Is This Short-Term Bond ETF a Buy After Merit Financial Bought Shares Worth $8.6 Million?
Key Points
Merit Financial increased its stake by 167,898 shares; estimated trade size ~$8.55 million based on quarterly average price.
The quarter-end position value rose by $8.17 million, reflecting both trading and price changes.
The trade represented 0.07% of Merit’s 13F reportable assets under management.
Post-trade holding: 2,598,695 shares valued at $132.12 million.
The position is 1.05% of 13F AUM, placing it outside the fund’s top five holdings.
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What happened
According to a SEC filing dated January 26, 2026, Merit Financial Group, LLC increased its position in VictoryShares USAA Core Short-Term Bond ETF (NASDAQ:USTB) by 167,898 shares during the fourth quarter. The estimated value of shares acquired was $8.55 million, based on the period’s average closing price. The quarter-end valuation of the stake increased by $8.17 million, factoring both new purchases and price changes.
What else to know
The buy activity brought the USTB position to approximately 1.05% of Merit’s 13F assets under management.
Top five holdings after the filing:
- NYSEMKT:VUG: $399.02 million (approximately 3.31% of AUM)
- NYSEMKT:QLTY: $288.24 million (approximately 2.39% of AUM)
- NASDAQ:IUSG: $273.15 million (approximately 2.26% of AUM)
- NASDAQ:IUSV: $266.08 million (approximately 2.20% of AUM)
- NYSEMKT:MGK: $261.18 million (approximately 2.16% of AUM)
As of January 25, 2026, USTB shares were priced at $50.90, up approximately 5.9% over the past year, underperforming the S&P 500 by 7.11 percentage points.
Trailing 12-month dividend yield was 4.60%, and shares were priced 0.37% below their 52-week high as of January 26, 2026.
ETF overview
| Metric | Value |
|---|---|
| AUM | $1.73 billion |
| Price (as of market close January 23, 2026) | $50.90 |
| Dividend yield | 4.60% |
| 1-year total return | 5.91% |
ETF snapshot
- USTB’s investment strategy focuses on short-term debt securities and derivatives, targeting a dollar-weighted average portfolio maturity of three years or less.
- Underlying holdings primarily consist of U.S. and foreign bonds, with up to 20% of assets allocated to non-U.S. dollar-denominated and emerging market debt.
- Structured as an exchange-traded fund, the vehicle is listed on the NASDAQ.
VictoryShares USAA Core Short-Term Bond ETF provides investors with diversified exposure to short-duration fixed income markets, emphasizing capital preservation and income generation. Its blend of U.S. and foreign bonds allows the ETF to invest up to 20% of its net assets in foreign debt securities, including non-U.S. dollar-denominated securities and securities of companies in emerging market countries.
What this transaction means for investors
Investment firm Merit Financial Group’s purchase of additional shares in the VictoryShares USAA Core Short-Term Bond ETF (USTB) indicates the wealth management company possesses a positive outlook towards the exchange-traded fund.
USTB boasts $1.7 billion assets under management, which reflects robust liquidity, and an attractive yield of 4.6%. It’s designed for income-minded investors who want to park their cash in a low-risk, high-quality fixed-income fund.
The ETF can be appealing for those who seek capital preservation and reduced volatility. The fund’s expense ratio of 0.34% isn’t cheap, but in exchange, investors get an actively-managed fund and greater peace of mind.
Merit Financial’s purchase of more shares, increasing its position from 2.4 million shares in the third quarter of 2025 to 2.6 million shares in the fourth quarter, suggests the ETF is delivering results. USTB looks like a good ETF for investors who want to earn more for their cash while maintaining low risk.
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Robert Izquierdo 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.
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