SGOV

kiwimancy

SGOV is ultra short term so it won't be affected in price by rate changes much at all. But bonds in general increase in price when rates fall.

No-Nectarine3277

Will SGOV keep the ~100 price when interest goes down? It's not clear to me if I risk loosing my principal.   Whenever interest rate ends up going back to normal, and people flock to more traditional, long maturity bond ETFs. Will only the dividend yield of SGOV go down? Or will also it's price? I guess price can go down a bit if people start selling in mass, but I was wondering, If I put 10k, and then SGOV yield goes to 0.5% and people start selling it, will the price go to like 1 USD and I would end up with only 1k ?  Thanks, 

superbilliam

60% in SGOV and 20% in something like SCHD or DGRO. The other 20% in money market fund. Use dividends from the ETFs as income. Could also do JEPI or JEPQ as the dividend part, but idk about the volatility or if I would recommend that to someone I don't know who is 80+. Not financial advice. I'm an amateur investor, but best of luck to you and your parents no matter what they do. I truly hope they enjoy their golden years and have many many more in good health!

Soft2CT

Have you looked at SGOV?

el_tacomonkey

> However the win rate of the trades are very high Define (for yourself) "win rate". Do you mean "options expire worthless" or do you mean "makes more than the risk free rate if the options expire worthless?" There's no value in assuming any risk if it pays out less than SGOV.

joe-re

Of course. I would park 50% cash so I can think about what to do with the money for longer than 5 days. If I have no ideas, I can always dca. But putting 50% in SGOV takes the pressure off of making a wrong decision.

kickinwood

If you want to go long haul ETFs, you can spread it around to different ETFs to reduce risk. VDC, GLTR, SGOV, TLT, etc. Just keep adding shares when you can. There's also the dependable monsters if you want some individual stocks - Microsoft, Amazon, Google, Coke, etc. I'm doing my "gambling" by grabbing 1000 shares of cheap stocks in the hope that they blow up years from now. RKLB and ASTS is what I went with - but I'm willing to sit and forget on those as well. If it doesn't pan out, that investment now shouldn't kill me come retirement, you know? You're young and willing to acknowledge mistakes, so you should be fine.

SirGlass

An ETF like SGOV is going to be your closest thing in the USA if you hold over a few days it would be almost impossible to lose money unless the USA goverment defaults

EcrofLeinad

That depends on how many years it is intended to remain invested. Short term (<5 years) I would put in something like SGOV or a treasuries based money market fund like SNSXX for example. If long term (>5 years, ideally 10+) then a broad market index like VT, VTI, or SCHB for examples.

TakingChances01

In SGOV as a high yield savings vehicle. In EDV for appreciation if/when interest rates go down.

AbbreviationsFar9339

eh, not really a fan of this. I don't think you can give numbers this specific w/ out know this persons expenses. * 3-6 months of expenses should stay in HYSA. * there is no reason to lock up 10k in a cd when you can put it in SGOV etf or money market for the same return. * I would say your VTI allocation is aggressive w/out knowing OP's expenses. What I would tell OP is to just put all future contributions that were going into savings into VTI instead unless they have some large short term expense.

TaxGuy_021

Oh I agree. I'm saying so long as they understand that SGOV has no chance of benefiting from a drop in rates, they should be good to go.

Sad_Chest1484

SGOV assumes little to 0 duration risk. Look at today. Bond portfolio is down. So is equities. Taking duration risk is negative carry, does not provide hedging benefits, and you are fighting the current. It increases portfolio volatility and has been the case since the Fed started hiking.

TaxGuy_021

So long as one is not investing in SGOV without understanding duration risk, I think it all makes sense. I park most of my cash on hand in BIL. But I use it as just that. A cash parking. 

bobdevnul

>So the dividend is not determined by how many days you held those shares that month? No, that is not the way that bond funds (or stocks, or stock funds) work. If you own the fund before the ex-dividend date you get the full dividend - even if you only owned the fund for one day before the ex-dividend date. Where does the accrued interest go? It is reflected in an increasing fund share price until the ex-dividend date. On the ex-dividend date the share price decreases by the per share amount of the dividend. [https://www.investopedia.com/terms/e/ex-dividend.asp](https://www.investopedia.com/terms/e/ex-dividend.asp) The ex-dividend date for SGOV is generally the first day of the month and the dividend is paid around the 7th of the month. Money market funds are a special class of mutual funds. They operate the way you are thinking. The share price is held at exactly $1 at all times. Interest accrues daily for the amount of the fund you own on each day, to be distributed monthly. When you sold shares, that created a realized gain or loss. That is the profit or loss for that transaction. Rebuying the shares has nothing to do with that. The price of the rebought shares will determine the gain or loss when you sell them.

TaxGuy_021

You do realize that SGOV is a terrible choice if you actually want to have some sort of skin in the bond game right? SGOV, just like BIL, is great if you are just trying to park cash. But their ultrashort duration means you have practically no chance of appreciation outside of collecting interest.

TaxGuy_021

Buy BIL and/or SGOV at the very least. That way you will earn some interest.

BigSpin75

SGOV is an ETF, and not a Mutual Fund that is counting the time of your holding. Dividends are paid on the pay date, period. This is evidenced by the fact that the price of SGOV ticks up daily. If you buy the exact same number of shares that you held before, you will be receiving that exact same dividend you would have previously.

Relevant_Ad1494

Your next to last paragraph has it correctly except that you are no pulling principal you are pulling gains. I retired a few years ago —-the market and my accounts lost 40% of all value—- brokerage and rental and residence! All terrible— instead of 100% I had 60% of my wealth. I reinvested a year and 5 months later and that grew to 300% of what I originally had. I still have not drawn principal—- I only draw a portion of my gains. And with the gains of the current bull market I plant to convert all to something like SGOV—- which is paying 5.13 currently and there is no time commitment and no state tax and very low risk(3month us treasuries) Advice seems to be drawdown at the rate of 4%—- however you don’t have to draw principal—- it helps if you can get your stash to 1-2 m!!!!!

s32bangdort

You could open a standard brokerage account at Fidelity and put that $35k into SGOV ETF which is a tbill ETF and get another percent in interest and have it state tax exempt (for the most part: have to check the percentage annually). Also the Fidelity “cash account” sometimes referred to as “sweep” account pays also higher percentage rate. It takes almost no time to open these accounts. As for the investment in VTI, only you can know your tolerance for risk. There are several studies concerning DCA or lump sum and that has been discussed 10x a week. See also r/bogleheads for similar discussions.

thedjotaku

It drops on the exdividend date, I believe, not on the day the dividends are paid. Look up SGOV for an extreme example

fledgling66

What are the tax implications holding your emergency fund in SGOV? I’ve got mine in FDLXX on Fidelity. Is SGOV just like any other dividend?

LanceX2

My whole EF is in SGOV

Embarrassed_Time_146

You should take this steps first, or you’ll be all over the place: 1. Define your goals. Be specific and realistic. Why are you investing? To be a millionaire in a week is not a real goal. Examples of real goals: To be able to retire, saving for the downpayment of a house, saving your your children’s college. 2. Determine what is the timeframe of your goals. Are they long term (10+ years), mid term (5-10 years) or short term (less than 5 years). 3. Develop an investing philosophy (this requires learning about investing). For example, I believe in diversification as a way to reduce risks and maximize returns (read about modern portfolio theory if this doesn’t sound intuitive to you) and I believe in investing based on academic research. I don’t believe in market timing, stock picking, market forecasting or performance chasing. This means that I will invest in broadly diversified ETFs that are either passive or, if active, systematic, rules based, and backed by academic research. I will also try to minimize expense ratios as much as possible. 4. Develop a strategy, according to your philosophy, for each of your investing goals. The standard advice is: cash or short term fixed income for short term goals, mid term fixed income and maybe a little equity for mid term goals, and as much equity as you can stomach according to your risk tolerance. For example, I invest in T-Bills funds (SGOV) for expenses that I’ll make in a year ir less, an Ibonds ETFs (bond funds with a set maturity) ladder for my short term goals, and in a 90/10 (equity/fixed income) portfolio for retirement and other long term goals. It’s basically a total US market fund, a developed country fund, three small cap value funds (two for the US and one for developed countries) and a bond fund. 5. After that, you do choose the ETFs or index funds you want. You don’t start with the ETF and see if it’s good. You already have something you’re looking for and compare all available funds that can fit your strategy. You take the following into account: a) If it sets out to follow an index you see its past performance to see how closely it follows it (not if it surpasses it). If it’s an active fund, you do your due diligence, do some research about their process, etc. You just don’t see what has performed the best recently or what has the highest yield. b) Assets under management (AUM). The more the better (unless you’re looking for something very specific). c) Average daily bid/ask spread (it’s better if it’s lower). d) If it’s a fixed income fund: What’s it duration and average maturity (they should match or be lower than your timeframe). Finally, you always read their prospectus. It tells you you their strategy and their risks.

el_tacomonkey

I compute annualized ROI for every trade, but only use it to when reflecting and grading my performance (also this is automated through a Google Sheet, and I wouldn't bother if it didn't happen automatically). I used to get options data and compute annualized ROI for every strike and expiry, but quickly realized that this just called attention to risky trades and so turned off that data pipeline. I use it when entering into a CSP, though. I know what strike price I'm okay with, and I'll compute what premium would be required to beat SGOV, make 10%, 15%, and 20% annualized ROI over a range of expiration dates. I use these figures to say "no" to trades that aren't worth it. The main learning I'd pass on is to be careful when focusing on annualized returns as a tool for deciding which options to sell. It's deceptive for this because it can make really stupid trades look brilliant. It can be a decent tool for evaluating individual trades in hindsight, but it's just one of many. One caveat to all my advice, though, is that I'm a value investor first and an options trader second, and I carry a value investor's risk aversion over to options trading. My priorities are: * don't lose money * seriously, don't lose money * collect premium so I can't help anyone find retina-detaching returns.

Financial_Freedom53

I am based in Singapore and dividend paid by SGOV is taxed at 30% while interest income is not taxable.

No-Investigator-9773

I use IB and also like interest in cash. Have you considered using TOS and buying SGOV for interest?

Xzyrvex

You can find treasury bonds right now above 5%, you can buy SGOV for really short term, or something like VGLT or VGIT for a bit longer. Even better would be a money market fund, if you're doing your HSA through fidelity it'll automatically put money into those.

mdatwood

If you're friends aren't happy for you, then find new friends. In the scheme of things it's also not that much money. It's not like it's enough money to put your friends on payroll or buy them houses. After taxes, you'll barely have enough to buy a middle class house in a second tier coastal city. Take 30% or so and throw it into SGOV for when tax time comes around and put the rest in VOO or something and have fun watching it grow. Once you're out of college, knowing you have a fallback will let you take some career risks that you might not otherwise take. Good luck.

TakingChances01

SGOV pays 5%+ and price only fluctuates by the interest payment monthly. Bond fund.

Rippedyanu1

As everyone said, take care of that money and use it to aid yourself 30 years from now. Enjoy your life and live from the interest of it being in a savings account or CDs or something like SGOV. Don't buy stupid shit with it or use it as a down payment for stupidly large house and just relish the fact that you won the game of life. Literally. As long as you aren't stupid you are financially set for life. With the interest per year along you can afford an extremely nice house and car. Especially if you decide to just work for funsies and essentially a second income.

MONGSTRADAMUS

FLOT has higher yield right now then both SGOV and USFR/TFLO. It would be an option if you wanted corp exposure in pretty short term . Its presently 5.7% or so. I personally don't like corp bond for an number of reason so I personally don't use it , I am using USFR right now for ultra short holdings.

ApplicationJunior832

SGOV all the way

MrsEveryShot

I learned my lesson in ‘21. time to SGOV and chill

joe-re

As I said: risk free interest rate from t-bills. If I invest in something riskier with higher volatility, it better have higher reward. It's an approximation, since it fluctuates, but you get more or less that by buying SGOV.

Lost-Practice-5916

Nothing is more secure than having your own T Bills. Usually pays better than SGOV or MMFs too.

StatisticalMan

Yes. As are all dividends. Dividends are never free money. They are just paying you with your own money. The size of the dividend relative to the price, low volatility, and the regular nature of the payments just makes it more obvious with SGOV.

Richard_Judo

I noticed SGOV has a monthly price cycle where it resets on the 1st and pays dividends near the 7th. Do you know if there is an impact to dividends if I sell near the top of the cycle, before the regular payout? I'm trying to figure out the best strategy for liquidation.

StatisticalMan

Sadly there is no universal standard. There should be a disclosure filed by the fund which goes under a number of different names which breaks down the taxable vs tax exempt portion of the distribution for the year. For SGOV it looks like this: [https://www.ishares.com/us/literature/tax-information/2023-ishares-us-government-source-income-information-stamped.pdf](https://www.ishares.com/us/literature/tax-information/2023-ishares-us-government-source-income-information-stamped.pdf) They put one of these out early in the following year (so Jan or Feb 2024 for the 2023 tax year).

cafedude

> Note SGOV isn't guaranteed to be 100% state tax exempt. Last year it was around 93% tax exempt though. You have to compute the taxable vs tax exempt portion yourself. It is pretty simple but if you want a statement from your brokerage showing tax exempt interest then buy t-bills instead. Oh, I see. I imagine this is also the case for the vanguard federal and treasury money market funds. Where will I need to look to determine the portion of interest that's state-tax exempt?

internet_poster

T Bills > SGOV/other listed money market funds >>> HYSAs in terms of safety, but even the HYSAs are almost sure to pay out if the shit hits the fan (as with SVB/FRB and others)

SnS2500

> Is there a downside to SGOV vs. a Money market fund? No. They have slight differences that might make a particular person prefer one to the other, but they are basically the same, assuming you are comparing SGOV to a state tax exempt MMF. > Is it less safe? Basically no. Both have minuscule risk of US government collapse.

StatisticalMan

t-bills are not really "locked up" given you can sell them on the secondary market. You may be forced to sell them for a very small loss if rates move sharply against you and you need the money now but that is no different than SGOV. SGOV is just buying t-bills. It is more flexible and convenient in exchange they take a small fee off the top. The risk profile is nearly identical and incredibly low.

Valkanaa

If you buy SGOV you'll get the same rate for $0/month

Noveleiro19999

Whats the diffeence between TFLO and SGOV?

uninspired

BIL and SGOV are tax-advantaged over bonds.

SnS2500

TLT is not a place to park cash. It's a high risk investment. SGOV and BIL are examples of ETFs to park cash.

RemarkablePassion726

You're heavily invested in highly leveraged growth companies. Consider adding some consumer staples or healthcare as a hedge. ABBV has a very low correlation with the rest of your portfolio. For an uncorrelated growth play, CVS is interesting if they can manage to execute on their turn around. That said, on the order of 3-6 months, it's hard to beat some good old fashioned SGOV or VUSXX while you decide what you want to pull the trigger on. 5.3% is nothing to sneeze at, especially with valuations across the board being so high.

quantumoutcast

Yeah, sounds like a good deal. Can you post the link here? FZDXX is very high quality with a slightly higher yield, but I prefer FDLXX because it holds only treasuries whereas FDLXX has a little bit of credit risk. Also FDLXX is state tax free, so for me it is higher effective yield. It depends on where you live and what your tax bracket is. Remember these funds are not FDIC insured, but CapitalOne would be. Another alternative after you grab the CapitolOne bonus is SGOV ETF. I have some money in there too. It holds 0-3 month Treasury Bills, so as good as insured, and is yielding 5.27% yield.

DancesWithTards

GOVT and chill. But keep a portion in ultra-short treasuries like SGOV/CLIP and floating rate treasuries USFR/TFLO. If you live in a state that taxes treasuries, go for ICSH. You can sell the ultra-short funds when the yield curve un-inverts.

mrnoonan81

12 shares of VOO is approximately 12 shares more than the average 18 year old has invested. For every dollar you invest today, it may be worth 97 dollars by the time you're 65. That being said, it may be worth 0.95 in a year. It's more of a long term investment. If you're looking for shorter terms, HYSA, CDs, money market finds, and certain ETFs (like SGOV) are more guaranteed to produce a yield over the short term.

MrP0000

There is Fedaral Home Loan bonds. I saw some at 6%. They are callable though. So you may have to repurchase more frequently.    Or just SGOV ETF if you want to be more passive. 

AICHEngineer

For a bank with a HYSA, I've enjoyed my experience with sofi the last two weeks. You need a job with direct deposit to qualify for the HYSA tho. Even better than a HYSA would be to leave extra money in a brokerage and at least collect the risk free rate from a money market fund (at fidelity, they have SPAXX which is ~5% apy due to current Fed funds rate) or from a tbill fund like SGOV or a synthetic risk free fund like BOXX. SGOV is better if you have high state taxes, BoXX is better if you dont

httmper

Honestly, without knowing more info it’s impossible to give suggestions. Missing info: age, income, current financial situation, risk tolerance. So here is real general advice 1) if you don’t have it, create an emergency fund using short term treasury ETFs like USFR and SGOV 2) based on risk tolerance and Timeline, this should mostly be in a 2 or three fund portfolio. Total US, total ex-US and possibly a bond fund depending on age. Low expense ratio funds.

Valkanaa

I can beat a HYSA with no risk at all. $SGOV pays 5.3. It's actually better than that because those are funds that you can immediately put into the market. HYSA will need 3+ days to transfer in. And right there with you. I buy value. It doesn't always win but it gaine fairly consistently

Livinlovin123

These look pretty good. Assuming I am reading this right. At a high level, every month SGOV pays out 1/12 of the estimated yield. At the moment that looks to be roughly 1/12 of 5%?

uninspired

You can just do a treasuries ETF far more easily and get the same state tax exemption. I hold SGOV rather than money market funds. Monthly disbursement. Highly liquid so could sell on an instant if you needed to.

Noveleiro19999

Whats the difference between TFLO and SGOV for bonds?

Noveleiro19999

Whats the difference between TFLO and SGOV for bonds?

TequilaTrader

I have some cash in SGOV which is useful because I can move it quickly and it keeps my account balance high. Over 5%.

AllTooWell31

#Attention I have upgraded my price target for SGOV to 100.70/share. 💎 🙌

Socom_US_NavySeals

Prostitutes don't accept SGOV nor do my dealers.

throwaway1177171728

Why? You can get 5% from SGOV and buy/sell it instantly every trading day.

SinisterStroodle

https://preview.redd.it/hn7ui0ccn7zc1.jpeg?width=1170&format=pjpg&auto=webp&s=38439b03a6156fd5fc06b9a14f24c4afda96a591 SGOV the only green in my portfolio rn

realdonaldtrumpsucks

Thank you! I’ll be buying SGOV (prefer it over BIL?)

dh6636

Put the money in a brokerage account and park it in SGOV till you want to reallocate. It is an etf that mimics short term treasuries. It’s highly liquid, zero lock ups, and the fund invests in t bills so you can still realize the tax advantaged benefits of actual t bills. I’ll never buy a CD, I really don’t understand the purpose they serve in this day and age.

mdatwood

What I *did* in your position was pay off any non-mortgage debts, put the rest in an index fund, turn on DRIP, and call it a day. If the money is taxable, run the numbers and put some aside in SGOV or something similar for tax day next year.

AICHEngineer

The legitimacy of the product is enhanced by the inflows to the fund it's experienced. The tax benefit should undoubtedly out weigh the higher expense ratio. Also, it's chart shows it does what it promises. It's a diagonal line with almost no volatility on a multi month scale. If they can avoid distributions, they do, unlike SGOV which is why SGOV is like a jagged blade.

AICHEngineer

If the CD could lock in a 5% rate, that may be very tempting. It hedges the risk of fed funds rates dropping, which would lower HYSA yield and short term Treasury yields. You can do better than a HYSA with a money market fund, or a fund that produces the risk free rate with treasuries like SGOV or BIL. BOXX is also an option, which is more tax efficient than SGOV, but may depend on your state. It uses a box spread to synthetically produce the risk free rate but under better tax treatment.

Valkanaa

I wouldn't put your emergency fund in checking. There are two options that are better. HYSA or holding short term bond ETF like SGOV That should (currently) pay out 5.3% The downside is you will need to wait a few days to ACH transfer funds into your checking (which generally pays nothing) At 3k that's probably too much work, but mine is 35k so... Ideally you want enough to support you for 6 months

httmper

You can look at short term treasury ETFs also. Such as SGOV, USGR, TFLO, SHV

hgreenblatt

"Sit in Cash" . May not apply to you, but I get 70% buying power on my SGOV, that returns about 400 per 100k per month just now TD account until next Sunday.

Sucked-Off-JPOW

Pooters on SGOV

MomOnDisplay

Yes, hello, I would like to YOLO 0dte SGOV puts if at all possible

MomOnDisplay

Lol why is SGOV a trending ticker here

throwingitanyway

i've only heard of SGOV and BIL. do you prefer TFLO for a specific reason?

AllTooWell31

Guys SGOV is the same thing as a CD or hysa right?

AllTooWell31

Bro just buy SGOV shares, I think it’s the same thing but paid monthly

JPows_ToeJam

SGOV hitting 5.25% and no chance of losing any principle

JPows_ToeJam

SGOV is paying 5.25 and hasn’t nearly the fluctuation in your baseline investment

RetiredMillionairee

UFB Direct 5.25 % FDIC Insured. No market risk. Easy access to funds. Easy to open an account. One of the problems with SGOV and BIL and other bond ETFs that folks fail to mention is that the interest payment you get is subtracted from the underlying price of the ETF thereby causing the price to go down on the ex-date, just like a stock dividend. Example: If SGOV was trading around 100.80 at end of April. May 1st was the ex date and in the amount of 0.42/share. As a result, the new starting price of SGOV is 100.38. So while you will get the dividend of .42, your underlying holdings decreases in value. So if you need to liquidate right after the ex date, you’re probably going to take a little loss on the underlying holding. Now, SGOV and BIL and others somehow increase in price over a month’s time and tend to get back to their previous month end values. Using the SGOV example, it will probably get back to around 100.80 by the end of May. Because of all this, I would not recommend a treasury bill ETF for an emergency fund when you can get basically the same yield on a savings or checking account. I would recommend SGOV or BIL for any Robinhood IRA account that has idle cash. I found out that they do not pay interest on cash balances in IRAs (they do pay interest on regular brokerage account cash balances, though). Since they pay no interest on cash in IRAs, you might as well put it in SGOV or BIL while it’s sitting there and get ~5%.

aplusivyleaguer

I did my first SGOV purchase 2 weeks ago too and I understand why my position shows a loss after ex-div date. So is the dividend always supposed to overcome that loss? That's my confusion right now since the loss and gain might cancel to no net gain?

AbbreviationsFar9339

SGOV

mdatwood

No idea about wealthfront. SGOV is 90%+ t-bills so it state tax exempt in most (all?) states. It pays out a dividend monthly. IMO, it's a great way to keep cash you're expecting to need soon. There are also others with similar characteristics, but SGOV is my goto.

Affectionate_Law3788

He's going to say a lot things, eloquently, and at great length, but I'll summarize for you. >!something something something inflation. Something something something higher. Something something something LONGER!< My position/play? Hold stocks you have now (unless it's some seriously risky stuff that's going to get screwed by its own debt). Buy/hold SGOV. Keep a good bit of powder dry while we see how this plays out over the year.

internet_poster

it really doesn't matter much when you buy/sell SGOV, and there's no real way to time it. the stock gradually rises every month in anticipation of the dividend, and drops by a corresponding amount after it's paid out. just look at a 1-year+ timeseries of the stock.

B_P_G

SGOV hasn't paid out since April 17th so your time scale doesn't make sense to me. But normally it will pay around 45c/share. So if you buy it two weeks before the ex-dividend date (I think that was yesterday) then your position will show a loss for approximately two weeks - but of course you'll have the 45c/share dividend. All shareholders get the exact same dividend no matter how long they've held the etf.

ohwut

Of course you’re not going to get a month’s worth of return for 2 weeks of investment. SGOV isn’t a savings account so you need to understand how bond ETFs work. Very ELI5. Every month the underlying bond yield is added to the ETF price daily. Lately that’s ~$0.45 per share. At the end of the month the fund pays the interest it earned on bonds as a dividend. Dividends decrease the share price by their amount. So theoretically you’re earning around $0.45 per $100.30 (the base share price of SGOV which will also change based on the underlying bonds value) so ~0.45% per month per share owned that’s 5.4% per year. If you buy mid-month the first 2 weeks of interest have already been added to the share price so you’re not getting that yield.

RightYouAreKen1

SGOV hasn’t paid its monthly interest yet. Its pay date is May 7th. That $50 you got must have been from the time you had funds in your sweep position (money market most likely).

SirGlass

>Therefore could I buy SGOV each month on the drop after ex-div and sell just before ex-div, to effectively take the income tax free? Or am I completely misunderstanding/overlooking something? I am not exactly sure if the price rise counts as capital gains or intrest but even if it counts as capital gains well you would be taxed at a short term capital gain rate what is basically income and presumibly be subject to state taxes as well So unless you have losses to offset the gains it would not really be tax free?

TheLastLostOnes

Noob question regarding $SGOV dividend Apologies for this, just looking for clarification. I purchased $sgov throughout the first two weeks of April. I understand that it “drops” every first of the month and this is equivalent to the dividend payout. My question is am I entitled to any dividend payout today (may 1st)? Or does the position need to be held for over a month and my first payout for my April purchases would be June 1st? My account balance reduced due to the SGOV drop, but I did not get any dividend payout. Thanks for any insight.

Affectionate_Law3788

Even then unless the crash was towards the beginning of that 12 months, it wouldn't make that big of a difference. Given interest rate levels though, I can see a serious argument for dumping it all into SGOV or a similar ETF and then DCA evenly over 12 months. That way the money is still earning 5% while it's "sidelined". (Also while RH gold gives you 5% now, I think the govt. bonds 5% is superior for the state tax benefits) 

taplar

The oscillations of SGOV looks to on average be in the 0.30 to 0.50 range. And it's price is currently in the $100 range. So if you had $1,000,000 you could by about $10,000 shares, which on oscillation would then get you around $3,000 to $5,000 gain. That's a 0.3% to 0.5% gain. That's not even a 1% gain. You can easily get more gains just from normal market fluctuations with most equity investments. What you're describing may work, but I highly doubt it is worth the effort when compared to other things.

thecyclops13

Is it a better option than SGOV?

mdatwood

Yeah, OP needs to understand their state tax situation. There's also SGOV which is where I put a large some of cash between properties last year.

catclemenza

Buy one month treasuries in your brokerage account. If you don’t wanna do that buy SGOV. These options are better than money markets because they aren’t state taxable.

itscurt

SGOV

totosea

Easiest - HYSA, FDIC insured. More tax efficient (no state tax) - T-bills, treasury fund or etf like VUSXX, SGOV.

TequilaTrader

Pay off bills then put your tax portion in SGOV. spend some frivolously

Parallaxxer

The only thing you should be buying is $SGOV