On Thursday, AdvisorNet Financial disclosed the purchase of 100,255 shares of the Vanguard Total Bond Market ETF (BND 0.13%) for an estimated $7.4 million in the third quarter.
What Happened
According to a filing with the Securities and Exchange Commission released on Thursday, AdvisorNet Financial purchased 100,255 additional shares of the Vanguard Total Bond Market ETF (BND 0.13%) during the third quarter. The estimated value of the trade, calculated using the average closing price for the quarter, was $7.4 million. This brought the total position to 308,749 shares as of September 30.
What Else to Know
The BND stake now represents 1.3% of AdvisorNet Financial reported assets.
Top holdings after the filing:
- NYSEMKT:IVV: $86.3 million (4.9% of AUM)
- NYSEMKT:DFAU: $41.3 million (2.3% of AUM)
- NYSEMKT:DFIC: $35.5 million (2% of AUM)
- NYSEMKT:JPST: $34.5 million (2% of AUM)
- NYSEMKT:AGG: $32.5 million (1.8% of AUM)
As of Monday, BND shares closed at $74.64, up 1.2% over the past year and underperforming the S&P 500's nearly 14% gain.
Company Overview
| Metric | Value |
|---|---|
| Share Class Net Assets | $139.3 billion |
| Price (as of market close on Monday) | $74.64 |
| 30-Day SEC Yield | 4.15% |
| 1-year total return | 2.9% |
ETF Snapshot
- BND seeks to track the performance of a broad, investment-grade U.S. bond index, providing diversified exposure to government, corporate, and securitized fixed income securities.
- Portfolio comprises a wide spectrum of U.S. dollar-denominated bonds, including government, corporate, mortgage-backed, and asset-backed securities, with holdings selected through a sampling process.
- It operates as a passively managed ETF, structured to replicate its target index and provide fixed income exposure.
The Vanguard Total Bond Market ETF (BND) is one of the largest fixed income ETFs, offering investors broad market access to U.S. investment-grade bonds across multiple sectors and maturities. Its strategy emphasizes diversification across investment-grade bonds.
Foolish Take
AdvisorNet Financial’s $7.4 million purchase of the Vanguard Total Bond Market ETF seemingly reflects confidence in core fixed-income exposure. The addition, which lifted BND to 1.3% of the firm’s assets, expands its allocation to one of the bond market’s most diversified vehicles.
BND tracks the Bloomberg U.S. Aggregate Float Adjusted Index, holding more than 11,000 bonds across government, corporate, and mortgage-backed securities. The fund carries an expense ratio of just 0.03% and a 30-day SEC yield of 4.15%, offering a competitive income stream in a moderating rate environment. With $374 billion in total net assets and an average duration of 5.8 years, BND provides balanced exposure for investors seeking steady income and moderate risk.
While BND’s one-year gain of 1.2% lags the S&P 500, its consistency makes it a cornerstone for diversification. AdvisorNet’s purchase suggests a strategic tilt toward stability as the Federal Reserve continues to ease monetary policy.
Glossary
ETF (Exchange-Traded Fund): An investment fund traded on stock exchanges, holding a basket of assets like stocks or bonds.
AUM (Assets Under Management): The total market value of assets a fund or investment manager oversees on behalf of clients.
13F reportable assets: Assets disclosed by institutional investment managers in quarterly SEC Form 13F filings, showing certain equity holdings.
Dividend yield: The annual dividend income expressed as a percentage of the investment's current market price.
Total return: The investment's price change plus all dividends and distributions, assuming those payouts are reinvested.
Investment-grade: Bonds rated as relatively low risk of default by credit rating agencies, typically BBB/Baa or higher.
Fixed income securities: Investments like bonds that provide regular interest payments and return principal at maturity.
Mortgage-backed securities: Bonds backed by pools of home mortgages, with payments passed through to investors.
Asset-backed securities: Bonds backed by pools of assets such as loans, leases, or receivables, not limited to mortgages.
Passively managed ETF: An ETF designed to replicate the performance of a specific index rather than actively selecting investments.
Sampling process: A method where a fund selects a representative subset of securities to closely match an index’s performance.
