SGOV

SerMumble

Start with a high yield savings account or open a brokerage with vanguard, fidelity, schwab or similar reputable company for your country and invest in a money market like SWVXX on Schwab, treasury bonds like SGOV, or similar. This will help you stay ahead of inflation with 3-4% interest/dividends until you learn more about what to invest in. Popular assets typically are etfs that track indexes like the S&P500 SPYM, Nasdaq 100 QNDX, total world index VTI, and similar. Some brokerages support automation like Schwab and their S&P500 SWPPX mutual funds can invest automatically on a weekly schedule so you have more time to focus on income and life.

drakilian

Why would you ever put your money there when SGOV is equally liquid and has a greater return?

pr0prfkt

VOO QQQM, SGOV for short term cash. You will learn more over time. You can do all with just those honestly.

jrader

I know this is WSB, but you don't have to full port every decision. Don't y'all ever go to like 10% cash in SGOV and set staggered limit orders at support?

rithsleeper

How is this even measured? Is it cash that is sitting in savings accounts? Or is this people sold assets in a brokerage and is sitting in SGOV or just idle? How do we know that cash would be invested if choices were made? Most people I know glaze over if I try to explain how to put their money into a brokerage and just buy VOO. It’s amazing. But yet they have a “savings” account with wells fart go that requires them to deposit $20 a week to avoid a fee.

DependentAnimator742

So many of you have told the OP to buy and hold, then sell sometime in the future, after appreciation. You're missing a key point: the OP is looking for some immediate or near-term income - there's a sh\*#load of frustration and impatience in that post. The other thing y'all aren't hearing is that the OP seems to be stuck in a 'no/low risk but high reward' mindset. The OP mentioned having a bond fund/funds. That tells me real risk aversion. So the OP needs to relax a little AND be rewarded with seeing tangible portfolio increases in the Roth, my guess within the next 6 mnth or a year, before he/she jumps off a cliff. I'm going to suggest baby steps for this OP. If it isn't like this already within the Roth, change it to: 1/4 Bond of something like SGOV, for security, 1/4 Growth like VOO (which will be realllllly tough for the OP to have faith in, this can take years in a flat market), 1/4 in a middle-of the road ETF like SCHD, and 1/4 in covered call ETFs, like QQQI and SPYI. << That last one is where the instant gratification is. Further, you all are wrong to say ETFs don't appreciate. I'm looking at my Schwab now and I have some covered call funds - SPYI, for example - that has a 38% appreciation in less than 2 years, PLUS the 10%+ yield. The worst performer I've had (which I sold a few years ago) was JEPI. I have ETV, which gives me a solid 7% yield with only 12% appreciation in 2 years, but I keep it because it is tax-advantageous, somthing the OP doesn't need to worry about. I also have GPIQ and NIHI, among others. I'm trying to post a screenshot of a partial view of my portfolio on here but I can't seem to do so. All in all, I don't believe that over the long term the OP needs a big covered call portfolio. But to kick start their psyche, yes, it's a good move.

hybridoctopus

Legitimate question, do they count cash-equivalent ETF like SGOV as cash?

ErroneousEncounter

Short term bond funds like SGOV. Literally the only thing that won’t drop aside from cash, but the benefit is it makes a small amount of interest (3-4% right now). You basically want to stay invested, but start moving money over to SGOV as you believe the crash is getting closer. Of course if you are not in a tax advantaged account and you’ve had your investments for less than a year, there’s an opportunity cost to moving them as you will have to pay income tax on your gains instead of capital gains tax.

verves2

SGOV doesn't pay dividends, it pays interest. It's a bond fund, not a company distributing profits.

Dracomies

Whatever was going to cash, maybe put it in SGOV instead?

CryingInTheCasino

You don’t have to leave the market but just go into something less risky as a resting spot. For example sell the shares and immediately buy SGOV. Then sell SGOV when you are ready for your next move.

Muy_Division

So you keep 30% of your port in cash/SGOV/MM? I always keep some dry powder but can’t bring myself to keep more than around 6%

bam2350

I'm going to provide extra context, which I think this conversation needs. I opened my brokerage account in 2015 with the goal to get better gains than my checking account which had accumulated too much cash. Lesson/question/change #1: Why didn't I figure out HYSA??? At the time, my father was my coach. He was fully retired, 75 years old, and living on dividends, social security, and pension. His guidance, which made sense to me, was towards dividend paying reliable stocks of companies that we're going to fail. For example MMM or ATT. He told tales of stocks he "couldn't afford to sell due to gains/tax" and the neat companies he had invested in (BGS) that had done so well. It seemed he clearly had it figured out. In time, Dad has passed, I have taken control of his old accounts to provide for my mother. There is clear evidence of emotional investing, and choices he made clearly haven't all panned out. For example, the BGS shares he gifted me are now nearly worthless. Lesson/question/change #2: Dad wasn't a genius and didn't always get it right. Lesson#3: Emotional decision making is frequently not the best. However, my mother remains well provided for, even as her costs skyrocket in assisted living. Dad was a proponent of picking individual stocks. Through time I have largely moved away from this. I continue to hold individual stocks, which has generally been OK, but hasn't "beat the market". However, since my objective was to do better than my checking account, I'm doing very well. Lesson/change #4: Instead of focusing on picking individual stocks, using broad index funds is easier and quite successful. Lesson #5: Understand and remember your objectives. At this point, VOO, VTI, and DIA account for about 30% of my brokerage portfolio. A few big winner individual stocks and a few more funds (including SGOV) round out my top 10 holdings. Going forward, I will almost certainly continue to focus on adding to my VOO, VTI, and SGOV positions. I have benefited from and enjoyed my dividends. However, some of my worst moves have been "dividend chasing". At one point, rather than benefitting from the modest monthly dividend from VOO or the declining % yield from CAT I chased dividends in a bond fund RA. I'm about 25% down on that, and while it continues to pay well above 5%, fees will eat into that. I'd have been ahead to purchase VOO, CAT, or KO. Buffet has benefitted from dividend stocks, but doesn't pay a dividend... Lesson/change #6: Don't chase the high dividends, benefit from strong stocks that pay a modest yield. Time in the market....

CornerOne238

6 months? It would be useful if you stated your time frame in op. With 6 months, your only option is SGOV or BIL. Everything else will risk losing principal over such short time frame.

CornerOne238

If this was true, SGOV price would be close to zero by now. Dividends simply convert profits and growth to cash. Yes, share price drops on ex div date but for quality dividend instrument it recovers just fine and the principal is preserved.

Impossible-Use5636

A good dividend return will be somewhere in the 5% range. 3.5% or so in SGOV with tax advantages, 6% in riskier vehicles. After tax, that's about $4,500 a year at best. Less than $100 a week. Get a part-time job and leave the portfolio invested.

dolarizado_br

Great framing. I’ll add an angle most US-based folks never have to think about: I invest in US markets as a foreigner, and from the outside the “cash is a disaster” point is even sharper. For you, cash is at least denominated in your home currency the loss is “only” inflation. For someone like me, sitting in cash means eating inflation *and* being exposed to whatever my local currency does. So the bar for “just hold cash” is even lower when it’s not your base currency. The reframe that works on cash-hoarding friends, in my experience: cash isn’t “safe,” it’s a *position* a 100% bet that money keeps its value, which history says it slowly doesn’t. They think they’re avoiding risk, but they’ve just picked the one risk that’s guaranteed to show up (inflation) over the ones that are merely possible (a crash that historically recovers). Framing it as “you’re not out of the market, you’re 100% long cash” sometimes flips the switch. And yeah SGOV/T-Bills for the emergency buffer is the sensible version of “safe.” That’s not the same as parking $400k there and calling it a retirement plan.

Various_Couple_764

SGOV has a yield of 3.8% currently inflation if 4.2%. Meaning Anyong holding cash right now is loosing money due to inflation at a rate of 0.4% per year. The goal of many investors is to have a rate of return about double the long term average rate of inflation. That means you need a savings account that pays about 6% interest. I doubt you can find a bank willing to pay 6%. but dividend funds like UTG 6.4%, UTF 7%, PFFR 8%, CLOZ 8% EMO 9%, PBDC 9%, ARDC 9%. Wutg these funds you basically grow you money at about twice the longe term average rate of inflation, and all of these funds have less volatility

SenselessSensors

What’s better than SGOV and is widely available?

EpicDOgeMC

It’s genuinely true though. In most things learning will always improve your performance. In investing that’s really not the case. Any time spent learning is honestly waisted time. All you need until you retire to know is open a roth, fill up your 401k to match, 3-6 months of expenses in SGOV or a HYSA and the rest in VT. Literally all you need to know right there.

Apprehensive_Elk2608

> SGOV is losing to inflation It is, but not by much, and mostly on tax drag. I agree with you though, bonds exist for a reason. They do scare people though because of 22'.

whitenoize086

Usually telling them to go VOO or VTI doesn't work out cause what if the crash comes. I start by getting them to open a brokerage and go full SGOV. Then remind them of the VTI gains comparatively over time.

themanclark

SGOV essentially pays interest and can be sold quickly. Cash secured puts require cash or margin. But the broker doesn’t charge interest on margin used to secure puts unless you actually get assigned shares and need to use capital.

AssociationFit3009

You don’t pay taxes on your principal investment just the return. You literally cannot come out behind if the stock increased in value. You have to pay short term gains on your HYSA/SGOV if you pull it early too. They protect your downside it’s a risk/reward issue more than a tax issue.

sharp315

10 years of "emergency funds" is not really an emergency fund - you simply prefer cash to equities. define that as part of your allocation and stop calling it an emergency fund. btw SGOV is losing to inflation. if you are going to sit on that much cash you are better off in long term bonds.

AssociationFit3009

Paying taxes on gains is a luxury problem. Having to cash out while you’re down is the only thing keeping me from 100% equity. I only keep 1-2 months expenses in cash since I have credit. I honestly regret leaving my money in SGOV with the returns this year but now I’m scared if the market tanks I’ll get laid off and lose half my savings.

milkplantation

Nothing will survive a true crash. Outside of short term treasuries, everything will get crushed. A market correction is inevitable, but we also can't predict the cause or type of market decline, so it's difficult to forecast which ETFs will fair better. As an example, VOO's valuation is very rich, while VXUS has a lower valuation. Logic would suggest that VXUS is priced for more growth over the long term, but few could have predicted the current issues in the Middle East. Global and emerging markets are more sensitive to fluctuations in oil prices than the U.S., and accordingly, when Hormuz was shut down, VXUS was hit harder in the drawdown. So, as the saying goes, "diversification is the only free lunch in investing." With that said, you could buy the whole market with 80-90% of your portfolio in something like VT total world ETF. Or, you could mix VTI and VXUS to a ratio that suits you. It's also worth noting, though not an ETF, Berkshire Hathaway is a diverse holding company and stock with the most downside protection. They have 400 billion dollars on the sidelines in the event that a crash does occur. They also have a floor in how far the stock can actually fall as they buy back their own shares with that 400 billion if the price decreases enough. They also hold a lot of recession proof businesses like railways and energy companies. The stock tends to underperform the market during a bull run, of which we're currently in, so you will have to accept less portfolio growth in the near term in exchange for that downside protection. One last note, keep your cash in a high-interest savings account (HISA) or buy short term treasuries (T-Bills). Both HISA's and T-Bills are often called cash equivalents. They'll mitigate the capital loss caused by inflation while giving you modest returns with zero downside risk. SGOV is an ETF that acts like short term treasuries, paying you out with a dividend by holding government debt. Look into how this works. It adds up.

Standard_Tea8250

I feel like taking all profits call it a year after 65%ytd and put it all in SGOV

Singularity-42

I call my SGOV position "cash". As far real cash I have almost none (just operating few thousands).

Classic_Chapter_1503

I’m managing and trust and that’s exactly what I have two years of expenses in SGOV and the rest in 4 ETFs the gains from the ETFs far exceed the amount needed for expenses.

UnfairDiscount8331

Somebody else on the comments too suggested SGOV. I’m definitely going to look into that.

themanclark

I thought the idea was the park your money in SGOV and then sell puts on other stuff using “free” margin.

Over-Celebration-168

Selling options on SGOV 🤨🤨🤨, it doesn't move like stocks there won't be any buyer who you can sell to.🤦🏻🤦🏻🤦🏻

__redruM

March was a good entry point for dip buyers, I grabbed more SMH then, and would certainly grab another dip like that. I’m only 5% SGOV for the next DIP opportunity.

Stooper_Dave

My SGOV is the only thing green today! Woo!

Broke4Life

Hey, incase so of you newer guys didn't know, you can use SGOV ticker like a HYSA. Check your tax implications but if your money is in your brokerage, might want to just park it there.

ttamrez

This is where I house my emergency fund - all SGOV.

abeBroham-Linkin

CD, HYSA and any other ones are meant for short term foreseeable future type purchases; within 3-5 years tops. If it's to stay there longer than that, it's better to put in a taxable brokerage account. Leave it in SP500 index and just leave it. It's up by near 10% this year, better than that 3%. I've split 50k(70/30) into brokerage/SGOV. Loooong way to go until retirement

No_Paleontologist506

SGOV or favorite money market in taxable account for emergency fund. The rest in auto weekly investment for whatever mix you like that you listed, sell ONLY when there is an urgent expense to pay for. That’s it, that’s all anyone needs to know. Someone your age should have CD’s unless you have a large known expense that you KNOW the date of spend. Otherwise, short term in SGOV or face MM. Learn to automate. Makes life so much easier!

UnfairDiscount8331

I hadn’t thought of SGOV. Thanks for the suggestion!

Safe-Informal

SGOV is short term Treasuries with 4% distribution. It also has tax advantages.

therobshow

Holding about half a milly in SGOV currently 

Illustrious_Gift1609

Thank You. So buy and hold SGOV to avoid capital gains and the monthly divvy is state income tax free. Versus paying taxes on the 3.3% I’m getting in my HYSA. Now it makes sense. Thanks for clarifying!

StonkCat27

I keep my extra cash in WEEK, it’s a little less yield than SGOV but I get weekly pay outs on it. If I have to tap some of the money I’m not missing the full dividend that month, if I’m adding money weekly I get those dividends too.

Vast-Worry-4834

Not sure what your asking exactly. SGOV is about 3.8% currently. My state has income tax. You dont have to pay state income tax on SGOV, only federal. Pays monthly. Best ive found for the purpose of a liquidity. Most CDs and HYSA are in that % area without the tax benefit.

Some-Internet-Rando

One of the best general purpose investment strategies is to "balance." You pick some (small) number of assets that don't vary together very much -- say, QQQ, IAU, and SGOV. You then pick an allocation -- say, 70%, 10%, and 20%. Then, on a regular schedule (once a month, once a quarter, once every 367 days, ...) you figure out what your current balance is, and you sell the excess, and buy the laggard. This makes you "take profits" from the things that are doing well, and it "buys the low" for things that are doing poorly. And as long as IAU wont' crash when QQQ implodes, and SGOV doesn't go away when the gold bugs die off, you'll always have some collateral for the balancing, you won't be wiped out with no ability to "buy the dip." Which assets you go for, and what allocation fractions you choose, and how often you re-balance, depends on your particular risk and strategy and vibes. Also, the re-balancing is easier to do in a tax-advantaged account. Else, you'll typically want to add fresh cash to the asset class that is falling behind to attempt to balance up, but not sell the winners very frequently, and compare the cost of "sell highest" versus "sell long-term holdings." Taxes just makes the math a little more complex but doesn't change it fundamentally. I was in 95% equities and 5% gold in 2008, and those 5% were still a good thing to have at least SOMETHING to sell off to buy the low. Note that this is not "market timing" other than in the most general sense of "things will move up and down somewhat independently." If the NASDAQ, gold markets, and US government all go down the toilet at the same time, it won't help.

SomePolack

I just went long a bunch of ETF's and put the profits into SGOV I hit new ATH every few weeks but it's only by like a couple hundred dollars

Illustrious_Gift1609

Wow, this is making me feel out of touch!! I’ve got 8 months of living expenses in a 3% account. SGOV is worth the taxable income?

Apprehensive_Wish142

$SGOV is the way.

I_HopeThat_WasFart

ideally your positions are secured by SGOV in most brokers with zero margin usage wide swings require more hedge, but the idea of vol trading is keeping price swings and gamma at bay so yeah you need a bit of capital to hedge to being price unbiased

Mefreh

I love my SGOV, green every day.

Me-Regarded

I'm going all in on SGOV. Wish me luck guys!

Vegetable_Link9896

Are you young with retirement accounts? 100% stocks babyyy (like VTI + VXUS). Got some more cash for shorter time horizons (8-15 years)? Yeah I'm holding about half of mine in SGOV while still investing the other half.

usa_reddit

I have some dry powder in SGOV and the other 70% is diversified.

Odd-Guava9894

The issue IMO is that even if you aren't looking for growth there are now products that accomplish the job of being safe in a downturn more effectively than a generic bond allocation these days. If you are talking short term cash equivalents when you talk bonds, like SGOV, then I see the place for them, hell if you are talking about buying and holding individual bonds until expiration, they can make sense, but I don't think holding intermediate or long term bond funds as a hedge against downturns makes any sense at all these days, which is what most people end up doing when they hear they need to hold bonds. They are not uncorrelated enough to be a proper hedge, and not safe enough to justify the shit yields. If someone retiring just before COVID had gone all in on BND or God forbid TLT, because they heard bonds were safe in a downturn they'd be absolutely fucked. About the only situation where a large bond allocation makes sense to me is in a barbell strategy to offset some form of leveraged equity exposure, usually LEAPS options, and only short duration bonds even in that case.

LordSnarfington

You're right it's two different philosophies but I don't think you understand how I'm capping my risk, or maybe I'm not sure what you're saying either lol. My SGOV position is my options trading money. I never have more exposure than what I have in SGOV. if I take a max loss on every single options trade I have open I could cover it with my sgov position and never touch my long term core holdings. By keeping it in sgov I'm getting additional yield compared to just using cash as collateral. I have to use margin to do this but since you don't pay interest on collateral I am not charged anything for being on margin and I've never had to liquidate sgov even though I'm willing to before I sell my cores.

chuttadi2007

I think the main issue is that you’re mixing two very different mindsets in one portfolio. Your long-term thesis sounds reasonable: core positions, time in the market, buying quality names during dips, etc. But the options side can still quietly blow up the compounding side if the risk is not capped properly. Selling puts, spreads, condors, and PMCCs may feel controlled because the positions are structured, but they can still create a lot of hidden correlation risk when the market moves hard. Using SGOV as collateral is better than using random cash If you want to keep the “gambling” part, I’d separate it very strictly. Something like: 80-90% long-term boring compounding portfolio, 10-20% max for options/speculation, and no cashing out the safe side to save bad trades. Once you start using the long-term bucket as a rescue fund, the strategy becomes one big options account with extra steps. Not saying the strategy can’t work, but I’d judge it by max drawdown and worst-case scenario, not by whether the premiums feel steady most weeks.

CrunchyMage

It doesn't really matter as long as you're getting the risk free rate at a minimum. I personally think just putting it in a brokerage and using SGOV/USFR or money market ETFs is the play. You have full control there and can easily move it to other ETFs if you wish, and nice to setup habit to regularly put in money in brokerage and invest. Only downside is it usually takes 1-3 days to get money out of brokerages, but usually that's not a problem. If you want IMMEDIATE ACCESS rainy day, I think Wealthfront is a great option. It's a checking account that gives you the risk free rate passively. I'm not a fan of the withdrawal restrictions of CDs or savings accounts, so I don't think those are the best play for rainy day imo. You can pretty much get those rates but way more liquid with money market ETFs.

ComprehensiveLime695

Do you mean LQD? If so, it has a higher risk profile than SGOV and can deliver negative returns.

Cloud2987

SGOV as well. It’s exempt from state taxes and HYSA are taxed by state and feds.

LordSnarfington

This is almost exactly my conflict but I am a hyper fixation person but this one has lasted almost a decade now which is far longer than my others. I do think it's basically just paying to stop me from doing something dumb which is a drag I'm willing to take, basically paying for my entertainment. In a perfect situation I see it playing out like; big crash, port is halved or severely down and I even take a big loss on SGOV, as long as I've been investing it's been this decade long bull market so I'm thinking I may not like or even know how to trade in a lengthy bear market. Ideally, I take all I have left and buy the dip massively, keep the auto deposits going while the market recovers and I fixate on a new hobby. This way I catch the beginning of the recovery, historically the best returns, and come back to actively trade on the way back up who knows. One point; I put as much money into my 401k as I can and have a Roth IRA I do DRIP in so this is fun money I can afford to lose.....but would honestly be devastated to see my work gone but I don't actually need the money

Ok-Mulberry-5878

that's kind of a clever self-imposed leash honestly, the SGOV setup is a nice touch since you're getting that yield while it sits there as collateral the part that sticks out to me is you already know you'd be further ahead if you just dumped the 35k into your core picks, so you're basically paying a premium to keep the gambling itch scratched without blowing up your account if it stops you from doing something dumber then maybe it's worth the drag on returns, but eventually you gotta ask if the thrill is worth watching the gap grow between where you are and where you could be

kokanee-fish

I'm closely watching LQID. It's too new to get my money yet, but if it continues working as advertised it will be the new SGOV for me.

Cloud2987

VOO, QQQM, and SGOV… last holding is 5% IBIT. I’m boring

falcongsr

Keep your cash in SGOV you're welcome

Ihave4friends

I sold SGOV and went long MU last week. RIP my money 😢

Playful_Fun_9073

What I do is I turn on margin. I spend 30 percent of the available margin to slowly buy the dips and pullbacks and crashes. I don’t spend the other 70 percent of margin unless the whole market crashes horribly. I keep some money in SGOV in the same account just in case I need to sell it in an emergency like an unlikely margin call. If you’re not comfortable with margin then keep dry powder and buy the volatility. It’s the only way to actually not give a fuck, always be buying. Be fucking careful with margin. You can always just keep depositing and buying shares with that money and not use any more margin the broker offers until you’re out of margin debt with the deposits your using to buy shares and the account value piling up over time. Most can’t really be disciplined with it and they overextend and use too much and they get ransacked by the market or a bad stock pick or bad timing. We get rich buying red, not green. Buy the green too, but the red is where it’s at. Red plus time equals green. As long as you’re in a good asset this is how it works. It doesn’t work for bad investments though.

Ok_Fan7382

You should never have your portfolio in cash, for one—Hold SGOV, or the like, instead as they are short-term bond holdings ETFs. Bonds are for when the market doesn’t rise in 1 to 3 years, which would previously happen on a normal basis, but now that the Fed has its printer, that likely won’t happen again.

No_Paleontologist506

I won’t ever have a bond in Roth. Emergency fund in SGOV. Sell when I have something in g urgent to pay for.

TortugaTurtle47

1/3 in a HYSA and 2/3 in a brokerage account (50% BND and 50% SGOV).

ComprehensiveLime695

Same, SGOV.

No-Sympathy-686

SGOV

norththunder_23

Safe, easy to access, and earns a bit of interest? HYSA- rates I found right now are like 3.44% If you want safe, earns a little more interest, but slightly less accessible? I’d through it in SGOV. Just know it could take a day or two to transfer from your brokerage account to your checking. Personally, for emergency fund, I choose high yield savings account. The money generally keeps pace with inflation so at least that way it’s not rotting away.

BenzosBakedMe

SGOV. Highly liquid. No state tax.

croissant_and_cafe

Hi, you’re in your late 20s. Don’t sweat it. I’m a swing trader. I’m still in and out of stocks every few months. I just bought a position in ANET and LLY, I know it’s insane, does particular buys may not be the best bet. But I also didn’t hesitate to buy Micron two months ago and Sandisk three months ago. Follow a few analysts whose approach you understand and agree with, continue to get in when you think it’s still a bull market, and that the stock is part of the upswing. Stop whining and get in in smalls percentages where it works with your wrist profile. I continue to hold 30% in SGOV to buy dips,

2Hosslovescash

If you can’t handle swings, SGOV is your friend. It you have conviction, utilize cash to buy the dips and stay the course.

Vast-Worry-4834

1 month pay in Savings. 6 months in in SGOV.

Weary_Anybody3643

I personally don't mess with bonds as a part of my investment portfolio SGOV does have a role in my finances it's just separate for my investments it's a savings account My actual portfolio is 100% equities but also I'm 24 years old so retirement is well beyond the realm of possibility for a great many years so I figure I should maximize return I do have some more defensive equities not all high aggressive growth so there is a little bit of diversification on that theater

old_Spivey

SGOV

Working_Knee6373

Cash management account, buy SGOV.

Undefined1_4

Not really. It ticks up all quarter(or month), but in anything other than T-bills (SGOV), market volatility is too noisy to see the dividend accruing.

SomePolack

Still got $30k in SGOV what should I do with it

Icy-Neighborhood6650

SGOV

ALLCAPITAL

SGOV via a robinhood acct is an option. Don’t gamble on stocks and options etc. if you only have 3yrs. Any money needed within 3-5yrs should be in something safe earning the highest guaranteed rate of interest you can without taking risk to your principal. Edit: Not shilling for RH. You can pick any brokerage provider or check your local banks. Also, some online banking options to compare if you want.

NefariousnessOdd862

SGOV… best Cash/Bond fund imo ! Ultra-short bonds only (0-3 months), super safe, super liquid (essentially Cash)

Negrom

Gold card is 3% cashback on everything and is covered by their normal Gold fee as well. Pretty insane cashback considering you can cover the majority of the fee by taking the $1k free margin and throwing it in $SGOV.

InvestingNerd2020

The best short-term gains at your age is emergency savings from either a High Yield Savings Account (HYSA) or Treasury funds (MMF or Treasury ETF). A) Stay with Fidelity and look into SGOV (Treasury ETF) or FDLXX. The Federal reserve is keeping the money supply tight for banks, so interest rates will be high for the remaining 2026 year. B) Semi-conductor industry is doing great and expected to stay that way until 2028. SMH ETF is an excellent choice after building up 3 months of emergency savings with SGOV or FDLXX.

ShellfishJelloFarts

!p SGOV

adlopez

Government bond fund that pay out dividends every month. If you have 20k in there, you’ll get $58-65/month in dividends. You can use it as a “cash sweep” where your cash just collects dividends until you’re ready to sell SGOV into cold hard cash, and deploy into other stocks. That .25 swing is somewhat meaningless.

Emotional-Breath-838

Double! Double the stock price growth. Hang on while I compare it to SGOV... NVDA wins by a whisker!

ocean_rep

SGOV is just a fund tracking government Tbills

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%.