Why This $6 Million Trim of a 3-Month Treasury ETF Might Signal a Shift in Cash Strategy

Wealthstar Advisors disclosed in a January 30 SEC filing that it reduced its position in the F/m US Treasury 3 Month Bill ETF (NASDAQ:TBIL), selling 129,169 shares for an estimated $6.45 million based on quarterly average pricing.

What happened

According to a SEC filing dated January 30, Wealthstar Advisors, LLC sold 129,169 shares of F/m US Treasury 3 Month Bill ETF (NASDAQ:TBIL) during the quarter. The estimated transaction value was $6.45 million, based on the average closing price for the period. The quarter-end value of the holding decreased by $6.46 million, capturing both trading activity and underlying price movement.

What else to know

TBIL now accounts for 0.2% of 13F reportable AUM at Wealthstar Advisors, LLC.

Top holdings after the filing:

• NYSEMKT: SPXL: $37.19 million (20.3% of AUM)
• NASDAQ: IGSB: $10.14 million (5.5% of AUM)
• NYSEMKT: LQD: $10.07 million (5.5% of AUM)
• NYSEMKT: HYG: $7.97 million (4.3% of AUM)
• NASDAQ: TXN: $6.71 million (3.7% of AUM)

As of January 29, TBIL shares were priced at $49.85.

ETF overview

ETF snapshot

• TBIL’s investment strategy seeks to track the performance of the most recently issued 3-month U.S. Treasury Bill, holding a single issue each month to provide exposure to short-term government securities.
• The fund portfolio consists of at least 80% of net assets invested in the current 3-month Treasury Bill, resulting in a highly liquid and low credit risk profile.
• Structured as an ETF, it offers daily liquidity and transparent pricing, with a competitive expense ratio designed for cost-efficient access to U.S. Treasury markets.

The F/m US Treasury 3 Month Bill ETF (TBIL) provides investors with direct, efficient access to the U.S. Treasury Bill market through a simple and transparent monthly rollover strategy. The fund is designed to serve as a cash management tool or a core holding for investors seeking capital preservation and liquidity.

TBIL's disciplined approach of holding only the most current 3-month Treasury Bill each month minimizes interest rate and credit risk, while its ETF structure ensures intraday tradability and operational transparency. This makes TBIL a compelling option for institutional and individual investors focused on short-duration, high-quality fixed income exposure.

What this transaction means for investors

Capital allocation at the very short end of the yield curve is rarely about conviction and almost always about sequencing, and that’s what makes this move worth likely noting. Trimming exposure to a 3-month Treasury ETF suggests less of a view on credit or rates and more of a reassessment of how much dry powder a portfolio actually needs at this stage of the cycle.

Ultra-short Treasury ETFs like this one function as modern cash equivalents. They’re designed for capital preservation, daily liquidity, and minimal duration risk, not return maximization. Cutting the position down to a fraction of assets under management signals that excess liquidity may be getting redeployed elsewhere, rather than sitting idle waiting for clarity.

Meanwhile, the portfolio still holds meaningful exposure to longer-duration and credit-sensitive fixed income vehicles alongside equities, suggesting this was not a defensive retreat but a recalibration. In environments where yields have already normalized, the opportunity cost of holding too much cash quietly rises.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Texas Instruments. The Motley Fool has a disclosure policy.