JAAA
Janus Detroit Street Trust - Janus Henderson AAA CLO ETF
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Then you can't hold anything in your portfolio other than SGOV and maybe JAAA. There's always the possibility of a crash. Maximize your income, minimize your spending. Gambling on stocks is just as likely to make you less wealthy than you could've been by 38.
Moving assets to income producing securities should be done before you get to retirement to secure reduce your risk. BND is a good choice but there are many good choices. Funds like JAAA 6% yield, JBBB 7.8%, CLOZ 8%, UTF 7%, and UTG% 6.3%. All have higher yield than BND and other government bond funds and historically are very safe investments. less safe but still not terribly risky are PFFA 8% yield, PBDC 9%. But you also need to factor in your expected income needs. you need to have a good estimate of your income needs in retirement and then gradually work on configuring your portfolio to generate more than that income. IF your account generates more than you need and you reinvest the excess income you will never run out of money.
100k VTI, 20k VXUS, 20k QQQM, 10k JAAA
Park your current money in JAAA or similar until after the Supreme Court rules on the tariffs and the government is back open again and the picture is more clear. Or buy things that are devalued currently. Euro stocks you said yourself in particular in France due to political turmoil there are at a discount. Critical element miners may have room to run here and in Australia depending on how negotiations with China go. I don't know. I'm holding until the tariff ruling. It may be priced in already I have no idea but it's the next catalyst I see. Tech earnings will be in by then also and things will hopefully make more sense.
You’re very welcome. Yeah the timezone is a pain, but also forces me to be disciplined. The US market shouldn’t be doing what it’s doing, based on the actions of the current administration. Who knows where it will end, but it won’t end well. I’m now concentrating on the call side more than the puts, I’m now at around 10% cash and looking to get to around 30% over the next month or two. I also have some hedge contracts in place on SQQQ which will protect around 25% of the remaining portfolio in case of a market crash. I’ll continue with options right the way through, but honestly the senses are tingling right now haha. I’ve been sitting on 20% cash in my four fund portfolio (using JAAA to squeeze a bit of yield) but remain 100% invested in the dividend account. All have margin available for after whatever crash happens. I’m too close to retirement to be taking more risk than that. It’s been a fantastic year, I’m up over 35% across all accounts so I’m being super cautious from here for a while. Watch then, as the market continues to rip up another 25%!
Most peop le keep money money market fund or HYSA. This is find with 6 months of cash but if you are unemployed at the start of recession you could be out of work for a year or more. At that point your emergency fund is gone Now what? At some point it is better to invest the money into dividend fund that will provide continuous income. Say you have an emergency fund that has grown to 100K. If investing in a HYSA account yielding 5% you get 5000 a year of income. But if invested in a fund with yield 10% you are getting 10,000 a year. pu that to 12% and you now get 1K a month of income Enough to cover basic needs. It is not unusual to see people with 300K in a HYSA. That could generate 30K a year, just under 3K a month of income. Now if you need money you don't need to liquidate the fund for money. You can set up a brokerage account so that all the dividend money will go into money market account. So you can have a 6 month emergency fund. And if the cash fund is large enough you can reinvest the money back into the dividend fund for more passive income. The passive income could be a bond fund or a safe CLO fund (JAAA 6%, and CLOZ 8%). Or it could be a higher yield fund like QQQI 13% yield is a good choice. In addition to its high yield it is also tax efficient. With a good dividend fund you could keep your emergency fund full and grow passive income Eventually you could build the dividend fund to produce enough inocme to produce enough income to cover all of your live expenses.
No emergency fund. Take out margin against your assets if you need the cash Plenty of places to earn good interest like CLOZ, JAAA, etc
At that point I would go for JAAA which is practically like a bond but has over 5% returns
I like JAAA. It's above cash/money market on the risk score but the additional risk is compensated by a higher yield.
A mixture between stocks and bonds. like 60% VT + 40% BNDW. For corporate bonds, you may buy JAAA/PAAA/CLOA, but honestly BNDW is fine as it includes corporate bonds
Hold gold, bitcoin, and bond like stocks such as VZ. Also BDCs like MAIN or a BDC ETF like PBDC. These are not correlated to the equity market directly. On some red days I see all of these go up and vice versa. These will smooth out the volatility. Also hold corporate bond funds like JBBB or JAAA or even STRC which pays 10% and has stable nav.
I’m up over 50% since Feb. Trimming here back to the roots, sitting in JAAA for a while. 57M, retiring in 2 years so pivoting to income.
you might want to invest in funds like eCLOZ 8% yield, JAAA6% yieldThese are CLO funds basically it is a loan obligation that collateral backing the loan. So if the company with the loan goes into default the collateral is liquidated and you get your money back. UTG 6.3% yieldand UTF 7%yield. both are utility funds but there is very little overlap in there investments. The utilities are regulated and are not going bankrupt and shutting down suddenly. All very safe dividend investments. This limits your exposure to the higher valuations of growth funds for now. * This would generate 13K a year and you could invest all that income into growth index funds. Since you are buying in slowly you are basically dollar cost averaging your purchase. in 12 years you would have 200K in growth and 200K in dividend funds. * You can set up automatic monthly purchases of the growth using the dividend income you could also take half of the earnings and put that into roth and reinvest what is [left.in](http://left.in) growth funds. * You could also ignoregrowth funds and reinvest all the dividend back into funds that generated them. I about 12 years you will have 400,000K with about 26K a year of income. * If you loose your hob at any time and need income you can stop rienvesting the dividends and start recieving the cash during the next dividend payment. Which would be a bout a month. Note I am assuming you add no more money to the 200K. So the only money going in is the dividend income. of cource could add a new higher yielding funds for more income.
Depends on your definition of safe, but look at CLOA (or JAAA) or BCLO. I use BCLO for some of my parked cash and it doesn’t give me any heartburn whatsoever but others would run away screaming from the idea.
Instead of HYSA buy JAAA & JBBB.
Even if you were the worst investor in history and always lump summed the day before a downtown, you’d still be so much further ahead. With inflation, you have to think of your SPAXX as losing whether there is a downturn or not. You do you of course, but since you asked for advice. There is even a happy medium here. There are conservative dividend funds and closed end funds like JAAA or CLOZ that can earn you 6-9% with little volatility
Many low beta stocks or funds are Dividend stocks. So you could get: * Low beta * Low volatility. * and income At the same time without adding bonds cash in money market funds. you can get consistent dividend yields of 6 to 10% Which is better yield than banks money market or government bonds. And you can use the dividend to either increase your dividend over time by reinvesting it bank into the fund or stock. Or you could invest the dividend into more growth index funds. UTF 7% yield and UTG 6.3% yield are both good utility funds. Regulated stable companes. JAAA 6% yield and CLOZ 8%. These in collateral loan obligations JAAA invests In AAA rated loans and CLOZ invests in BBB rated loans. These loans are back by hard assets so it the company can't make its loan payment the assets can be sold to pay the investors. EIC 11% yield is a similar fund but it invests in CCC rated CLOs. Dividends are payed out generally quarterly or monthly. and it is not uncommon for dividend funds to pay out there dividend even if the stock price falls in a market crash.
It really depends what you mean by "a bit". TIPS ETFs are the most direct way to hedge inflation, but they’re still bonds—so they can have drawdowns when rates rise (2022 showed that clearly). If you want something less rate-sensitive, AAA CLO ETFs like JAAA or PAAA give you floating-rate exposure (income rises with short-term rates) and generally behave more like “enhanced cash”, though they carry some credit risk. For true short-term parking, ultra-short Treasury or money-market ETFs are safer, but they won’t keep up with inflation if it really spikes.
Bonds loose out to inflation because their yield is very close to the inflation rate. The long term average inflation rate is 3.2%. So you should be looking for yields of about 6 or higher. You could invest in CLO (collateral loan obligations with JAAA 6% yield from AAA rated loans. or BLOZ 8% BBB rated loans. There are two really good utility funds UTF 7% and UTG 6.3%. You could set dividend reinvestment to off. That way the cash then goes to a money market account earning about 3 to 4% You could spend or reinvest the money in the money market fund. I am retired and I use this aproach for my income. My income right now evceeds my living expenses. So 80 it spent and 20% is reinvested to insure my portfolio grows over time. Annuities are over hyped by marketing and often cost a lot fro the income they provide. And often the annuity locks you into that one investment for a long time. %
You can move the account to a brokerage without insuring taxes. I use fidelity. All you have to do is contact them provide them with he account number for the american express account number and fill outcome forms and they will mov the acount to fidelity. >I guess I realize I lost money by not putting it in stocks and by inflation. I just don't know what to do. IT is important to realize your fear of risk is is not based on your experience with your investments but your fear of not knowing what will happen. In most cases the fear is a lot larger than actual risk. In my IRA I have a bond fundFAGIX that ear a steady 5% yield but I also have JAAA 6%yield, CLOZ 8%, UTG6.3%, UTF 7%, PFFA 8%. All of these investments produce cash payments into your account regardless of what the share price will do.The share pirice may go down but the cash will still be deposited quarterly. Generally people like you do better with these investments. Now you can add up to 7000 a year into an individual IRA. I strongly suggest you do this every month. Over time as you get more failure with these funds your fear will drop. Some higher yields can be achieved with slightly more risk with funds like PBDC 9% yield, SPYI 11%. And you could put some money in VT. All of these do hold stocks. Start out small first and gradually increase the ammount. in them.
I picked up JAAA and JBBBs. I like playing the BBBs better because of the yield premium.
there are always people saying don't invest for X reason or invest for Y reason. Ignore all that and focus on understanding the investment your advisor is recommending read the prospectus for any funds an in general learn how to evaluate your investments. Your advisor can probably guid you or recommend classes or books to read to help you learn. Right now this is all new to you so I would ignore the news and focus on learning about dividend and growth investing and and evaluating 12K a month you are going to owe taxes on that. So keep that in mind and make sure you have have a tax advisor. But that said what i would do is invest the money in low risk dividend stocks. Such as JAAA 6%, UTG 6.3%, UTF 7%, CLOZ 8%, PFFA 8%. Eventually the money your are getting now will run out. When it does you want something to fall back on. All these funds generate cash dividends.
JAAA has a floating rate though. Different kind of risk.
Instead of a Treasury ETF, why not go with a corporate bond ETF that will provide better yields, while also mitigating risk through diversification? JAAA is one example of this.
IMO it's very low-risk. CLOA is very new, so doesn't complete Morningstar data yet, but it's basically a clone of the JAAA fund. Both only invest in AAA rated companies (the most creditworthy). Morningstar rates it as a 7 on a scale of 1 - 100 in terms of risk (1 is the lowest score you can get -- VOO is rated 75 on the risk scale). The price range for CLOA over the past year has been a low 50.61 and a high of 52.12, so you can see the price doesn't fluctuate much.
You could invest the money in JAAA 6% yield and JBBB 8% yield and PFFA 8% UTF 7% and UTG 6%.Thes all invest in different assets and provide a much better yield. These are dividend funds that pay out quarterly or monthly. Some higher yielding options are PBDC 9%, ARDC 10%,EIC 11%, and SPYI 11% the lower yielding funds are safest while the higher yielding funds have slightly higher risk. YOU will have to use a taxable brokerage acount for these funds. Set dividend investment to off. Cash will show up in the account and from there you can move that to your bank account. The higher yield of these funds will probably double your income. Any money you don't spend reinvest it for more income. Your taxes will go up due to the higher income. So you probably will have to make some adjustments to your tax withholding. I strongly suggest you read the book The Income Factory. and look at Armchair income on youtube.
I mainly do 3 fund portfolios 40/40/20 One is SPTM/SCHG/AVDE One is SPMO/XMMO/IDMO One is CWB/JAAA/BIL
Stable dividend funds like JAAA, CLOZ, MAIN, etc. these are stable and will pay you monthly
also look at PAAA run by PGIM - Prudential, paying 5.45% 30 day SEC yield, all AAA, and holds senior triple A compared with JAAA, holding more junior AAA
I'll check this out. Note PULS actually gained in 2022, and in the last year is pretty steady +/- <0.5%, but JAAA still worth a look for the yield "premium",
What type of an account? Where do you park something like JBBB or JAAA?
PULS SEC Daily Yield (Unsubsidized) as of yesterday 08/15/2025 is 4.48% per PGIM website JAAA per Janus website (As of 07/31/2025)30-Day SEC Yield - 5.32% JAAA will fall with FED Funds as well due to short term variable rate funding, JAAA is >95% AAA rated CLO with no AAA rated default in US history, and during 2022, worst year for Bonds since 1777, JAAA fell 3.2% then gained it back over 15 months. So that's the biggest downside risk. may be another good place to park some cash?
PULS SEC Daily Yield (Unsubsidized) as of yesterday 08/15/2025 is 4.48% per PGIM website JAAA per Janus website || || |(As of 07/31/2025)30-Day SEC Yield - Without Waivers |5.32%| JAAA will fall with FED Funds as well due to short term variable rate funding, JAAA is >95% AAA rated CLO with no AAA rated default in US history, and during 2022, worst year for Bonds since 1777, JAAA fell 3.2% then gained it back over 15 months. So that's the biggest downside risk. may be another good place to park some cash?
Nope. Not smart. Invest in almost anything and you can beat that. For example JAAA is highly rated AAA bonds that yields 5.76. Try out SPYI for 10% income or MAIN for growth plus income. So many options.
If you are willing to entertain some risk, you could look at CLOA (roughly 6% per year) or JAAA (similar).
HYSA, JAAA, or JBBB. I hold most of my money needed in the short term in JBBB. It pays about 7-8% with a monthly dividend, and the prices stay very stable. JAAA is the less volatile of the two, but only pays about 6%. Rate cuts are incoming, so those yields will go down as the loans in the portfolio mature.
I had started selling some SGOV the last month or so for TLT. the underlying value moves might be my "cash" soon. Up about 2.0% on that now. Might convert more SGOV to TLT on a pullback after today. Also have a little JAAA but just feeling it out. Haven't held it before.
JAAA or JBBB if you’re feeling a little frisky.
I'm in a similar position (less $$'s though) and I have that money split between most in SGOV and some in JAAA.
No, a lot of stuff is going down this week. The Fed meeting happens, and while it’s almost a lock that they won’t cut, people are wanting to see if they forecast anything or want the other Fed board members say or vote on. Secondly, the jobs report comes out as well. Lastly, it’s an important week for corporate earnings with Amazon, Apple, Meta and Microsoft. If above estimates and guidance is good, market up. If they underperform or cut guidance, then a drop may happen. While nobody knows from day to day, (I m an advisor and this market is not logical) especially with this admin, I would dollar cost average into the market and you can have the funds in a CLO ETF while waiting for 3 or 6 months. That way, it avoids market timing, which is my all VA’s (variable annuity) have that option to smooth out your average price. On CLO thing, JAAA or PAAA is safer or can go w/JBBB for interest, but it’s a little more volatile/risky as rating suggests.
I had a similar question the other day, it was deleted by mods but someone recommended JAAA and after looking into it I think it will do about 1.5% better than SGOV or a money market after taxes. Hope you extract some value from your post before it gets removed.
This is exactly what I would recommend OP do, but I answered JAAA/JBBB because of the ask.
JAAA. It’s a low risk fund made up of loans with AAA credit rating. Pays about 6% annual yield on a monthly basis. It’s very safe and conservative. I trust it more than treasury bonds. You can also try JBBB. A little more risk, but also more yield closer to 8% paid monthly.
JAAA pays 5.4% yield GDMN holds Gold and miners and pays 5.5% yield
Why does everyone seem to think there are no financial products between T-Bills and the S&P500? There are dozens of options, like AAA-rated CLOs or preferred equity like STRD, that provide return way better than the risk free rate while taking on only the slightest amount of risk. It has been *impossible* to sell something like $JAAA "at a loss" post-2008 GFC. It rally seems to me a bunch of nervous nellies trying to keep the rest of the crabs in the bucket. Sorry but my portfolios manage 30%+ returns every year and no weak minded person can convince me to waste my capital by letting ANY of it sit in a HYSA. You might think I'll get destroyed in a downtown, but I made money in 2022 and early this year as well. Whoops.
JAAA, and CLOZ if you prefer.
2% in JAAA and VTIP that I count as cash
7-10 years is a big time frame for a HYSA but a bit iffy for the S&P. If I were in your shoes and had any portion that was saved outside the emergency fund that I wanted to put towards the House, I might consider shopping around for a 5-6 yr CD as I’m expecting rates to drop. I could also consider going in with a low-to-medium risk corporate bond, something like JAAA or slightly more risky or with higher yield like JBBB. If I were to go into stocks, I’d probably look into something that uses an option strategy to limit potential losses. QQQH from Neos would be one I’d consider in your shoes.
ETFs that seem fairly common on reddit (SPYI, QQQI) are blocked. its allowed now, but i recall a time when JEPI/JEPQ were blocked. i recently wanted to add some CLO ETFs and almost all of those were blocked. JAAA is the only one i could buy in merrill.
I'm an IT guy myself, done coding and have a pretty good understanding, so I feel like I'm a good person for feedback! A few more thoughts: \* For the "Live Data" - A "Refresh" button perhaps? \* For the 'Call/Put', perhaps a "Buy/Sell"? I generally "Wheel" which this looks to be setup for, but would likely be useful for examining buying and selling Calls vs Puts (might as well cover it all), but I realize this is a free project your using for yourself lol and again, I mostly Wheel, sometimes buy calls, naturally bullish, having bought many puts, tried a bit recently w/ trump tariff stuff and got burnt. Honestly, If I'm not confident enough to be bullish, I buy SGOV/JAAA lol, but I digress. Really looking forward to seeing this when the PUT part works! Feel free to DM me if I can help or just to keep me updated as things progress...
I also prefer PAAA over JAAA. All those funds are more risky during SGOV. Expect volatility between 1-5% during a market crisis.
JAAA (tho I prefer the slightly less risky PAAA) is a solid choice, however it is not really an alternative to SGOV. It is low risk but in very bad times you could possibly even lose on your total return. In the moderate bad times year to date, JAAA is +1.63% versus SGOV's 1.63%. (PAAA is +1.90%.)
Yesterday's action was triggered by a massive selloff in AAPL after Jony Ive announced his merger with OpenAI (note the timing of AAPL's decline compared to the rest of the market). Then, numerous news items showed up, including a $16 billion 20-yr auction, and then, considering treasury yields, several institutions opted to exit. Now, it's not about the US not being a good credit risk. It's about bond investors expecting to receive higher returns because the credit risk is no longer as pristine as it once was. Your perception is on the right track, but keep those suggestions in mind. Also, keep an eye on the credit market. If JAAA or Munis start to move like meme coins again, that's when you run for the hills.
How will this affect ETFs like JAAA and JBBB?
JAAA >> CLO (NOT CDLs, different vehicles) AAA rated ftw on high holding yields
Appreciate the details about the default rates and risk. I was missing that. >What I have been doing is a money market for for Cash A mix of high yield stock dividend funds and loan obligations with a goal of about 10 separate funds. Like a mixture of VMFXX, SPYI/JEPI, and JAAA/CLOZ? Here is my updated scenario based on your info: name | old | new | change ----|---|---|------ SGOV | 50K | 40K | FLOT | 30K | 0K | dropped, underestimated JAAA's stability JAAA | 20K | 40K | CLOI | 20K | 0K | dropped, redundant JBBB | 10K | 0K | dropped, redundant CLOZ | 10K | 20K | SPYI | 0K | 40K | replaces some CLOs, tax efficient vs. JEPI/Q total | 140K | 140K | still 100K in fixed, now 40K in high-div. volatile stocks yield | 5.3% | 7.5% |
$JAAA, $BSV (short end corp plus government) and VGLT (lower fee TLT.) $BLV is long end corp plus govt. I bought some TMF today for a trade.
Forgot to mention that I plan to gradually move the JBBB, CLOZ, and CLOI (40K total) into VOO. That's the "play" money. For now, I want to keep them somewhere with better yields than SGOV. I know you're not supposed to time the market but I want to have that 40K in hand in case the market tanks later this year due to tariffs, inflation, job losses, or Elon Musk sniffing a bad batch of ketamine. It's fine if I'm wrong and miss out on larger gains. Personally I'd rather risk having smaller gains if it means having a chance to buy at a big discount. Basically, 100K will remain in what I assume are reasonably safe options: SGOV, FLOT, and JAAA. I have both FLOT and JAAA in the mix because they are built differently and presumably would behave differently under a stress. A further "diversification", if you will. The other 40K in cash, which I would not need to withdraw immediately and could wait longer for their prices to bounce back, would remain in these higher-yield places and eventually invested into VOO when there is a dip or bear. TLDR: If I wasn't so greedy I'd just store the "need ASAP" money into SGOV and the rest into stock ETFs, but I *want* to time the market and I want to keep the standby cash into a higher yield place the risk of which is reasonably managed.
I would put the 100k in SGOV (because that's your key amount). The rest you can just go 50% JAAA and 50% CLOI. I wouldn't personally go with your choices here. I have a similar need in one of my accounts so what I did was I put the needed money in short duration treasuries and the rest went to more complicated income etfs like SPYI.
The goal is to balance between maximum yield, reduced volatility, and liquidity, so I will likely have access to 100K at any given time without having to sell the stocks. 60K will be in stocks. I won't touch them because there might be a bear market in a few years, who knows. The remaining 140K will be in fixed income assets, of which 40K (JBBB and CLOZ) will pay the highest rate but could default and I could theoretically permanently lose that 40K, leaving me with 100K. I suppose the JAAA and FLOT could also TEMPORARILY lose value but I believe they do not lose value drastically and they recover much faster, which is why I have this "ladder" of safety and risk. Is there a flaw in this logic? I don't want long duration bonds like BND because of how they got decimated in 2022. I cannot rule out another rate hike soon if we have a high inflation so I don't want long term treasuries, but I'm also too greedy to put everything in the "low yield" SGOV. I should also mention that I have taken into account the fact that SGOV is state tax exempt while the others are not. I've also looked up CDs but they seem to pay a lower rate and I'm not a fan of locking up the funds. But I'm open to suggestions.
Russell's explanation is good but I have a little more info[ here](https://www.reddit.com/r/dividends/comments/1kix1x6/comment/mrk3ltw/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button). The biggest risk, by far, with CLOs is liquidity. Further, the tranche ratings AAA or BBB have nothing to do with the credit rating of the underlying assets. JAAA is quite large and liquidity really shouldn't be a big issue.
CLO stands for Collateralized Loan Obligation. It’s essentially a type of debt that has some type of collateral against it. Specifically business loans. AAA and BBB are rankings of the loans, based on credit worthiness of the borrower. AAA is the safest rating, then AA, then A, then BBB, then BB. The lower safety it is, the higher the interest rate charged to the borrower. Companies have packaged these loans into ETFs like JAAA, JBBB, ICLO, CLOZ, etc. Like with the interests rates on the loans, the safer ratings yield smaller amounts while riskier ratings yield larger amounts. Safer ratings also see more stable prices while riskier ratings may see more price movement. JAAA and ICLO are currently yielding a little over 6%. JBBB and CLOZ are currently yielding 8% and 8.5% respectively. I categorize these this way: HYSA is extremely safe with no chance of losing money but pays the smallest yield. Good for essential emergency funds I may need access to at any time / less than 48 hours. AAA CLO ETFs are very safe, may see minimal price movements, but yield more than an HYSA. Good for extended savings (like a house down payment or a vacation fund) and emergency fund amounts that I won’t need immediately since it may take a bit of time to sell and transfer them to a bank to become usable (so 1 month of transfer time in the worst case scenario). BBB CLO ETFs are somewhat safe. They could see more price movement but yield more than the AAA CLOs. Best for cash you won’t need for a while as you may need to wait for price recovery before selling. Basically the “last resort” portion of your emergency fund. These also make a decent conservative investment option when rates are high - an 8% return is nothing to sneeze at.
Your emergency fund should be based on your monthly expenses. Generally recommended amounts are 3 months, 6 months, or even up to 12 months of expenses. This is largely based on how long you think it might take to find a new job if you were laid off. Also, if you’re saving for a house, consider that separate from the emergency fund. You can also keep that in a HYSA but I like AAA CLOs as they yield a bit more and are very low risk. Something like ICLO or JAAA. You can also stagger the emergency fund - 3 months in an HYSA and everything beyond that in AAA or BBB CLOs.
It worked. 1. I stayed put after the 2024 elections — didn’t flinch. 2. I parked fresh income into SGOV and JAAA right after Trump won — played it safe, kept dry powder. 3. Then I waited for the tariff noise to hit — and boom, I dropped 200K straight into AI tech names from Seeking Alpha and some key ETFs. Now I sit back and wait — Fed cuts or tax relief, either one cracks it open. Hope that clears it up.
SGOV JAAA JBBB CLOZ SVWXX all variations to keep liquid is valid in current stream,volatility,government etc.
VMRXX, in my opinion. I got creamed by indexed bonds, nominal and TIPS in the last few years, and have vowed not to do that again. Right now for fixed income I like cash, VRIG, and JAAA. All short term, good quality, and higher yields than other bonds. Both funds have low Beta (volatility).
Why nobody recommending an CLO ETF like JAAA?
no default risk? what AAA CLO tranche is JAAA?
Berkshire has dozens of businesses. It is effectively identical to the sp500 index. In fact BRKA and VOO have same return for the LAST 20 YEARS. but it can fall 50% as it has done many times in past just park it in JAAA at 6.2%, no default risk, then when market down 33% from peak put in 1/3rd of the cash , then if down 50%, put in the rest. It's close enough.
At this time, we are in the very early stages of a credit downturn - I have exposure to CLOs (JAAA, CLOZ) and Mortgage REITS (MORT) etfs, and both have been hit and will continue to underperform (? relative to what ?), but the interest/dividends maybe (?) ok JAAA is the senior tranche and so I am playing this out - there are two threats here. One is recent European regulations, and the other is tariffs related bankruptcies and loan related credit events. CLOZ is a junior tranche. MORT is backed by mortgage loans for REITS and has also been hit hard - it has never even moved the trend up back to pandemic highs. If your risk horizon is greater than 5+ years, 10+ is even better - then you would have gotten back our capital plus more - do not reinvest dividends. I am using in-lieu of long-term care so this "bucket" will be available then
JAAA. Relatively safe corporate bond fund with AAA rated debt. Pays more than HYSA. You might also look into a Tax Free Bond fund particularly if you have a high federal rate or live in a state where yields from your state’s municipal bonds are tax free.
I'm always fully invested but will cash in my more conservative holdings such as JAAA to buy dips.
JPIE, JAAA, PCMM off the top of my head.
i don't think. I just react! I have no clue. I can say when I saw AAA CLOs break down in Feb/early march , I dumped my sizeable CLO positions. JAAA / PAAA. Along with various other things. I've owned a lot of PULS ultrashort bond ETF...it's also broken down in the last week. Slowly declining (It does own some PAAA). I've zeroed it out. Now into < 1 year treasuries and Schwab MMFs. The 5 year chart of the 10Y yield, in early 2022 it also climbed quickly due to Fed Funds rate change I think.
I like the idea of JAAA for my mom's portfolio (she's 88), mixed with her HYSA, existing CDs, treasurys, and other cash equivalents. Thanks!
if horizon is only 2 years, then consider JAAA, paying 6.2% over trailing twelve months, it is run by Janus Henderson Co. and they pick and manage only AAA rated CLOs, collateralized loan obligations, which is just fancy speak for loans to companies, these AAA rated CLOs have a zero default rate, and the worst year for the fund was 2022, the Rate-Apocalypse, it fell 3.2% then recovered within a year. That was very atypical and worst year for US bonds since 1777, so unlikely to repeat. or SGOV paying 4.2% now, but will fall if FED lowers overnight rate. if you have 3-4 years , then consider KRP - Kimbell Royalty Partners, - oil/gas paying >13% dividend and 100% as return of capital, so you pay no tax on it, it just lowers your basis, so when you sell in 3-4 years you will pay the long term capital gain on all your distributions, not the higher ordinary income rates ( in high bracket this is like a 21% tax-effective yield that once can plow back in to get more shares) also it's structured as a C-corp so they send out a 1099-Div like other companies, no K-1 to deal with :)
Compare the outflows from JAAA (Janus Henderson 1.54x AAA CLO vehicle) with the inflows to the Fed through reverse repos. I think you'll find what you're looking for.
First off, you sound like someone who cannot sleep at night because of this. Sell 50%, 60%, 70%, what you need to keep safe to sleep at night. 100% if you need it. Bonds will be fine. Short term for safety. Or AAA-rated CLOs which get you a floating rate that is at about 6% and some change. SGOV is the short term bond fund you should look at. JAAA is one of the CLOs. You can put it into a cash fund as well, if the rate you are getting is something. Take a breath. Be patient. If everything goes back to normal tomorrow, which you and I know it won't you potentially lose some upside. If it crashes, you can avoid all the downside. Now, you have time to learn some stuff. And this is ALL on YOU, but here would be my advice... Go look at value investing, and look globally. You know the US is going to be risky for a while, find stuff that isn't risky. Business may suck for a while in the US, but it won't go away. Some things in the US should be fine, if not great growth engines. Some stuff internationally should do fine as well. Look for things that pay you money every month or every quarter regardless - dividends and other types of income investments. You don't have to make 15% a year to keep up, and I know with the over-valuation in the market today and the tariffs, and the reordering of the global economy that is coming, we aren't likely to see that in the US without some market manipulation ... You can make 8%, and when things settle out, you can make 8%. And you can do it overweight foreign investments. Maybe you don't want so many equities, as they are the riskiest investments. Armchair Income on YouTube is a good place to start for income investing. You will have to spend a lot of time learning, but you will get some ideas for things you never knew existed.
why are you even on reddit then thinking about all this? If you are "ignoring it" for 20+ years...you wouldn't even think about the market at all nor care. You'd look as you got closer to the 20 year mark. I have a small pension from part-time work at the library. It's only like $15,000...but I almost NEVER look at it -- because I chose the 8%/year option rather then a self-directed or whatever. I think that's what it is. I've looked at the balance less then the fingers on my hands over the past # of years. The analogy is if one thinks the "market always goes up" and has a average return of \_\_\_%...then don't bother ever looking! Cause it's "in the bag." As for majority of other liquid assets -- I don't have a 20 year time horizon....much shorter. With that said...don't even need to be in equities for my purposes. That's why I was mostly in bonds / fixed income already / MMF. Part of that was in "safer" investments like AAA CLOs, Which I realized wasn't that safe. I exited those in Feb/early March. JAAA / PAAA. At the same time I exited Pimco multi-asset fund (PHK, PAXS), etc...and some high yield bond ETFs and JBBB CLO. It's not "stressful" per se much. Just study and asset allocation. A game. Would I like to make some extra $$ with the "gambling" percent of my portfolio I've specified - sure. But I've reduced this to now just <1% in equities. If in theory if I missed everything and the market screamed higher the next month or two. or three..I wouldn't lose sleep over that. Don't try to time the absolute top nor bottom. It's just reward-risk analysis. .I do see a good opportunity to buy low - coming soon?
was mostly in bonds/bills already. sold longer held positions (months-years) in early March / late Feb though. Like EPD, GLW (@ 50!). Also higher yield type assets (CLO, HY bond, Pimco HY) - JAAA, PAAA, SPHY. PHK Though got a very very minor burn from entering in small position on Int'l Value stocks though...but dumped remaining just before Friday's bigly down (which means < 2% loss on those positions rather then 7%+ now?) < 1% overall in equity mutual funds. And just keeping that for old time's sake.... now...what to do about my < 5% gold position?
Some gold, bond funds, ultra short corporate (PULS), Swiss Franc, Euro, CLOs (collateralized loan obligations, like JAAA). So far has been sideways for me - but the point is to not get wrecked in this.
Thank you for this information, very helpful! I'll look more into JAAA!
VCSH lost 11% of its value in 2022 though, so there is some capital risk if interest rates rise again or if recession and corporate debt gets downgraded by the ratings agencies JEPI/JEPQ are just bets on +sp500/QQQ, so lots of negative capital risk if markets go down at all Since the Federal Reserve is concerned about inflation, they are unlikely to cut rates much this year so SGOV 4.19% should be fairly stable and there is zero capital risk or need for FDIC insurance since all TBills maybe put 50% into JAAA, has a 6.2% trailing 12 month payout and current 30day sec yield about 5.2%. This fund holds only AAA rated CLO corporate debt, and during 2022 only fell 3.2% and regained it all in next 15 months, so some capital risk but not too bad, and 2022 was the worst year for Bonds since 1777, so unlikely to get another bad year like that for another couple of Centuries. Anything other than Tbills is just degrees of Gambling so it's just about your comfort level.
Depends on how many option plays I have open. But I always have some cash in cash for instant access. Some of it I have in money market funds and some of it I have in JAAA for better performance than money market funds with just slightly more risk. But I also do short puts on margin. Especially the far OTM puts I do before earnings. Because they are usually very far OTM. I do this only when I have enough positions in my portfolio I could sell with a profit to cover for such a put if I get assigned. So it is on margin but without much risk imo
SGOV TFLO JAAA HYSA and collect cash for good entry points. TBills and bonds.