Tillman Hartley Rebalances Investments
Tillman Hartley LLC Reduces Real Estate ETF Holdings, Boosts Fixed-Income Investments
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Key Points
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In the 4th quarter, Tillman Hartley LLC reported it sold 9,792 shares of the iShares U.S. Real Estate ETF (IYR), leaving it with 3,175 shares valued at about $298,000 in its SEC 13F.
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Other institutions were also making notable, specific moves in IYR—e.g., Assetmark Inc. increased its stake by 145.9% in the 4th quarter, ending with 268 shares valued at about $25,000.
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For the Dimensional National Municipal Bond ETF (DFNM), Tillman Hartley LLC said its position represented approximately 0.22% of the ETF, with holdings worth about $4.305 million.
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In DFNM-related coverage, the article also provided market context: DFNM opened at $48.26, and its 1-year low was $47.15.
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For the Dimensional Short-Duration Fixed Income ETF (DFSD), other investors added as well—for instance, Jane Street Group LLC bought a new position in the 4th quarter reportedly worth $2.51 million.
Tillman Hartley LLC slashed its stake in the iShares U.S. Real Estate ETF (IYR) by 75.5% in the fourth quarter, selling 9,792 shares and leaving the firm with just 3,175 shares worth about $298,000, according to its latest SEC 13F filing. The Orlando-based investment manager used the freed-up capital to load up on short-duration and municipal bond ETFs, signaling a deliberate shift away from real estate and toward income-focused safety.
The firm boosted its position in the Dimensional Short-Duration Fixed Income ETF (DFSD) by 18.1%, bringing its stake to 368,178 shares valued at roughly $17.7 million — now its 6th-largest holding. It also raised its allocation in the Dimensional National Municipal Bond ETF (DFNM) by 20.9% to 89,361 shares worth about $4.3 million.
A Massive Real Estate Exit Reshapes the Portfolio
Tillman Hartley's IYR cut is not a minor trim — it is a near-total exit. Before the reduction, the firm held roughly 12,967 shares. Now it holds 3,175. The remaining stake is worth just $298,000, a rounding error compared to its fixed-income positions. The iShares U.S. Real Estate ETF tracks U.S. real estate companies and has gained 10.44% year-to-date, according to BlackRock.
Not every manager shares Tillman Hartley's skepticism. Assetmark Inc. moved in the opposite direction, increasing its IYR stake by 145.9% in the same period, ending with 268 shares valued at about $25,000. Proponents of real estate point to IYR's 2.19% trailing dividend yield and strong occupancy at top holdings like Prologis and Welltower, according to Motley Fool.
Municipal Bonds and Short Duration Become the New Core
The DFNM position now represents about 1.1% of Tillman Hartley's total portfolio and about 0.22% of the ETF itself. The fund opened recently at $48.26, with a 52-week low of $47.15. Analysts note that national municipal bonds currently offer a tax-equivalent yield of around 5.36%, making them attractive for tax-sensitive institutional investors, according to S&P Global.
The DFSD position is even larger. At $17.7 million, it now ranks as the firm's 6th-biggest holding. The fund carries a 30-day yield of 4.18% and manages $6.87 billion in assets. Jane Street Group LLC also entered DFSD during the period, opening a new position worth $2.51 million, showing broad institutional appetite for the strategy.
Rate Environment and Stagflation Fears Drive the Shift
The Federal Reserve cut rates three times in 2025, bringing the federal funds rate to a range of 3.50%–3.75%, according to S&P Global. That easing cycle made short-duration fixed-income strategies more attractive. But the Fed has since paused, and inflation concerns have not gone away. Robert Selouan of State Street Global Advisors warned that "stagflationary pressures have eroded traditional diversification," urging investors toward "shorter-duration and income strategies," according to State Street Global Advisors.
The passage of the "One Big Beautiful Bill Act" in late 2025 also reshaped the municipal bond market. The law preserved federal tax exemptions for infrastructure and energy-related private activity bonds, helping drive record municipal issuance of $580.4 billion in 2025, according to S&P Global. That technical backdrop — strong demand, limited supply — supports higher prices in funds like DFNM.
Active Fixed-Income ETFs Capture Institutional Momentum
Tillman Hartley's moves fit a broader trend. J.P. Morgan Asset Management found that while only 17% of fixed-income ETF assets are actively managed, nearly 40% of new U.S. flows are going into active strategies, according to J.P. Morgan Asset Management. Both DFNM and DFSD are actively managed by Dimensional Fund Advisors, overseen by fixed-income leads David A. Plecha and Joseph F. Kolerich.
The global fixed-income ETF market is forecast to hit $6 trillion by 2030, according to J.P. Morgan Asset Management. Tillman Hartley's concentration in DFSD and DFNM — combined worth over $22 million — puts the firm squarely in line with that institutional shift. The firm's 13F for the quarter ended March 31, 2026 was signed by Benjamin Cannon, Partner and Chief Compliance Officer, according to SEC Filing.
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