Why a $6.5 Million Sale Might Suggest Less Appetite for Long-Duration Credit

4 days ago 4

Jonathan Ponciano, The Motley Fool

Sat, January 31, 2026 astatine 2:50 PM CST 4 min read

On January 30, Wealthstar Advisors disclosed selling 82,700 shares of the Vanguard Total Corporate Bond ETF (NASDAQ:VTC), an estimated $6.47 cardinal commercialized based connected quarterly mean pricing.

According to a Securities and Exchange Commission (SEC) filing dated January 30, Wealthstar Advisors reduced its holding successful the Vanguard Total Corporate Bond ETF by 82,700 shares. The estimated worth of the shares sold was $6.47 million, based connected the mean closing terms during the 4th quarter. The full worth of the presumption astatine quarter-end decreased by $6.49 million, a fig that includes some trading and terms changes.

Following the sale, VTC represents conscionable 0.21% of Wealthstar Advisors, LLC’s 13F reportable assets nether management.

Top holdings aft the filing:

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

As of January 29, shares were priced astatine $77.96, with a 7.51% full one-year return.

Metric

Value

AUM	$1.51 billion
Price (as of January 29)	$77.96
Yeld	4.74%
1-year full return	7.5%

VTC’s concern strategy focuses connected tracking the Bloomberg U.S. Corporate Bond Index, providing vulnerability to investment-grade, fixed-rate, taxable U.S. firm bonds.
The portfolio is diversified crossed U.S. dollar-denominated bonds issued by industrial, utility, and fiscal companies, reflecting the creation of the underlying index.
Structured arsenic a money of funds ETF, it offers a low-cost, passively managed attack with an accent connected wide marketplace sum and businesslike disbursal management.

The Vanguard Total Corporate Bond ETF delivers diversified entree to the U.S. investment-grade firm enslaved marketplace done a transparent, index-based strategy. The fund's standard and disciplined attack alteration outgo ratio and wide assemblage representation. Its competitory borderline lies successful its debased disbursal operation and broad vulnerability to high-quality firm indebtedness instruments.

Broad, investment-grade firm enslaved funds thin to transportation meaningful duration, which tin softly predominate returns erstwhile yields halt falling. Trimming vulnerability present suggests a penchant for tighter power implicit interest-rate sensitivity alternatively than a antagonistic presumption connected firm equilibrium sheets.

That discourse fits the remainder of the portfolio. Wealthstar’s largest fixed-income positions skew toward much targeted recognition exposures and instruments that let sharper positioning crossed the curve. Compared with those holdings, wide firm enslaved vulnerability offers diversification, but astatine the outgo of flexibility erstwhile complaint expectations shift.

The money itself delivered a coagulated 7.51% full instrumentality implicit the past year, reflecting the tailwind from declining yields and unchangeable recognition spreads. For semipermanent investors, that matters. Gains similar that tin beryllium arsenic overmuch astir macro conditions arsenic information selection, which makes rebalancing aft beardown show a rational portfolio determination alternatively than a bearish call.

Put simply, this looks much similar duration absorption than an effort astatine marketplace timing. Investors utilizing wide firm enslaved funds should beryllium wide connected what they own: diversified recognition vulnerability paired with complaint sensitivity. That operation works good successful easing cycles, but it demands subject erstwhile conditions change.