This diversified advisor has made a bond ETF one of its largest positions.
On November 14, New Hampshire-based Northeast Planning Associates disclosed a buy of 120,572 shares of the VictoryShares Core Intermediate Bond ETF (UITB +0.17%), increasing its position by approximately $5.80 million.
What Happened
According to an SEC filing dated November 14, Northeast Planning Associates increased its stake in VictoryShares Core Intermediate Bond ETF (UITB +0.17%) by 120,572 shares. The end-of-quarter position totaled 287,198 shares with a value of $13.65 million. This move makes UITB the fund’s second-largest holding among 51 total positions reported.
What Else to Know
UITB was about 11.58% of the fund’s reportable assets as of September 30.
Top holdings after the filing:
- NYSEMKT: SLV: $19.22 million (16.3% of AUM)
- NASDAQ: UITB: $13.65 million (11.6% of AUM)
- NASDAQ: USTB: $12.65 million (10.7% of AUM)
- NYSEMKT: JPST: $11.08 million (9.4% of AUM)
- NYSEMKT: GDX: $7.97 million (6.8% of AUM)
As of Monday, UITB shares were priced at $47.41, up about 3% over the past year.
ETF Overview
| Metric | Value |
|---|---|
| AUM | $2.68 billion |
| Yield | 4% |
| Price (as of Monday) | $47.41 |
ETF Snapshot
- UITB’s investment strategy focuses on investing at least 80% of assets in U.S. and foreign debt securities, with flexibility to allocate up to 20% in non-U.S. dollar and emerging market bonds.
- The portfolio composition may utilize derivatives and other instruments with economic characteristics similar to debt securities.
- It’s structured as an exchange-traded fund providing diversified fixed income exposure.
The VictoryShares USAA Core Intermediate-Term Bond ETF offers investors diversified access to intermediate-term fixed income markets, with a focus on investment-grade bonds and selective exposure to foreign and emerging market debt. The fund’s strategy seeks to balance yield and risk by maintaining a core allocation to high-quality debt while allowing tactical flexibility. With a substantial asset base and a disciplined investment approach, the ETF is positioned to serve as a core fixed income holding for a broad range of investors.
Foolish Take
By elevating this intermediate-term bond ETF to the second-largest holding in a 51-position portfolio, Northeast Planning is effectively anchoring client assets around stability.
Zooming out, the broader portfolio reinforces that message. The top holdings skew heavily toward defensive and ballast-style exposures, with precious metals, short-duration Treasurys, and core bond strategies dominating the top tier. Against that backdrop, an intermediate-term bond ETF with an AA average credit profile, meaningful government exposure, and a duration under six years fits neatly into a capital-preservation framework. According to Morningstar data, roughly two-thirds of the portfolio sits in AAA-rated bonds, with government securities accounting for more than 40% of assets, underscoring how little credit risk is being taken.
Performance hasn’t been flashy. A roughly 3% gain over the past year trails equities by a wide margin. However, this looks like a portfolio built to dampen volatility, generate predictable income, and hold up if equity markets reprice risk.
Glossary
Assets under management (AUM): The total market value of assets an investment manager or fund controls on behalf of clients.
13F reportable assets: Securities that institutional investment managers must disclose quarterly to the SEC under Form 13F regulations.
Dividend yield: Annual dividends paid by an investment, expressed as a percentage of its current price.
Alpha: A measure of an investment’s performance relative to a benchmark, showing excess return above the benchmark.
Trailing twelve-month (TTM) dividend yield: Dividend yield calculated using dividends paid over the past twelve months.
Intermediate-term bond: A bond with a maturity typically between three and 10 years, balancing yield and interest rate risk.
Fixed income: Investments that pay regular interest, such as bonds, providing predictable income streams.
Investment-grade bonds: Bonds rated as relatively low risk of default by credit rating agencies, typically BBB- or higher.
Emerging market bonds: Bonds issued by governments or companies in developing countries, often with higher risk and yield.
Derivatives: Financial contracts whose value is derived from underlying assets like stocks, bonds, or indexes.
Core allocation: The central portion of a portfolio, designed to provide stability and consistent returns.
Exchange-traded fund (ETF): An investment fund traded on stock exchanges, holding a basket of assets like stocks or bonds.
