This Fund Put $106 Million to Work at a Nearly 4% Yield

Core Viewpoint - Nicholas Hoffman & Company has significantly increased its investment in the Vanguard 0-3 Month Treasury Bill ETF (VBIL), acquiring 1,411,985 shares valued at approximately $106.59 million, indicating a strategic move towards low-risk, short-term investments [1][2]. Company Overview - The Vanguard 0-3 Month Treasury Bill ETF aims to provide a liquid, low-risk investment option for short-term cash management by tracking U.S. Treasury bills with maturities under three months [6]. - As of February 2, the ETF's price was $75.64, with net assets totaling $4.64 billion and a dividend yield of 3.6% [4]. Investment Strategy - VBIL focuses on maintaining a portfolio with minimal interest rate risk and high credit quality, appealing to risk-averse investors and institutions [6]. - The fund operates as a passively managed investment vehicle, seeking to track an index of U.S. Treasury bills with maturities of three months or less, emphasizing capital preservation, liquidity, and stable income [9]. Recent Transaction Impact - The recent purchase by Nicholas Hoffman & Company means that VBIL now constitutes 3.15% of the fund's 13F assets under management (AUM) [3]. - The fund's expense ratio is low at 0.06%, and it recently offered a 30-day SEC yield of 3.56%, highlighting its appeal as a low-risk investment option [10]. Portfolio Composition - Nicholas Hoffman & Company's largest positions remain focused on equities, with a significant portion of assets in broad U.S. and international stock ETFs, alongside a 9% allocation to Berkshire Hathaway [11]. - The allocation of just over 3% of AUM to ultra-short Treasurys like VBIL reflects a balanced approach rather than a cautious stance [11]. Market Context - Holding liquid assets like VBIL allows for quick capital movement when investment opportunities arise, suggesting a strategy of patience with optionality rather than a definitive market call [12].