SGOV

InquiriusRex

Bond yields corrolate to bond demand and supply, that's it. SGOV is comprised entirely of 3 month treasury bonds.

Heyhayheigh

SGOV

greytoc

SGOV is sensitive to ultra short duration interest rates. Also - because it is an ETF - there is a premium/discount to the fund and a spread. While the likelihood that these factors impact SGOV is negligable over time, for 2 days while it's unlikely to lose value - it likelihood is non-zero.

JimothyLeFleur69420

Noob here. How liquid is SGOV if I wanna use it as a HYSA? Can I buy SGOV today and sell it in two days without any losses? I believe the interest accrues daily so if I sold it I’d just make a few cents right? Or do I need to time the sale of SGOV to make sure I don’t lose money?

Enough_Fact1857

SGOV

SecondSt4ge

I agree. The S&P is a better option for me but it seems if you’re more worried about assured profit then maybe go with SGOV. You know it’ll be there 9 months later. But at that point what do you do? Take $20k out? Or keep buying more?

Hungry_Mission_3933

If you need the $20k back in a 9-month timeline, I’d stay in cash-plus. SGOV is the simplest option. If you’re open to a bit more yield without going full risk-on, NEOS - CSHI adds an S&P option overlay on top of short-term Treasuries to squeeze out extra income. If you’re feeling more aggressive, NEOS - HYBI offers higher yield but has some credit risk.

OneOfThese_1

If I absolutely needed it short term I’d stick it in SGOV, or similar. A MMF works too. That’s where most of my uninvested cash is. The smartest thing to do though is wait until that “unrealized gain/loss” field has big red numbers then panic sell. It’ll save you a little bit come tax season.

qqqqqx

Park it in SGOV if you want it to never be down at the end of the 9 months. Earn a couple percentage points, cash out anytime you need to. If you want more risk/reward park it in the s&p 500 or equivalent mutual fund.  Usually has higher returns over time, even if that time is broken up into 9 month periods. But if you're unlucky and need the cash for the business during a downturn (like April this year) it might have actually gone down instead of up.

thenuttyhazlenut

|Ticker|Industry|Allocation| |:-|:-|:-| |ACGL|Specialty Insurance|25.25%| |DR (TSE)|Medical Services|15.00%| |MOH|Health Insurance|15.00%| |WISE (LSE)|Money Transfer|13.75%| |QFIN|Consumer Lending|10.00%| |SGOV|Short-Term Treasuries|9.00%| |CROX|World Class High Quality Footwaer|6.00%| |JD|Ecommerce Retail|3.00%| |THX|Gold Miner|3.00%|

cruisin_urchin87

VTI, VXUS, and a minor stake in SGOV. Feed these three (45, 45, 10) and don’t mess with options until you get bonus money you can afford to lose. Eventually branch out into single stocks when you have a good nest egg

greytoc

FYI - yields are expressed as annualized. So - it's 3.6% per year - not per month. As for why it's no use for me - it's because I can generate a higher yield on cash using investments with similar risk profile. Also - my own personal financial situation allows me to ladder fixed income maturity along the yield curve. And I adjust the credit risk and interest rate risk based on my own personal risk tolerance and future expectations of the interest rate markets. These are more complicated cash management concepts which may not be worth the effort for everyone - but it works for me. Lastly - I am an active trader - so having my cash in a brokerage account allows me to use certain types of leveraged strategies. That said - for a non-trader - the benefit of using a brokerage account is access to a broad range of low risk fixed income products. For example - for an investor that lives in a state with income tax - interest from a HYSA is a state taxable income. But if the cash was invested in ultra-short duration treasuries, government money market funds, or government ETFs, the interest from those funds are state tax exempt. This provides a much higher post-tax yield. A simple example is having a Fidelity brokerage account. Fidelity has a feature where cash which is not invested is automatically swept into a money market fund - the money market fund currently has a yield of 3.62% and the interest is state tax exempt. Many investors may also simply park their cash into government funds like SGOV which currently has a yield of about 3.7% which is also state tax exempt. For high-income earners in high tax brackets - the investor can use state muni funds which may be both Federal and State tax exempt. This may provide a much higher yield than a HYSA, Lastly - interest rates change. And a bank can change the interest provided in an HYSA at any time. For example -you mentioned 3.6% - HYSA's were offering more than 4% in the recent past. If cash was in a brokerage account - an investor isn't locked into a specific bank savings account product. An investor can simply more the cash into a different fixed income investment easily. That doesn't mean that having a HYSA or bank savings account is useless. It has it's benefits. But it's tied to the services and features of the bank or credit union that is offering the account. A HYSA and brokerage account can generate interest on cash. But as financial products - they serve very different requirements. There are also very different regulatory and safety nets between banks and brokerages. That topic may be too complicated if you are inexperienced, but you can find a lot on this subreddit about disucssions about how safe it is to hold assets in a bank vs brokerage. There is a lot of misunderstandings about how it works - but there are legit differences.

ProtectionLonely8805

SGOV is solid but honestly for an emergency fund you want liquidity over yield. The extra 1-2% you might squeeze out isn't worth having your safety net tied up when you actually need it fast

SamWest98

SGOV +15% over 5 years Cost of living +100% over 5 years

Denny_Dust91

Rate my portfolio Hello, I'm not some stock expert like you guys but make decent money and been investing awhile... Rate my holdings, or tell me what you would change! I probably won't listen, but I'll take it into consideration. Total Portfolio: $771K~ (all approx. numbers) VOO: $455K VYM: $109K SGOV: $98K (Slowly shifting to stocks, DCA) NEE: $24K LMT: $23K PYPL: 21K TGT: 21K UPS: 20K ADBE: 20K

PalpitationSmooth992

rate cuts bringing cash yield down to 3.5 im slowly moving my SGOV into JAAA and so are the big bois check after hours 5 mil volume today alone been getting bought every single day in the AH div stocks will continue to pump as smart money positions into high yield assets while growth bleeds the rest of the year calls on div stocks are free money right now

Heyhayheigh

VOO for investing. Buy weekly and auto. As much as you can. Sell only when you have an urgent expense to pay for. SGOV (tbill etf) for emergency fund and short term known large expenses. That’s basically all you need. Tbill and aggressive don’t belong in the same sentence. They are opposites. Money is about when you will spend. Long term: VOO. Short term: SGOV. You’ll will learn along the way. But those are the basics. Auto invest, don’t panic sell. The rest comes with time. Best of luck.

Lazy-Ad2591

Because it’s 12% effective dividend vs a lot less. Also I am from Europe so can’t buy SGOV

Siks10

Without putting in any work here, it sounds like a terrible idea. Why not buy SGOV instead?

JeffFBA

Just a small tip (in case you didn't know), you don't need to keep it as cash. You can buy something like SGOV in the meantime.

LuciferAuAndromedus

SGOV a good buy?

BumbleSlob

9 months is a pretty short time frame. Wouldn’t recommend you put that into stocks. If you wanted slightly more risk and return than a HYSA you could go with SGOV. Or you could put a fraction of the money into the stock market according to your risk appetite. 

BagHoldersOfAmerica

Fighting the urge to abandon SGOV and be 100% stocks

phate81

Nothing wrong with this so long as you have your emergency funds in safe investments. I use my brokerage account as my savings account and keep 6 months of living expenses between money market positions and SGOV. The rest I throw in stocks and ETFs. It certainly beats the shit interest rates my bank was paying.

Zzazangm

Personally, I don't think there's anything to worry about and think the market will be fine for at least another year. If you're afraid, you can just add more bonds/SGOV to your portfolio to have some money in case of a bear market.

Dsrtfsh

Today I am going YOLO on SGOV. Nothing will stop me lol.

d_uni7

I stated that I am EU based and SGOV isn't available for me.

Ok_Policy2010

I'm in USA so our money market funds are all around 4%. SGOV if you can buy it where you are

Successful_Tap5662

I would say just re-DCA. Would be no different if you found yourself with a windfall and unvested at all time highs. If it helps OP sleep at night, so be it. Put it in SGOV for an ease 3ish percent and sped a year re entering. Personally, I’m happy with the old 200DMA OR 10month mov avg as my sl. FinancialWisdom has shown numerous backtests that make me feel comfortable enough limiting my manual management to that.

TheZookeeper31

Trying to time the market is dumb. Using historical evidence, the market is more likely to go up tomorrow rather than down. Consider rebalancing (pulling a portion out to cash, and into something like SGOV), but I wouldn’t completely exit.

edthesmokebeard

Yep. Cash and things like SGOV.

ChickenTendiesLover

SGOV is at 3.85% last I checked

Awkward-Painter-2024

I mean, if OP does 100% SGOV... okay... good luck with that. If that nut is $10mil, it'll work out for you...

InvisibleEar

Forgot about 1k SGOV in my Roth the whole year, I'm never gonna recover from this

TJMBeav

Not. $SGOV is your, specific, best bet

I_like_code

lol. For normal investors the smartest strategies are dollar cost averaging and time in the market. You can even look at historical data and analyze what your gains would have been. It’s also ok to set aside some cash for dips. Obviously if you need the money soon then don’t put it into the market, unless it’s something like SGOV. Otherwise just keep investing and growing your wealth. My anecdotal story is during the April dip I kept buying in all my accounts despite all the doom and gloom. Fast forward to now I’ve made really good returns and honestly I wish I had the money to have invested more. Even though I find the saying “VOO/VTI and chill” annoying, it’s not that bad of a strategy if you’re an average investor and want peace of mind.

ama_gladiator

SGOV is 4.15% good spot for cash while waiting.

Lopsided-Ticket3813

Rotating to defensive sectors maybe go 10% cash equivalents like SGOV where you at least generate interest. 100% cash is just dumb.

DJ_Mimosa

I definitely think this will be a sell the news event, unless Powell comes across as exceptionally dovish, which I doubt he will. The market's addiction to cheap liquidity is getting alarming too. Most other OECD countries are looking at raising rates, which inhibits their ability to invest in US stocks (carry-trade stuff). The Shiller PE, trailing PE, and forward PE of the S&P500 are at highs they've only seen before major crashes. [https://www.multpl.com/s-p-500-pe-ratio](https://www.multpl.com/s-p-500-pe-ratio) [https://www.multpl.com/shiller-pe](https://www.multpl.com/shiller-pe) [https://en.macromicro.me/series/20052/sp500-forward-pe-ratio](https://en.macromicro.me/series/20052/sp500-forward-pe-ratio) At the very least, the safety of SGOV's 4% looks more appealing to me right now than the risk of the market.

achshort

Maybe SGOV

Zealousideal-Ad9663

You’re going to have to figure out when to re-renter the market. I would buy at least SGOV or ICSH and VTV for now instead of just sitting on it.

Grunblau

Debbie Dingle is retiring… If anything, this is an indicator of what boomers are going to start doing en mass and buying SGOV or similar.

sufesmi

Deposit all of your monthly $1,500-$2,000 into your high-yield savings account to quickly build your first safety cushion, and invest 50% of that in ultra-short-term Treasury bond ETFs like SGOV.

Heyhayheigh

SGOV

taplar

A diversified index fund like VT would get you equities. If you are more risk averse, you could throw in some SGOV/BND for a typically less volatile bond holding. Pick whatever ratio you feel you could stick with should the equities decline significantly for a period of time.

zachalicious

Currently doing this. Funds set aside for assignment are in SGOV. Where is your capital parked?

AppearsInvisible

I don't like to extend myself via margin in this way. My alternatives: 1. In the taxable account, I am able to take the value of the CSP and put it in TBIL/SGOV. I feel this is much less risk. My broker let's me do this without charging margin interest--I think they all do? 2. If I don't have the cash for a cash secured put, then I start looking at cheap puts to sell a spread and reduce my buying power requirements. I don't like the high risk of using the margin to double my size, particularly with a short put because of the way the price action drops the the position value when you're planning to get assigned. The other thing you should consider is the obvious "what if the mag 7 drop significantly" when you gave already "doubled down" on picking up shares. Lately I have shifted to a whole different strategy. We'll call it "reinventing the wheel" lol. But seriously rather than just short the put I have been buying a put debit spread, aiming for 60-90 DTE. This way, when there's a pull back, I'm actually profiting. It also keeps a position open for me to view/track so I'm watching my target. Then if I do get a pull back, I can decide if I think it's gonna get worse and pass on the entry, or decide to close my spread early for a profit and buy shares on the dip. Whereas, when I was wheeling with the traditional short put, if I got a price pull back on something I wanted to own, the short put would often actually be costing me money to close early. If I'm trying to get shares at a discount and I want to get paid to wait, but I want the flexibility to close early and buy shares, then the debit put spread seems the better fit. So there you have some extra rambling that you didn't ask for, free of charge!

ShootFishBarrel

That's a great, mostly safe way to squeeze extra money out of your account. The best part is that you're using the margin without actually paying any interest. Just be careful, don't be too aggressive. Be ready to buy back the put before expiration, and move it forward to a later date. As long as you didn't use too much margin, you can push contracts out indefinitely. There will always be *some* premium (even if shares crash and it's very little). Even in a really bad market you should be able to pull through without actually paying any interest on borrowed shares. Be aware that sometimes if the put you sold becomes difficult to trade, the owner can assign you the shares *at any time*! That means you must be checking the account every day, especially near the end of close, watching out for assignments. They are rare (until they happen to you!) I use a similar technique: I am DCA'ing into the market slowly, I hold SGOV (earning ~4% for now), and if/when any contracts go against me I can choose to buy the shares or push the contracts out to a later date.

Heyhayheigh

You have it backwards. Your riskier plays should be in your Roth. Your brokerage can be all SGOV and QQQM or VT if you prefer.

hgreenblatt

If you want to Buy and Hold then CC work fine. But most of you 100k will be tied up in stocks. If they go up you are a genius , if not ... Csp are the worst. You have to put up the entire price of the stock, some brokers let you earn interest, some do not. My answer is always the same, get a Margin Account (Schwab , Tasty, IB platform not for me) , you are pissing away your leverage in a Cash Account. If you have the money (25k but 60k better) to trade options (90% of those responding only have 10k or less). You must get approved for Selling Options, this can be hard at many brokers. Tasty is the only one that gives it to everyone. If you Sell a Put without being approved, then it is a CSP, and none of this applies. You can Sell Puts , Calls or Both on Amzn, Appl,Googl, Bidu, Nvda, for 2k-4k Buying Power. If you get Assigned take the loss close out the stock and move on, or ROLL Forward in Time for a CREDIT. Also you can BUY SGOV , get 70% Buying Power on that and interest every month. If you can afford to tie up part of that SGOV cash for 3 months at a time you can get over 99% Face with Treasuries. Selling Treasuries before maturity could cost you a "haircut" , Sgov does not suffer from that. Key:: Always keep 100% of the BP as backup for a Down Move, so if the BP is 10k, keep another 10k as backup. Follow Tasty mechanics , Sell at 45dte, close or roll by 21dte, have a profit target in 50% area. Do not Sell 40 Delta Puts... I rarely do over 20delta, 30delta is ok but you will get tested often. How can this be , everybody on Reddit is wheeling! Try these Tasty vids to see what most Reddit users do not know or worse understand. [https://ontt.tv/3jAf4Ba](https://ontt.tv/3jAf4Ba) Buying Power Factors Oct 28, 2020 [https://www.tastylive.com/shows/tasty-extras/episodes/a-refresher-on-bpr-06-29-2020](https://www.tastylive.com/shows/tasty-extras/episodes/a-refresher-on-bpr-06-29-2020) [https://ontt.tv/2CLbOjn](https://ontt.tv/2CLbOjn) What Affects Buying Power? Nov 14, 2019 [https://ontt.tv/JeGVN](https://ontt.tv/JeGVN) Short Puts vs Covered Calls vs Poor Mans Covered Call Jul 9,2024

ronstory

No problem and happy to help others avoid my experiment's "surprise". Plus with the yield curve negative, it's back to SGOV.

Late_Description3001

SGOV is not halal.

qi2016

SGOV to collect monthly dividends.

ServerTechie

You can do better than a flexible account at 3.23%, and besides as the interest rates are continuing to drop. If you have a brokerage account, consider FDLXX or SGOV. They offer better rates than most HYSA and the dividends are tax exempt on a state level. If you want ever higher dividends, ultrashort bond funds like JPST or ICSH are very stable, but they do fluctuate a little and they have no tax exemption. Depending on your risk tolerance you could consider some equity based ETFs, but remember that stocks are not a safe replacement for savings, and ideally you should have 6 months savings with high interest credit paid off before considering investing in a brokerage account.

Agreeable-Progress85

Fidelity let's you open multiple cash management accounts. So I have one that's for "2026 vacation fund" and another that's for general spending, keeping them separate from the long term investment account. Both are earning interest at 3.6%, but could also buy SGOV or whatever in the CMAs if I wanted to make things slightly more complicated to manage.

Actual_Stranger_1766

interesting, thanks so much for this. Will probably go SGOV until VBIL becomes a little more established

hgreenblatt

You are confused. If you are not approved for Selling Options (you do not say). then even though the account is margin selling a Naked Put must be a CSP. If you are approved for Selling Options, then I am pretty sure it will use buying power (about 8k-10k for a 25 delta), but I have heard Fidelity has a way for you to force it to be a Csp. Anyhow you a throwing away your leverage , and interest. Selling using Buying Power is what you should be doing. The t-bills and Sgov pay interest and can be turned into cash pretty much as soon as sold (Schwab, IB, Tasty). t-bills get 98% face BP, Sgov 70% Bp (sometime 75%). There is no risk. Here was my standard reply. My answer is always the same, get a Margin Account (Schwab , Tasty, IB platform not for me) , you are pissing away your leverage in a Cash Account. If you have the money (25k but 60k better) to trade options (90% of those responding only have 10k or less). You must get approved for Selling Options, this can be hard at many brokers. Tasty is the only one that gives it to everyone. If you Sell a Put without being approved, then it is a CSP, and none of this applies. You can Sell Puts , Calls or Both on Amzn, Appl,Googl, Bidu, Nvda, for 2k-4k Buying Power. If you get Assigned take the loss close out the stock and move on, or ROLL Forward in Time for a CREDIT. Also you can BUY SGOV , get 70% Buying Power on that and interest every month. If you can afford to tie up part of that SGOV cash for 3 months at a time you can get over 98% Face with Treasuries. Selling Treasuries before maturity could cost you a "haircut" , Sgov does not suffer from that. Key:: Always keep 100% of the BP as backup for a Down Move, so if the BP is 10k, keep another 10k as backup. Follow Tasty mechanics , Sell at 45dte, close or roll by 21dte, have a profit target in 50% area. Do not Sell 40 Delta Puts... I rarely do over 20delta, 30delta is ok but you will get tested often. How can this be , everybody on Reddit is wheeling! Try these Tasty vids to see what most Reddit users do not know or worse understand. [https://ontt.tv/3jAf4Ba](https://ontt.tv/3jAf4Ba) Buying Power Factors Oct 28, 2020 [https://www.tastylive.com/shows/tasty-extras/episodes/a-refresher-on-bpr-06-29-2020](https://www.tastylive.com/shows/tasty-extras/episodes/a-refresher-on-bpr-06-29-2020) [https://ontt.tv/2CLbOjn](https://ontt.tv/2CLbOjn) What Affects Buying Power? Nov 14, 2019 [https://ontt.tv/JeGVN](https://ontt.tv/JeGVN) Short Puts vs Covered Calls vs Poor Mans Covered Call Jul 9,2024

ronstory

I tried an experiment for the last two months of SGOV vs VBIL. I decide to try VBIL and moved 1/3 of my SGOV holding to VBIL. I have now waited for two complete months of dividends and below is dividend payout summary from my account this month. The first column is dist-yield and the second column is SEC-yield. SGOV 12/1/25 (payout 12/4) 4.15% 3.85% VBIL 12/1/25 (payout 12/3) 2.81% 3.89% Since the dist-yield is what is deposited to my account each month, between the two, I'd prefer SGOV. The surprise is the that SEC-yield is actually higher on VBIL... YMMV.

croissant_and_cafe

21% but that is accounting for the 25% I have had sitting in SGOV type things so about 30% for the actual stocks. I don’t do much swing / day trading. 80% of my portfolio is long term hold. I play with about 20% doing swing trading at dips with leveraged products or momentum stocks.

Umami_Tsunamii

I’d honestly just do a mix of index funds rather than the individual picks. SGOV is a good safe haven for cash.

dankappledrank

https://marketchameleon.com/Overview/SGOV/Dividends/

JimothyLeFleur69420

i need to invest $30k for 6 months, after which i'll need the full $30k back in cash. would buying $30K of SGOV be good? it seems like it would be slightly better returns plus better tax benefits from a HYSA, is that correct?

evertrue13

Might as well keep it in the brokerage settlement fund for a slightly higher return than savings accounts (I have no state tax so it’s easier than SGOV)

wyterk

Selling puts is a bullish strategy. If market tanks you get hit just like buy and hold. What you are looking for is a strategy that makes more than SGOV while minimizing the risks. Those low drawdown strategies that perform better than SGOV.

existing_for_fun

I mean, I kept the cash in SGOV and just sold puts on margin. If I was going to be assigned I can just sell the SGOV shares for the cash. But yeah. Nothing wrong with it in SGOV

noncompact_leaf

Thank you for offering this! I just computed a few ideas for both buying puts and selling calls, and I'm not really finding a contract that would be better than just buying SPY after all... But if you're willing to help, would you mind giving me your take on what you would do? Another commenter convinced me to just give my full account details, so I wrote it here and will probably delete later 🙂. >Twenty-something, single, working 40-hours per week, full-time student, don't have time for anything else, including thinking about finances. Salary about 40k/yr but crazy frugal so I realized this year that I somehow have saved $300k over the past 20 years without realizing it. (Just reached that today.) >I realized a few months ago that I should really start doing something smart because I could be able to help out my family and friends in the future. So I put about $50k into Mag 7 stocks and about $100k into some total US market index (DFAC). >Today I skipped my afternoon work only because I thought I need to figure out what to do with the rest of this $150k because I don't want to realize in ten years that I wasted it. (Like I kind of realized this year.) >But after reading these comments and looking at options prices, I guess I'm actually not missing out on some obvious place I'm supposed to be putting the money to make it grow, like I thought I was. For instance, the 1-year covered call contracts available now for SPY are equivalent to buying and holding if the market does 10%. And like the other commenters mentioned, there's no big advantage to selling puts vs just buying SPY. >So I'm thinking I should just move the SGOV to SPY and leave behind a little to buy more in case the market drops after buying. (I just don't want to be missing something that would be smart to do.)

noncompact_leaf

Hi, well I didn't think anyone would have time to help if I gave the whole story, but the people here are surprisingly nice, and I can always delete this later, so here it goes: Twenty-something, single, working 40-hours per week, full-time student, don't have time for anything else, including thinking about finances. Salary about 40k/yr but crazy frugal so I realized this year that I somehow have saved $300k over the past 20 years without realizing it. (Just reached that today.) I realized a few months ago that I should really start doing something smart because I could be able to help out my family and friends in the future. So I put about $50k into Mag 7 stocks and about $100k into some total US market index (DFAC). Today I skipped my afternoon work only because I thought I need to figure out what to do with the rest of this $150k because I don't want to realize in ten years that I wasted it. (Like I kind of realized this year.) But after reading these comments and looking at options prices, I guess I'm actually not missing out on some obvious place I'm supposed to be putting the money to make it grow, like I thought I was. For instance, the 1-year covered call contracts available now for SPY are equivalent to buying and holding if the market does 10%. And like the other commenters mentioned, there's no big advantage to selling puts vs just buying SPY. So I'm thinking I should just move the SGOV to SPY and leave behind a little to buy more in case the market drops after buying. Does that sound right? I might be missing something really obvious!

Dsrtfsh

SGOV makes sense in a portfolio structure. You’re not telling us the whole story. You can use margin against SGOV to try your CSP strategy. Going from SGOV to CSP is a huge leap.

noncompact_leaf

Good points, thanks. Right now I have the cash sitting in SGOV, which is kind of stupid. So probably I'll just sell the puts since it's not as big of a deal.

noncompact_leaf

I need something where the exit plan is simply buying the underlying shares. A low-maintenance plan is also a premium. So I'm thinking of selling monthly or weekly puts and just let them expire. The main goal is just that this money should be working a little more than just sitting in SGOV.

noncompact_leaf

Thank you! It's not easy to find a clear explanation on this. (All buying power can be from SGOV -- got it.)

iWesTCoastiN

And for some reason it's not applicable for state taxes? Interesting 🤔 I noticed you said stock so it's not like a HYSA or MMA in the sense that there's no risk involved? For the SGOV there's risk?

tarrat_3323

yeah i was looking at FLOT, PAAA and JPST with some SGOV.

me_xman

Sitting in SGOV BIL.

crazybutthole

JAAA is pretty safe at near 6% but its not zero risk. if you went with a bucket of 40% JAAA + 60% SGOV or similar - you would average out near 5% and reduce the already minimal risk. (or throw 10% in sp500 and boost your risk and hopefully increase the return as well)

tmssmt

Robinhood (for ease and accessibility) and dump into something like SPY. If you want to be extra conservative and risk nothing, SGOV

iWesTCoastiN

I googled SGOV and was completely confused. How does one go about investing in this?

bbmak0

So, you are only getting 3.85% yield from SGOV, and the broker charging you 5.25% from margin. How do you make a profit?

Fhyzikz

Why not just park it in SGOV when you're not trading? It won't go up much but it's something at least

Heyhayheigh

So I teach my nieces who are not working yet to invest 10% of their deposits to VOO. The rest stays cash SPAXX (Fidelity). If they want to invest more they can. They know when they start working they will auto buy VOO a weekly basis. They know they will learn as they go, Rome wasn’t built in a day. But that beginning is the foundation. They even know about SGOV, but the default money market is fine. It is teaching them the habits that’s the most important. They know to pay their future selves first.

Ozqi

If you’re not using your 1k interest free margin to buy SGOV so that it offsets your entire cost of RH Gold and you essentially get all the other benefits for free, then what are you doing?

After-Question3165

FLOT holds floating rate corporate notes. SGOV holds ultra short duration treasuries. Completely different

LanceX2

Flot is not Tax exempt like 100% of SGOV is. 

baseballer213

Think of the bond market like a seesaw: when people dump treasuries, the immense supply forces prices down, which automatically pushes yields up. If the EU dumps, long-term bond funds (like TLT) would get absolutely hammered because they are stuck holding older, lower-paying paper that nobody wants anymore. SGOV is different because it has zero commitment issues. It holds bills that mature in 0-3 months, so it barely flinches at price drops because the duration is so short. Instead of your principal tanking, SGOV just rolls over into those new, higher-yielding bills almost immediately. You wouldn’t see a price crash; you’d just see your monthly payout go up while long-term holders weep.

Titanium-Marshmallow

It will hit hit the fan across all assets except perhaps gold. And maybe crypto? It truly is a nuclear option if EU dumps their treasuries. Prices down, yield up, who will blink? Who will buy? A shitshow. When you invest in a bond fund (SGOV, TLT etc) there is no concept of holding to maturity. If the market price of bonds drops, then the NAV of the fund drops and you may not ever get your principal back.

Heyhayheigh

If you’re the sole heir, take the assets into your name and be done with it. There is no real purpose to a trust with only one heir. You could do whatever you wanted and there is no other heir to sue you… check with your lawyer of course, but that should be how it works. Taxes are needlessly expensive, to pay (if you’re silly enough to be taking them as an entity) or file. Your parents went to a lawyer asking if they needed a trust and that lawyer got a sale. Why take loans? Just cash out what you can from Roth in different years, put in SGOV while you do the construction. Don’t be in such a hurry. Sounds like you’re in a good spot.

igycb

SGOV

TheSleepyTruth

Well you said you wanted to "reliably" make money by 1 month, suggesting you will need the money 1 month from now. Best way to guarantee that is money market / HYSA / SGOV etc. If you buy stocks... you might have more money in a month, but you might have less money. In fact there is a decent chance it will be less money, certainly not a "reliable" way to make money in 1 month.

Melodic-Scheme8794

SGOV slashed my dividend by 10% today. Fuck JPow.

Any-Cup8629

Lmao, SGOV

gotnothingman

SGOV, guaranteed payout in one month.

Heyhayheigh

SGOV

jerseyben

Almost in the exact same situation. SGOV is great for a safe place to park your money. Here's the rub... You get excited by the state tax exemption, which is huge in NJ. However, it's still ordinary dividends. This isn't something that gets brought up enough. If you live in NY or NJ, chances are you are high enough income that you still get nailed on these ordinary dividends. That's why I'm currently looking for something fairly conservative that pays Qualified Dividends. SCHD or ADX is an easy one but also exploring alternatives.

rkoloeg

I just use a spreadsheet and the money is all in one fund (VMFXX in my case, but SGOV works too). Currently I have about a dozen categories in there. Alternatively you can make separate brokerage accounts for separate purposes if you want the the interest from particular funds to roll back into them (although you could track that in the spreadsheet too). I did this with my future house down payment, it's just in a separate brokerage account labeled "House".

GaylrdFocker

I use BOXX as my Emergency Fund, SGOV as my Escrow and future IRA contribution fund, and SPRXX as my sinking fund. There are plenty of other funds you can do this with, it's just a matter of what you are comfortable with.

DennyDalton

If you have $5k, then an initial margin rate of 50% means $10k of buying power. Doing so with SGOV will net you $10 per month. If you put the $5k in a treasury bill or your broker's MM fund and you earn 3.85%, you'll net $16.67 per month. So what have you accomplished by buying SGOV on margin and earning a lower return? AFAIK, a broker (not portfolio margin) will not allow you to sell puts against a fully margined position, leveraging the leverage Let's ignore the SGOV and focus on the puts. The typical margin requirement for a naked put is about 20%. If you fully leverage, you're adding much more notional value than you have buying power. For example, with $5k, if you sold two puts with a notional value of $50 (strike price less premium) and you were assigned, you'd have to buy $10k of stock. Your buying power could handle that. Assigned on more than two of the five @ $50 would mean a margin call. Now, a quick lesson on margin. As noted above, Reg T margin for long equity is 50% (brokers can require more). The Reg T maintenance margin (MM) for long equity is 25%. Brokers can require more and it is typically 30% (for example, Schwab). Despite what many think, this does not mean that stock price can drop 50% before you get a margin call. It means that there must be a minimum amount of equity value of 30% or more of the total value of the margin account. For buying $10k with $5k of collateral, that means that if the value of your position dropped below $7,143 (a loss of 28.57 of its value), you would get a MARGIN CALL!!! (7,143 - 5,000)/7143 AFAIC, if you want to leverage a bit, use vertical spreads so that the potential margin requirement doesn't blow you out of the water.

Away-Tour-203

Consider your risk tolerance and investment goals. If you are looking for stable income and don't want to take on the risk of price fluctuations, SGOV might be a better choice for you. In contrast, VNYTX may offer a higher total return, especially considering taxes.

Heyhayheigh

You should have asked chat gpt. It would have told you to not use long duration for an apples to apples comparison. Long duration munis introduce price risk. There is a short duration find. But honestly it’s just easier to use SGOV. VYFXX is the other fund according to jippity. I didn’t check for hallucinations, fair warning.

therealjerseytom

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.

smb3d

I'm interested in this as well. I also have roughly $200,000 currently in SGOV. The yield isn't as high as it used to be as well.