Key Points
Added 40,169 shares of VWOB; estimated trade value $2.7 million based on quarterly average price.
Quarter-end position value increased by $2.9 million, reflecting both share additions and price movement.
Transaction represented a 0.25% change relative to reported 13F assets under management (AUM).
Post-trade VWOB stake: 386,534 shares valued at $26 million.
VWOB now represents 2.4% of 13F AUM, which places it outside the fund’s top five holdings.
On Feb. 2, 2026, McIlrath & Eck, LLC disclosed a buy of 40,169 shares of Vanguard Whitehall Funds - Vanguard Emerging Markets Government Bond ETF (NASDAQ:VWOB), an estimated $2.7 million trade based on quarterly average pricing.
What happened
According to a SEC filing dated Feb. 2, 2026, McIlrath & Eck, LLC increased its holding in Vanguard Whitehall Funds - Vanguard Emerging Markets Government Bond ETF by 40,169 shares during the fourth quarter of 2025. The estimated transaction value, based on the average quarterly closing price, was $2.7 million. The quarter-end value of the position rose by $2.9 million, reflecting both share additions and price movements.
What else to know
- The buy raised the VWOB stake to 2.4% of the fund’s 13F reportable assets under management.
- Top holdings after the filing:
- NYSEMKT: VUG: $79.2 million (7.4% of AUM)
- NYSE: STXT: $70.2 million (6.5% of AUM)
- NYSEMKT: VTV: $56.2 million (5.2% of AUM)
- NYSEMKT: DFSD: $54.3 million (5.0% of AUM)
- NYSEMKT: DFAI: $53.2 million (4.9% of AUM)
- As of Feb. 2, 2026, VWOB shares were priced at $67.29, down 1.4% from the 52-week high.
- One-year total return: 12.0%; underperformed S&P 500 by 4.9 percentage points.
- Annualized dividend yield: 5.9% as of Feb. 3, 2026.
ETF overview
| Metric | Value |
|---|
| AUM | N/A |
| Price (as of market close February 2, 2026) | $67.29 |
| Dividend yield | 5.87% |
| 1-year total return | 11.24% |
ETF snapshot
- Investment strategy: The fund employs an indexing approach, aiming to track the performance of an emerging markets government bond index through a representative sampling process.
- Portfolio composition: At least 80% of assets are allocated to government bonds from emerging markets, providing exposure to sovereign debt across diverse geographies.
- Expense structure: The ETF is structured as a non-diversified fund, with a focus on cost efficiency and broad market representation.
Vanguard Emerging Markets Government Bond ETF offers investors targeted access to sovereign debt markets in emerging economies, leveraging an index-based strategy to deliver broad exposure. Its competitive dividend yield and disciplined portfolio construction make it a core holding for those seeking income and diversification within global fixed income allocations.
What this transaction means for investors
Institutional investors were processing changing market conditions as they entered the new year. Interest rates are in flux following two rate cuts by the Federal Reserve in the fourth quarter. Investors are anticipating lower interest rates over the next year, which would favor buying high-yield bond funds.
Higher bond yields will look more attractive in a lower-rate environment. Bonds also have an inverse relationship with underlying rates. When bond prices go up, rates fall, and vice versa. Buying shares of a high-yield bond fund like VWOB, which offers better returns than U.S. bonds, could pay off in that scenario.
The fund manager reduced its position in its largest holding, the Vanguard Growth Index ETF (VUG), while boosting stakes in several of its other top bond fund holdings. This is a classic rotation from risk (stocks) to safe havens (bonds). Adding shares of VWOB increases yield while also benefiting from a weakening U.S. dollar, which provides a hedge against slowing economic growth.
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John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Vanguard Index Funds - Vanguard Growth ETF and Vanguard Index Funds - Vanguard Value ETF. The Motley Fool has a disclosure policy.
