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SGOV you will pay fed tax on, but not a bad option, PULS you will pay both fed and state tax on because it is not gov bond fund. I would look into CA Specific Muni bond funds such as OCAYX. Yield is about 4.44% but that is Fed and state tax free. Because it is not short-term bonds, you will see some ups and downs (MUB has the same issue but won't be CA state tax free). If you prefer almost no volatility you could look into either CALI, or DFCMX which are California specific short term bond funds. They will have less yield and less volatility.