Smart Money Doubles Down on Bond ETF as Tech Rally Cools Investor Appetite

Heirloom Wealth Management just made a bold move in the fixed-income space, significantly expanding its position in PIMCO Active Bond ETF (NYSE: BOND). The wealth manager purchased 40,231 additional shares during the third quarter, pushing its total stake to 482,494 shares worth approximately $45.04 million—a move that signals confidence in fixed-income strategies amid volatile equity markets.

When Bonds Become the Anchor

According to the SEC filing dated November 10, 2025, Heirloom’s $4.27 million position increase represents a strategic rebalancing toward stability. What’s particularly noteworthy: BOND is now the fund’s largest single holding, commanding 10.88% of its reportable assets under management. This isn’t a casual allocation—it reflects institutional conviction about the role bonds should play in a diversified portfolio.

The fund’s holdings tell an interesting story. While tech stocks like Alphabet ($31.91M, 7.7% of AUM), Nvidia ($29.51M, 7.1%), and Microsoft ($28.03M, 6.8%) remain significant positions, they’re now substantially smaller than the bond ETF stake. The message is clear: even as the S&P 500 has surged on artificial intelligence euphoria, sophisticated managers are hedging with fixed-income exposure.

The Bonds Are Quietly Working

PIMCO’s actively managed bond fund employs a flexible mandate across investment-grade debt with selective high-yield allocations (up to 30% of assets). As of November 9, 2025, BOND shares traded at $93.49, having delivered a 7.34% one-year total return while yielding 5.07% annually. Yes, the ETF underperformed the S&P 500 by 5.32 percentage points over the past year—that’s the trade-off investors accept for lower volatility and steady dividend income.

The fund’s monthly rebalancing and dividend payments appeal to investors seeking predictable income streams. Its holdings span U.S. Treasuries, agency bonds, corporate credit, mortgage-backed securities, and asset-backed securities, providing diversification that equity-heavy portfolios typically lack.

What This Means for Your Portfolio

Heirloom now manages 43 reportable positions totaling $413.9 million in 13F assets. The conscious shift toward bonds—especially when combined with meaningful tech holdings—suggests a sophisticated risk-management mindset. The fund isn’t abandoning growth; it’s simply recognizing that bond ETFs offer structural advantages: liquidity, professional management, monthly income, and portfolio stabilization during equity volatility.

BOND’s $5.91 billion in assets and focus on risk-adjusted returns make it a proving ground for institutional-grade fixed-income allocation. For individual investors watching this move, it’s a reminder that even during bull markets driven by mega-cap tech, the institutional playbook includes substantial bond positioning.