Investor Insights: Burns Matteson and the Allure of iShares Treasury Bond ETF

In a move that sent ripples through the often stagnant waters of fixed-income investing, Burns Matteson Capital Management, LLC recently disclosed its foray into the intriguing world of the iShares 7-10 Year Treasury Bond ETF (IEF). On October 16, 2025, it revealed a delightful little acquisition priced at approximately $2.56 million-a sum that sounds rather pleasing against the backdrop of the turbulent financial landscape.

What Happened

According to a dutiful filing with the Securities and Exchange Commission dated October 16, 2025, the aforementioned firm has boldly established a new stake in the IEF, purchasing around 26,550 shares. As someone who regularly finds himself vexed by the enigma of both markets and human behavior, I can’t help but admire the audacity of this investment. This marks the fund’s foray into IEF, nudging their collection of reportable positions up to an impressive 192. Imagine the paper clutter!

What Else to Know

This new position is not just a whimsy; it accounts for a modest 1.01% of the fund’s assets under management by the end of Q3 2025. In case your mind drifts toward satellite imagery of the fund’s top holdings, let’s paint an aerial view:

GLW: $27.74 million (11.0% of AUM) as of the end of Q3 2025
SPHQ: $16.17 million (6.4% of AUM) as of September 30, 2025
COWZ: $10.89 million (4.3% of AUM) by the close of Q3 2025
IWY: $8.86 million (3.5% of AUM) as of September 30, 2025
SCHD: $6.93 million (2.7% of AUM) as of September 30, 2025

As of October 15, 2025, IEF shares were changing hands at $97.10-a 1.0% uptick over the preceding year. Yet, let us not forget that this performance has lagged behind the mighty S&P 500 by 8.5 percentage points. Ah, the fickle mistress of the market!

The IEF, with its trailing twelve-month dividend yield of 3.7% as of October 16, 2025, was tantalizingly close-just 0.1%-from its 52-week high. It feels like watching the neighbor’s cat stride confidently across the fence, yet just barely missing that enticing spot on the warm patio.

Fund Overview

Metric	Value
Price (as of market close October 15, 2025)	$97.10
Dividend yield	3.7%
1-year total return	1.0%

Fund Snapshot

The iShares 7-10 Year Treasury Bond ETF (IEF) opens up a rather curious gateway to intermediate-term U.S. government bonds. Picture a somewhat stolid figure in a tweed jacket pulling you into its world-a charming asset base of $38.9 billion and an annualized dividend yield of 3.7% (both figures as of October 16, 2025). The fund aims to offer stable income while dancing cautiously around the moderate risk of interest rate fluctuations. It accomplishes this through a portfolio comprised of high-quality U.S. Treasury securities, which is rather reassuring, honestly.

Investment strategy: The fund endeavors to follow the performance of the ICE U.S. Treasury 7-10 Year Bond Index, focusing predominantly on U.S. Treasury securities that are nestled comfortably between seven and ten years. Think of this as a cozy library, filled with neatly organized books for your reading pleasure.

Portfolio composition: It curates a delightful assortment of U.S. Treasury bonds, ensuring that at least 90% of its assets align with government securities that meet its lofty standards.

Investor base: IEF attracts both institutional and individual investors-those fine souls in search of intermediate-term U.S. government bond exposure. It’s like a two-for-one sale at your favorite shop.

Foolish Take

Burns Matteson’s recent acquisition of about $2.6 million worth of IEF shares serves as an intriguing cue for everyday investors to consider a closer look at this ETF. After all, could there be a little corner for it in their portfolios? In short, the IEF represents a fixed-income offering, stepping away from the ever-wobbling stock market and instead meandering through the realm of bonds, bills, and notes issued by governments, municipalities, and corporations. It’s a bit like choosing a stroll along a quiet forest path instead of bounding through an overcrowded amusement park.

For fixed income enthusiasts, yield is indeed the golden ticket. The IEF currently boasts a dividend yield of 3.7%, snugly in the same neighborhood as ExxonMobil, which tends to pay a similarly enticing amount. However, herein lies the crux: Given that IEF primarily holds bonds-those courteous securities with less volatility-its yield tends to be remarkably consistent, a rarity in the tumultuous waters of stock dividends.

To illustrate: Year-to-date, the IEF’s dividend yield has meandered within a tight band, ranging from 3.58% to 3.79%, while ExxonMobil’s yield swings like a pendulum between a high of 3.88% and a low of 3.26%. It’s enough to make one dizzy!

This delightful dependency on interest rates helps investors who favor the calmer waters of stability and predictability. Therefore, a careful examination of the iShares 7-10 Year Treasury Bond ETF (IEF) may just yield wondrous results for retail investors looking for a solid fixed-income ETF.

Glossary

ETF (Exchange-Traded Fund): A fund traded on stock exchanges; it’s like a box of assorted chocolates, holding assets such as stocks or bonds.

Assets under management (AUM): The total market value of assets managed on behalf of clients-it’s a bit like counting sheep but far less relaxing.

Dividend yield: Annual dividends as a percentage of the current price, a figure that can bring a glimmer to your eyes.

Trailing twelve-month (TTM): The most recent 12-month stretch of financial recollections, preserving the past as one would a beloved diary.

Benchmark index: A steadfast measure against which fund performances are compared-and yes, it can be very judgmental.

Portfolio composition: How the various assets in an investment portfolio are arranged-akin to balancing a delightful array of fruits in a bowl.

Intermediate-term bonds: Bonds that come of age between five and ten years-dare I say, they’re a bit like teenagers?

Reportable position: A significant holding that must be disclosed out of sheer necessity-like a family secret that’s somehow gotten out.

Dividend: Payments from a company or fund to its shareholders, typically via profits, akin to being served tea and biscuits after a meeting.

Holdings: The individual assets claimed by a fund or portfolio, think of them as trophies in an investor’s cabinet.

Index replication: Crafting an investment strategy that mirrors a specific index, similar to how one might replicate a particularly delicious recipe.

Interest rate risk: The looming specter of potential investment losses induced by fluctuating interest rates, much like the unpredictability of British weather.

Happy investing! 🌱

2025-10-17 17:07