Tortoise Changes Positions Across Five ETFs
Tortoise Changes Positions Across Five ETFs
Anonymous
Key Points
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The Vanguard Intermediate-Term Treasury ETF was Tortoise Investment Management’s 17th-largest holding, accounting for approximately 1.4% of its investment portfolio and valued at $18.828 million at the end of the reporting period.
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VanEck Long Muni ETF shares opened at $16.86, matching the fund’s 52-week low; the fund tracks a market-value-weighted index of investment-grade, tax-exempt U.S. municipal bonds with nominal maturities of at least 10 years.
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DoubleLine Mortgage ETF is an actively managed portfolio of investment-grade residential mortgage-backed securities of any maturity and seeks to outperform the Bloomberg U.S. Mortgage-Backed Securities Index. The fund launched on March 31, 2023, and is managed by DoubleLine.
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Tortoise’s Dimensional International Small Cap Value ETF holding was valued at $10.112 million after the second-quarter purchases, which added 200,399 shares.
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Schwab Intermediate-Term U.S. Treasury ETF shares opened at $24.17, near the fund’s 12-month low of $24.16; its 50-day and 200-day simple moving averages were $24.42 and $24.68, respectively.
Tortoise Investment Management LLC shifted its exchange-traded fund portfolio in the second quarter, moving money into government bonds, municipal bonds, and international stocks. The firm boosted its Treasury holdings and dramatically increased a small emerging-market bet, while cutting back on mortgage bonds. The moves signal confidence in fixed-income strategies and international value plays.
Treasury Holdings Grow Across Multiple Funds
Tortoise expanded its government bond exposure in the second quarter. The firm increased its Vanguard Intermediate-Term Treasury ETF stake by 12.6% to 319,219 shares, worth $18.828 million at quarter-end. It also raised the Schwab Intermediate-Term U.S. Treasury ETF position by 47.8% to 95,958 shares. TickerReport noted that Schwab shares traded near a 12-month low of $24.16, suggesting the firm bought during a dip.
Municipal Bond Bet and Mortgage Exit
The firm also moved into municipal bonds, raising its VanEck Long Muni ETF holding by 6.3% to 634,387 shares. The fund tracks long-term tax-exempt bonds and opened the quarter at $16.86, matching its 52-week low. Meanwhile, Tortoise cut its DoubleLine Mortgage ETF position sharply, selling down by 39.3% to just 19,336 shares. TickerReport noted the mortgage fund is actively managed and launched in March 2023.
Massive Push Into International Small-Cap Value
The most dramatic move was a 514.6% surge in Tortoise's Dimensional International Small Cap Value ETF holding, adding 200,399 shares to reach 239,340 total. The position swelled to $10.112 million after the purchases. This outsized increase suggests Tortoise sees value in smaller international companies, betting against U.S. dominance in equity markets.
Broader Pattern of Bond-Heavy Repositioning
The second-quarter changes paint a picture of a firm rotating toward fixed income and international diversification. While TickerReport also documented Tortoise increasing U.S. small-cap and broad equity holdings modestly, the sharp expansion of bonds and the dramatic jump in international value reveal where the firm sees the most opportunity. The moves suggest Tortoise expects interest rates and bond valuations to stabilize or decline.
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