SGOV

Yottahz

If you had a \*sure thing\* investment toward the end of the year (December) that you needed capital for, would you still risk money now or just park and wait? The \*sure thing\* will be a 20% to 40% return but you will need to have money available to invest in it some time in November. Staying in SGOV seems like the best plan until then but feels like I could do a bit more.

Yottahz

I am in SGOV which pretty much is all cash. I don't know about the genius part because it is earning 3.5% while inflation is 4% (if you don't back out everything that the government does).

kendogg

Yup. I've had a couple moon shots (Intel most notably, up ~500% or more currently), and Hood I just sold for a ~45% gain. I'm slowly selling stuff thts up 20% or more and moving that money to VOO. I do have a decent SGOV/GOVT balance though as well.

Familiar-Meat-6572

The one that stands out to me most was when I first got Public about a month or 2 ago, I noticed that it was either VBIL or SGOV after market closed it claimed the stock jumped .10 to .15 cents a share which would be astronomical. It increased my total unrealized P/L to match, but checking another brokerage it was still at the same price as close. The next day, it dropped back down to the previous day price. Also, just clicking right now on the S&P 500 Index there is no "daily recap" regarding what the price movement was about and that's what I was mentioning that about. SPY as of right now also doesn't have it either, but I see it on various other stocks/ETFs.

LaMeraVergaSinPatas

I shit you not on Monday I had it lined up to sell everything and put it into SGOV and take the summer off…my kid knocked over everything at breakfast and I forgot to pull the trigger. Just fuck

rithsleeper

May have “worked well” but just like people who avoid credit cards. You leave a lot on the table as you can’t create efficiency. Example is selling puts vs buying shares. So much more capital efficient, not for leverage but realistic positioning. Stuff like, I want to own 100 shares of a dividend stock like T. Rolling ATM puts is so much more capital efficient. And you can still hold shares of SGOV at the same time collecting all the dividends.

I_HopeThat_WasFart

SGOV

rueggy

I don’t know the point of them either. Diversification yeah but bonds seem to underperform in every market. If I’m skittish about the market I have some funds parked in SGOV or the brokers money market account.

spilledonwhite

That's dumb if I want 4% I can do SGOV... 40% of SPY is tech and they are all down 10-15% for the month. Big oil stocks down too. Hard to believe SPY is only down 2%.

Yottahz

It seemed like I got a slightly better deal on the calls when accounting for the premiums of puts and calls and the tiny dividend. Plus E-trade won't let me sweep cash that is being used to secure puts into SGOV so it might as well be deployed. (Roth).

Cloud2987

I buy VOO 50% (core engine) QQQM 20% (growth tilt) 10% SCHD (income + stability), 10% VXUS (world diversity), 5% IBIT (Bitcoin, speculative, and 5% SGOV (dry powder to use when markets crash). This portfolio touches a little bit of everything and still focuses on growth.

bam2350

Explain, please. What if that is 400 trades that are all purchases? Using my taxable brokerage account as an example, in the last roughly 11 years I have recorded 533 "trades", however less than 10% of them were sales. I hold 50 different tickers. 75% of the value is in only 10 tickers including VOO, VTI, MOAT, SGOV, CAT, and NVDA. My last two sales were QQQM due to the SpaceX concern and some SGOV to free up cash to invest in the Iran related dip in March. Am I investing or am I trading?

Yottahz

Was the MU blowout sort of known? I feel like it was a given the stock would go up 10% or more. I don't understand why I didn't just dump $100k into 100 shares. I have $105k sitting in SGOV earning 3.5% a year.

Dr_Dick_Dastardly

I have $1,000 in interest-free margin from Robinhood Gold that I invested in SGOV to help pay off the yearly fee. Otherwise, I never touch it. That shit will wreck your life.

SnS2500

\> With the S&P500 now being overrepresented Overrepresented how? By what your brain thinks it should be? No one can present you good ideas if you create your own reality. Either invest in real world stocks you believe in or buy SGOV.

SuperNewk

Pretty fair, 1.3 million in just stocks or SGOV is solid. 1.3 million including house + retirement and very little stocks is tricky

zenyogi2025

You can simply rebalnce your equities to get 30% to 50% into boring Value VTV and another 20% to 30% in cash, SGOV + JAAA at least 5%, reducing tech exposure to less than 20% and increase ex-US to 50%.. Even during the lost decade Value performed better, while sp500 and nasdaq were flat for almost 13 years...

Level_Counter3062

3.1%?? That's worse than SGOV

ThermalChaser

SGOV gang checking in. Why all the long faces?

dogefool88

95% in SGOV and 5% in COST calls.

fridaynighttrader

if your order was filled then this is a pure box spread arbitrage on american style indices expiration. as long as you can handle assignment if one of the short options is exercised early then you shouldn’t encounter any other challenges. you can put all of your total credit into SGOV to earn additional yield while you wait for expiration. Cool stuff.

InevitableAd2436

You don’t know how to trade That’s why your mind has been blown that I made \~250% on a single options trade. And it’s been realized 😎 You truly are a retard lmao. I hope you stick to SGOV and VOO for your own sake

Yottahz

I am buying 0dte on SGOV.

OxRedOx

I would recommend either putting it all into VTI, splitting it between VTI and DIA and QQQ, or just putting it all into SGOV and slowly moving it over (this also allows you to buy in a crash since SGOV is mostly fixed). No point worrying about what you would have had, markets go up long term even if individual stocks don't always do.

imunfair

SGOV is probably the closest you'll get - it won't totally match your losses but you'll only burn 1% per year instead of 4%. Someone else mentioned ibonds but those have a pretty low yearly dollar limit, they're still taxable, and the paper ones are a pain in the ass to cash in via mail (only 2/3 the yearly ibond max purchase is via electronic purchase, the other 1/3 is paper).

Sudz35

It's fine. Keep it in a MM or ETF like JPST or SGOV for safety. When the market crashes you'll be able to buy back in. If you want to get back into the market just start DCAing.

Asian_Dumpring

Idle cash earns a calculated return. If in SGOV or similar tax-free treasuries, it has special tax treatment. Just understand that your waiting to determine whether your strategy will do well, has overall portfolio returns implications

DoopDaLoot

Literally you could drop 80% back in to VTI and 20% to SGOV

bam2350

This or SGOV

rjbullock

Dude, you’re fine. For one thing, don’t fall for FOMO. the question is not whether you missed out on some gains, the question is are the current market valuations rational? And in many cases, no they are not. There are so many financial shenanigans going on right now to spike earnings: deferring expenses for longer, share buybacks, circular revenue deals, stock based compensation, etc. Most of the market gains have come in tech and that whole sector is batshit crazy right now. So be patient and look for good deals. If they’re out there, buy them or look at safe, fixed income options for now where you can make nice returns nearly risk-free (SGOV should yield over 4% for years). If they’re are no good values, then there’s nothing to complain about unless you like overpaying for things.

jalehmichelle

I'm never fully invested! I always have a 6-month cash buffer and I have a little bit extra in SGOV right now (normally I am all equities but the current market has me playing it a little safer than usual). As long as I have stable income coming in and numbers look good I'm fine using up some of my emergency fund if I know it will be back in 1-2 weeks. I am not good at cutting back lol so I focus on upping my income even if that means I have a crazy stressful week sometimes

No_Solution_7940

Time in the market>timing the market. You’re so young, you’ll get through any major drops. My advice? Get back in now, and keep adding when you can. Keep some in SGOV if you want to prepare for any major drops, but never panic when stocks go on sale. Voo should be at least half, then the other half stuff like SPMO or qqq

ResponsibilityHour54

SGOV for safety. PSQ if you want to capitalize from a crash. SQQQ if you have a high conviction the market is going to crash.

Zestyclose_Virus_473

I’m new to investing even though I’m 55 years old, but this question shocked me and I hope it’s ragebait on their behalf. If not hope it all works out 👍 Now for me, I’m currently dealing with cash savings of about 300,000 that was in the bank (stupid I know) I have thus far put most of that into SGOV and bought little entry point on VOO and small amount of Google as my high conviction stock for the long run. I’m having the hardest time understanding how to enter this market. I thought I could wait for dips. Dips never happen lol should’ve learned what I read about time in the market now I’ve seen frozen any suggestions as we sit on the high again? I was going to invest in VOO about to 55% 20% QQQM 10% VXUS (international) and 10% SCHD and 5% Google. For Roth a 70/30 VOO/QQQM Outside of the above, I have 401(k) that slowly reached about 330 K. Just for overall understanding as well as as 80k still in my savings as immediate use emergency which I know it could be smaller. Any help would be appreciated.

ChiChiWana

son didn’t read that it’s going into SGOV

Yottahz

That is it! I am going to buy 0DTE on SGOV.

Moldy_Birdie

1. Have some cash lying around/ spare money in $SGOV that can be accessed any time. 2. See one! You can always get some $VXX to use as a volatility hedge but I would only do that if you can get it near it’s lows. There’s also inverse sector ETFs if you think one sector would be more affected by a crash than the broad market but remember that the market can remain irrational longer than you can remain solvent.

Singularity-42

Yep, this sounds like "this was the top" stories I keep hearing about the dotcom bubble - "investor" thinks for years it's a bubble, but market keeps melting up, finally he gives up and goes all in at the very tippity top only to lose 80%. I'm personally derisking bit by bit. Had over 40% gains in the past 12 months in diversified, but AI heavy portfolio, I realize this historically won't last so I'm shifting, but slowly. Some SGOV cash pile, some broad ETFs. If I had one advice is not to do big lump sum moves, but do things gradually maybe? But as far as the direction - the "bubble" might pop soon or it might go on for years. Nobody knows and if they claim they do they are lying.

Mission-Push-1475

SGOV & cash

_rockthemike

SGOV

BlackberriesAndSex

You put it in SGOV

HelloTheirCruleWorld

Treasuries. I’m 20% cash in SGOV

Seastep

I treat SGOV like a mini savings account inside whatever investment account I have, ready to sell shares of it into whatever might make sense at the time. Remember though the truest tax advantage of SGOV is in an IRA because you aren't taxed on the gains.

Ahamadrayasbaboon

Defensive stocks still fall, but may not fall as hard. SCHD is a broad fund that has a greater concentration of defensive sectors than most. XLU, XLV, XLP, XLE. Some of those are still above their 1yr SMAs….you can let the exuberance catch first, as people rotate out of them when they get cocky.  Gold, I would not pick now. Corporate bonds suck. Long-term gov’t bonds suck.  SGOV is the ultimate hedge, as it does not correlate, but it may not beat inflation.  CTA does managed futures in commodities.   Time in the market beats timing the market. I’m holding onto my Qs. 

Ahamadrayasbaboon

Buy VT and SGOV, delete apps (reddit and brokerage), go on vacation, get laid, go skydiving, ride motorcycles, hit gym, reinstall app in a month, start fucking around in another month if you still want to. 

OxRedOx

Long term index funds, don’t worry about timing. If you can’t stop worrying then invest it in chunks but in the same things ( VTI, VT, DIA, QQQ, VTWO). If you might need some of it in the next year or two then put that amount in SGOV or BOXX because those are fixed gains with no volatility. Don’t worry about a crash imo, it could fall 10% and it would likely be a wash in two years, especially when you consider that the crash could take another year.

BaconJacobs

What about a plan of half in SGOV and then after each divvie distribution sell some and DCA? I know people split hairs on annual yield and operating cost, but SGOV isnt taxed in my state so it's a big advantage.

Local_Math_5512

Not Financial Advice just what I would likely do. 3.85% yield in SGOV on $400,000 is $15,400 a year. So being patient and sitting in short term treasuries won't be too bad. It's statistically better to lump sum into the S&P500, but the market is looking kind of toppy and there is a lot of uncertainty right now. With $400K, you probably don't need the money right away. DCA average $200K into the market over the course of the year. That's $793 each trading day. Sell Box spreads (european style options) on SPX worth $40k for a low interest loan. Start a company. Lend you're $40K to the company at a reasonable interest rate. You're company now has to pay you back the 40k. When the company pays you back, the $40k wont be taxed but the interest will. Use the $40K as a down payment on a rental property. Find a renter. Collect income. Amortize the value of the property over a 3-5 year period. If done correctly, the amortization will cancel out the rental income. This means the company will owe no taxes from the rental income. Use the rental income to pay the mortgage first and to pay back the loan the company owes you second. Any money that goes to you should be added to your SGOV (or similar money market fund) as you continue to DCA into the market. You are now building equity in both real estate and the market while simultaneously generating cashflow from your rental property.

Small_Rip351

I agree, pay off any burdensome high interest debt, then put a portion now into an S&P fund. The put the rest in a money fund or SGOV until you figure out what to do with it all over time.

aspenextreme03

SGOV is my go to as no state tax or very minimal

InvestingNerd2020

The OP said long-term, not swing trading. A lump sum Monday will not matter in 10+ years. I do like the SGOV part for emergency funds and for big market dip buying opportunities.

Toxic_Outlaw6572

VOO, SGOV, T-Bill ladder, Silver, hell idk.

LanceX2

50K in SGOV then DCA or just Lump into VTI or VOO man.

InvestingNerd2020

Put most of it, $300k, into an S&P 500 ETF. SPYM is a good choice with the lowest expense ratio of 0.02%. Keep $100k in emergency savings. A) A Treasury ETF. They are exempt from state income taxes on your interest earned. Either SGOV or VBIL. B) A high yield savings account with 3% or higher interest. Wealthfront, SoFi, Capital One, American Express, Barclay, or Marcus. More liquid than a Treasury ETF, but not state tax income protection. A better choice if you live in the 9 states without state income taxes.

beerandgardening

The market is at its peak and the underlying economy is really shaky. If I had $400k, I would start by putting all of it into SGOV and/or SPAXX (if you trade through fidelity). Both give \~3.5% returns but SPAXX is immediate cash on hand while SGOV is an ETF that may have significant tax advantages. From there I’d wait and see how the market behaves over the next 2-3 quarters and invest $10-20k once a week across what I felt comfortable with. Investing is a marathon and not a 100m dash. Be patient.

superdreamcast

If you are young, it is better to invest as soon as possible. You can always save 10 to 15 percent cash ($40,000 to $60,000) in SGOV to buy the dip on market corrections. Invest in a broad S&P500 index like VOO or VTI. You can also invest in some portions in growth and/or value ETF because they can outperform S&P500 in some years. I like SPMO for momentum factor and VTV for value factor. How aggressive you want to invest depends upon your goals and time horizon. If you throw it all into the VOO, you will make around 10 percent a year just matching the market ($40,000+). You can lump sum or DCA. Whatever gets you to start investing, do it!

Aggressive-Donkey-10

sp500 CAPE PE = 43, near all time high in human history don't invest all at once, as sp500 unlikely to go up 20-30% this next 12 months, more likely to drop a lot. maybe 50k now and 50k every 6 months for next 4 years, keep the cash in SGOV at 3.55%

Perfect_Painter_7863

If we pump Monday im exiting all positions at break even and placing it in SGOV fuck this market

Cloud2987

Depends on what happens. I waited and then Covid hit. Deployed $300k during the dip and made $2m since 2020. The Ukraine war had another dip, made $400k. I was waiting to see if the Iran would cause another dip, but it hasn’t. I am holding $500k in SGOV until the next major dip.

blackgenz2002kid

I invest in 50% QLD/TQQQ, 40% VT, 10% SGOV for spare cash, and call it a day tbh

ThinkingOfTheOldDays

Friendly reminder to park unused cash in SGOV overnight for free money

TDot-26

I've got $1,000 worth of credit card cashback from Robinhood Gold card rewards and dividends from my emergency fund in $SGOV, which is currently in VTI. Sold the VTI, gonna play with SPCX. Either I lose a few hundred bucks or I make a few hundred bucks that I never had any intention of touching anyway. Gonna buy at market open for as cheap as I can, if it goes up 10% I'm selling and going back to VTI with my extra $100. Not staying in this until Monday. I do NOT want to be holding a meme stock over 2 non trading days while everyone plots over the weekend.

freekerosene

Damn, 400K would be SGOV money for me. Maybe that’s why I’m still flipping cushions for change though. At least you still got a 50K ticket to 1M on SPCX tomorrow

ThermalChaser

SGOV gang checking in after a good night's sleep

GemmyBoy999

I put them in SGOV until I have a little bit of extra breathing space, and wait until the market seems safe, and go back in.

No_Paleontologist506

SGOV

_galaga_

I opened a position over a year ago and it’s lost to SGOV over that timeframe so I’m trying to figure out what to do with it. Am I being impatient? Should I bail until they make one or two moves that make sense and give some sense of direction? No idea right now.

lichsadvocate

$SGOV

SnS2500

FXNAX has underperformed SGOV ytd and the past 3 and 5 years. In fact FXNAX has returned less than 1% total for the past five years. I can't see any reason to own a fund that has risk and but no reward.

Jericho3434

SGOV

Empyrion132

$3k is not much to work with. A good rule of thumb is not to risk more than 1-3% of your portfolio with any given trade - eg by using stop losses $30-$90 below your entry price, for whatever it is you’re trading. I might suggest looking into spreads as a place to start - I’m personally a fan of bull put spreads. Defined max loss, time works more in your favor, extra cash up front. Look for tickers where you can trade a $1 spread to limit your losses, maybe something like SOFI or NOK. And if you have a margin account you may be able to keep your $3k invested, either in something interest-bearing like SGOV or directly in SPY or your index fund of choice.

hellario

I mean, I sold all my funds for cap gains before "liberation day" except one that would've still been taxed at income level. Put them into SGOV until there was a clear upward trend and bought back at a discount. Felt pretty good

KMPItXHnKKItZ

For the average working class investor this kind of stuff may as well be an alien language. The safest and best thing is just to stick with low-cost broad market index funds, invest as much as you can spare into those ideally over about 25-35 years at least, and then keep any cash that you do not need immediately available in tax-efficient cash equivalents like SGOV, a HYSA, or MMF.

SirGlass

If SGOV loses value to treasuries defaulting it won't matter if your puts print, usd will be almost worthless.

ThermalChaser

SGOV and chill. I'm not cut out for this

Garbage-Disposal-938

What are some effective ways to place a long-shot bet that Warsh will actually lower rates at his first meeting? Buy short term government bonds? Buy SGOV calls?

Ok-Yam-6616

Buying puts on SGOV? How low can it go?

SqueakyNinja7

I’d say set aside 50% of your total profit. Put it in like SGOV to get some interest but protect it. Then you’ll have enough come tax time. You’ll probably pay 40% roughly in short term capital gains.

SLP_SoCal

Imagine being ghey and having your money in SGOV

HelloTheirCruleWorld

I’m 70% cash in SGOV.

ThetaEdgeHQ

The reason they exist is mostly mechanical, not demand. Exchanges list options on most ETFs that clear a size and volume threshold by default, so the chains get created whether or not anyone wants them. That is why you see strikes with basically zero open interest and spreads wider than any edge you are trying to capture. As for who actually trades them, almost nobody, and for a clean reason. SGOV is a cash proxy with realized volatility near zero, so the options carry almost no premium. Selling a call on it caps your already small yield for pennies, and buying one gives you no movement to profit from. The fund already pays you roughly the front end T bill rate just for holding it, which is the entire point of owning it. If your goal is expressing a view on short rates, fed funds futures are the liquid instrument for that, as another commenter noted. The SGOV chain is there because the listing rules put it there, not because it solves a problem options are good at solving.

ChairmanMeow1986

Lack of liquidity and volume, because SGOV is used to park cash rather than as a speculative tool, its options chain features extremely low open interest and wide bid-ask spreads compared to better/similar ways to express the intent. SamuelJ264 mentions fed fund futures as an example, I would not suggest you jump into futures without study though. Nothing wrong with them and many prefer them to options, especially for some things, because you don't have to futz around the Greeks, but it is it's own market.

INFOWARTS

This just sparked an idea. If SPCE can pop on naming confusion, that can and should be exploited. Who wants to start an ETF with me with ETF as our ticker? “Just invest in an ETF,” boom, there’s our investor. Under the hood we just throw the money in SGOV or whatever. The type of person investing with us isn’t looking at returns, they’re definitely not reading a prospectus or other documentation. Literally can’t go tits up.

Ahamadrayasbaboon

Or a T-bill ETF like SGOV.  But, the literature suggests it is silly to exit equities at his age. 

booobReviewer

If you're already keeping your index funds, you're doing the right thing — timing sector rotations is hard. For the short-term money you mentioned, SGOV is actually a solid answer right now with rates where they are. If you want something with a bit more yield, healthcare is probably the best defensive sector that isn't overpriced — it lagged the AI rally so valuations are reasonable and demand is non-cyclical. Financials are more correlated with rate cuts, so timing matters more. Precious metals miners have had a good run already. The simplest approach: short-term money in SGOV, don't try to outsmart the rotation for cash you might need.

Sufficient_Habit5091

Of course SGOV is great if you *know* a recession is coming. The problem is we don't know what Fed will do ahead of time.

OxRedOx

Let’s say the worst happens and the AI bubble bursts and all the tech, ai, semi, etc stocks go down from PSI to FIX. What’s the best play for that? To get financials and healthcare, precious metals miners? Or just to put money in SGOV and wait? I’m leaving my index fund money where it already is, but I want to put my short term funds somewhere useful and I’m trying to see what’s not overpriced

Puzzleheaded-Net-273

That is the aggressive portion of my portfolio. I also own dividend ETF's, Covered Call tax efficient ETF's, MLP's in oil/gas, SGOV, Schwab MMF, and muni bond ETF (VTEB).

Low_Plastic363

You can stash the cash in SGOV while you wait.

Puzzleheaded-Net-273

I 'm down 39k today (1.45%) on my 2 Schwab accounts (taxable and IRA.) Have E-trade smaller accounts, SEP, taxable and spousal IRA. Haven't looked at those yet. I hold a large amt of SGOV, CC ETF's, munis, and dividend ETF's in addition to loads of tech inside my Schwab accounts. Have some money available for 🛍 shopping but didn't choose to step in front of this freight train (particularly in tech) today.

Sad-Airman

I'm like 50% SGOV and dividend funds right now been depressed the passed month watching all the gains others post in tech but glad on a day like today I guess. Sold my tech too early I thought we'd correct a month ago

EmbarrassedPart1256

Whew that was a quick one; I tracked it for a bit, tried to scalp it one good time & instantly regretted my buy, luckily got out with tiny gains after having a pending $SWVXX order so I kinda needed the cash (lesson learned about that one, maybe putting funds in $SGOV in the future by the round $100s). Also $RMSG no I didn’t catch it! I was busy this morning & letting things cool as I took a big loss yesterday. No more touching the main account, only working on growing the $2.2K tax-free account from here on out. But I knew $RMSG had some explosive vibes. $LGPS also popped off more today after I sold yesterday (for gains). Im intrigued by that one…

booobReviewer

The framing matters more than the allocation here. For someone who grew up poor, cash IS safety — suggesting stocks can feel like suggesting gambling. Instead of "invest," frame it as "preservation against inflation." A practical first step that avoids the psychological hurdle: buy short-term Treasury bills (4-week or 8-week) through TreasuryDirect, or a money market fund like SGOV or USFR. These pay 4.5-5%, are virtually risk-free, and feel less foreign than stocks. Once they see the interest hit their account each month, the concept of money working for them becomes real. Also, don't push too hard. At 5 years from retirement with a pension, cash isn't the worst position — they have less sequence-of-returns risk than someone with 30 years ahead of them.

corndog_messiah

SGOV

Yottahz

Sad thing is I have $300k sitting in SGOV and I am too paralyzed to reallocate.

HelloTheirCruleWorld

Rebalancing my portfolio- thinking 25% SGOV (cash incase market continues to fall 10% IBIT (young and want bit of exposure, plus that it’s 50% down) Rest VOO

Scar1203

Feels good to just be sitting here watching after throwing everything in SGOV yesterday.

newtownkid

Use Norbert’s gambit (have to go to the WS website to do it) if you want to exchange currency for a flat $10 fee. Then toss it all in a mix of VBAL, XDG, and SGOV (USD). That’s what I’ve started doing in preparation of an expected recession.

InvestingNerd2020

For emergency savings, use a Treasury money market or Treasury ETF since you live in NY city. This removes your state and city taxes on interest earned. - Treasury ETFs: VBIL or SGOV. Pick only one. Available at all brokers. - Treasury money market funds: VUSXX, SNSXX, or FDLXX. Only available at the big 3 brokers (Vanguard, Schwab, and Fidelity). Pick one.

Impossible-Use5636

Depending on your state tax situation, SGOV would be a better place for your 12-month fund Safe and maximize income is a challenge for the 100k JAAA PIMIX SCHP VCSH IEI all "safer" but capping growth below 5% VOO VTV more upside and downside