and Vanguard Total Bond Market ETF. The Motley Fool has a disclosure policy.