This Firm Is Locking In Yields with Treasuries — Here’s What Investors Should Know

Moseley Investment Management significantly increased its holdings in the iShares iBonds Dec 2026 Term Treasury ETF (IBTG) during the third quarter, purchasing 154,978 shares for an estimated $3.5 million. This transaction brings their total IBTG position to 366,533 shares valued at $8.4 million, representing 2.6% of their assets under management. This strategic move, alongside other short-term Treasury fund additions, suggests a defensive rebalancing to lock in yields and manage duration risk, while maintaining substantial equity exposure.

Analysis

Moseley Investment Management significantly increased its position in the iShares iBonds Dec 2026 Term Treasury ETF (IBTG) during the third quarter, acquiring 154,978 shares for an estimated $3.5 million. This transaction boosted their total IBTG holding to 366,533 shares, valued at $8.4 million, now representing 2.6% of their assets under management. This strategic move, alongside additions to other short-term Treasury funds, indicates a clear rebalancing towards fixed income.

The increased exposure to Treasury ETFs suggests a defensive tilt, prioritizing capital preservation and income generation amidst potentially stretched equity valuations. IBTG, a term ETF tracking U.S. Treasury securities maturing in 2026, offers a 12-month trailing yield of 4.1% and a 1-year total return of 3.6%. Its 3.7% yield to maturity, short 0.67-year duration, and low 0.07% expense ratio position it as a low-risk option for predictable income.

Despite this defensive shift, Moseley maintained substantial equity exposure, with Apple, Microsoft, and Alphabet remaining top holdings, suggesting a balanced approach rather than a full retreat from growth assets. While IBTG's 0.3% annual gain significantly lagged the S&P 500's 18% return, its role is clearly defined as a capital preservation and duration management tool. This activity highlights a prudent trend among wealth managers using defined-maturity Treasury ETFs to lock in yields and manage interest rate risk.

Key Decisions for Investors

• Consider incorporating defined-maturity Treasury ETFs like IBTG for capital preservation and predictable income, particularly in environments of high equity valuations or interest rate uncertainty.
• Evaluate portfolio rebalancing strategies that blend defensive fixed-income assets with core equity holdings to manage overall risk and capture diverse market opportunities.
• Monitor the yield-to-maturity, duration, and expense ratios of term ETFs to ensure alignment with specific income and risk management objectives.