JMST
J.P. Morgan Exchange-Traded Fund Trust
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For my taxable brokerage acconts: VCRM - intermediate managed municipal bond funds JMST - short term municipal bond funds In my retirement accounts: BNDW - general worldwide bond funds DFIP- inflation protected tips PAAA - some higher yield and more risk It's probably overly complicated, but it works alright.
VNYTX are long-duration bonds, SGOV is very short duration. The significance is that long bonds have much more interest rate sensitivity, as you can see in a chart of VNYTX versus time; your principal amount can fluctuate up or down and there's risk associated with that. Whereas SGOV is very steady. There are short-duration muni ETF's out there though, like JMST.
With tax efficiency you could consider an ultra-short muni ETF like JMST. But you have to do the math to see if you'd have more or less after-tax return with that compared to SPAXX or SGOV. Personally if I have cash to park I like SPAXX because it's instantly deployable. Granted I think pulling out of the market to sit on the sidelines is foolish, but that's a separate topic.
> FTFMX appears to be the best yield and after taxes handily beats FZFXX Something to remember is that a money market fund is extremely stable; it's set up to always trade at $1. FTFMX is a long municipal bond fund. That means the value of your principal investment is exposed to interest rate risk. That can work for you or against you. There are municipal money market funds, like FTEXX. There are also ultra-short municipal bond funds (or ETFs) such as JMST. There is far less volatility interest rate risk, but you give up some yield compared to funds with long-maturity bonds.
Don't forget about municipal money market funds, or ultra-short bond ETF's. Munis are exempt from federal tax. If you want to go the short bond route rather than money market, SGOV is a T-bill equivalent ish ETF that'd work fine in a tax-advantaged account. JMST is something similar for muni.
If you're in the US, and if this is going into a taxable account, you could put it into something like JMST. Municipal short-term equivalent of SGOV. Should be safe for principal value, and you don't have to worry about federal tax.
I love ICSH and use it extensively. For tax free, I use JMST.
PYLD, VFLO, and QLTY. ICSH and JMST for ultra short duration bonds.
Money market or short duration bonds. Could be taxable like SGOV or muni like JMST depending on your tax rate.
ICSH or JMST (munis - use if your tax bracket is 35 or 37 percent.)
I'd say a CD ladder is an option, but that limits your liquidity if you don't know exactly when you want to buy. You can park $$ in a money market fund or short-term bond ETF, like SGOV (taxable) or JMST (municipal) depending on which works better for your tax level.
I'd park it in something like SGOV, or maybe JMST if you're at a really high income level. Short duration bonds, hardly anything to worry about with interest rate sensitivity. Just a steady return and very liquid. Alternatively you could do a CD ladder or something but you lose the instant access factor.
> What types of bond portfolios are there besides BND that is recommended? It depends on your goals and your specific situation. Also depends on if you're talking about a taxable account or tax-advantaged. Depending on your income level, you might find that municipal bonds are a better choice than (federally) taxable bonds. If your goal is to have a very steady principal amount, like for a short-term holding, short-term government bonds (SGOV) or municipals (JMST) could be a good choice. Long-duration bonds could be a hedge against falling interest rates. E.g. if you thought there was the possibility of recession *and* that interest rates would be cut, that principal amount would increase in a downturn. TIPS exist to hedge against inflation. All just tools in the investing toolbox; best use depends on your goals.
JMST for tax free and ICSH for taxable. Make sure to calculate your TEY.
>JMST Well. The yield is a lot lower than JPST. You have to be in almost the top tax bracket to make JMST worth it I believe.
Why not JMST for the federal tax exemption?