SGOV
iShares® 0-3 Month Treasury Bond ETF
Mentions (24Hr)
12.50% Today
Reddit Posts
SGOV and TBIL, are there safe to invest as an alternative to Savings Accounts to preserve cash value and earn interest?
Offsetting Previous Losses While Continuing to Invest for the Future
Should I invest in treasury funds if no state income tax?
If I'm bullish on the future what's the point in holding VOO? Shouldn't I just get TQQQ and hold long term?
SGOV a good place to hold cash for liquidity?
Are SGOV or USFR still viable short term investing options for growing down payment?
Why do SGOV charts look like this and could the pattern be exploited?
Why does the graph of some bonds look like a sawtooth wave while others don't?
Treasury bills Vs. Money market Vs. CD’s Vs. SGOV Vs. HYSA Vs. Other alternatives. What’s the best way to park my short term cash?
Is it wise to use SGOV almost like a savings account?
SPX Gain. $SGOV & Rest time. Not trying to get caught in a technical bounce.
How to use T Bill ETFs as cash alternative inflation hedges? (SGOV, TFLO, USFR, etc.)
Taking a break from degening. Small PP gain. Hiding in $SGOV for the next 6 months until I can get my head back in the game
Why are the yields of NY muni money market funds so volatile?
What prevents dividend arbitrage with MFs like VMFXX?
Am I losing money to taxes in HYSA instead of treasury ETF/fund?
Beating directly holding S&P 500 by selling deep ITM puts?
Help me find a high yield ETF that I can sell/buy quickly
Parking Cash (Money Markets, Treasury Bills, Bond Funds, ETFs, etc.)
I'm going to break even soon, should i sell part of VTI and put it into SGOV?
Can someone explain the price move of short-term bond ETFs?
I am new to recurring investments. If I want to buy SGOV, does it matter what date I do it on?
Can buying/selling SGOV and USFR trigger a wash sale?
How do I find out the yield on $SGOV?
Options + Bonds ; brilliant original idea, or... boondoggle from hell?
Best Investment Without Actually Buying Treasuries? Am I wrong?
Are there any downsides to my plan to try to turn SGOV dividends into capital gains?
How will floating-rate treasury funds (USFR, TFLO) fare when interest rates start to fall?
Is there a way to make 4-5% with minimal risk without receiving dividends/interest? "Accumulating" SGOV?
If someone wants no regular pay outs but wants to avoid getting screwed by inflation with minimal risk, what do they do?
What is safer now for cash? Keep in Bank account (less than $250K) or T-Bills / SGOV / BIL?
How do fixed income instruments behave in case of a government shutdown?
Can someone help me understand the pros/cons of a bond ETF like SGOV in comparison to buying a treasury directly?
SGOV not reinvesting interest at a good price... Am I missing out on returns?
Are returns from treasury ETFs like SGOV and USFR state tax exempt just like regular treasuries ?
Let's talk about short-term debt securities...
What are some safe overnight bonds / ETFs that I can exit any day easily?
What are the different options for taking advantage of high interest rates?
I want a T-Bill. Are $VUSSX and $SGOV better options?
Table of Money Market Funds/ETF's or Ultra Short Term Funds/ETF's available on Merrill Edge
State Tax Exemptions on US Government Interest for Tax Return
Government Bond ETF - Taxes on Distributions?
T-bills: 3.29% apr for 3 month & is going up with rate hikes
Better Option than SGOV for collecting yield on leftover brokerage funds with near 0 rate risk?
Mentions
I keep my emergency fund in SGOV and all other cash is in investments. But I make way less than you so I don't keep that much for emergency fund. It's at about 17k.
Are you saying that you have a 10 year horizon before buying a house? I wouldn't use SGOV or VBIL. Those are short duration funds. If you want to just have the risk free rate - you may want to look at a longer duration treasury fund. It also depends on whether you believe if interest rates will go down or not. Alternatively - with a 10 year horizon - you probably could put some portion into higher credit risk products if you want the relative lower risk of bond investments vs equity investments. You could look at corporate debt. Something like target-maturity corporate bond funds from SSgA, Invesco or Blackrock may generate higher yield - depends also on the state that you live treasuries are state tax exempt.
I’m a 26M and I want to start saving for a down payment for a house. I max out my 401k, HSA, and Roth IRA each year and historically have put the rest of my savings in a taxable brokerage account investing ETFS. I already have an emergency fund sitting in SGOV and VBIL. I’m my time horizon is 10 years, should I just put my cash for a down payment fully into SGOV:VBIL or split it between the treasury bill etfs and a total market index fund such as VTI? Thank you!
That's the plan. I officially retired in October so I haven't had to sell SGOV yet.
$50K sitting in SGOV. I take the divvy and reinvest in VOO or gold every month. I've been funding my IRA with it the last few years the first trading day of the year.
While working, I had a few months worth of bills in cash. In retirement, I have an additional one year's worth in SGOV. As a percent of liquid assets, it was 0.5% to 4%.
SGOV and USFR and money market fund are essentially equivalent so I didn’t have a need or reason for both. I have a Traditional IRA at Schwab so that’s where my SWAGX is. My Roth is all SWTSX and SWISX.
Set your 401k to sp500, lowest internal cost option. And max that out. Get as much in the ere as early as possible. Open a Fidelity account and setup an auto weekly amount of either QQQM or VOO, doesn’t matter. And then work to increase whatever your weekly is over time. The hard part is: only sell when you have something urgent to pay for. And don’t use HYSA, use SGOV in your Fidelity account. Best of luck!!
True, there are a few. I like NKX at 7% yield but its price is not as stable as SGOV, of course.
>What would you say is the benefit of a covered call ETF then? The benefit is great if you are 65 and retired and need income every month. If you have spent 35 years building up a great portfolio of $1million (or whatever number applies to your situation) and you can coast and enjoy retirement and not check the stock market every day. Its a fine choice. But if you are 35 and investing $2000 a month - you need growth. (Not some silly income ETf designed for old people) Too many people see something good and think it's good for them - but sometimes what's good for others, might not be good for me. A very big part of investing is about realizing where you are in your journey, and does this process or this product or even this allocation fit your need ? I'm older than you but still 10-15 years from retirement (maybe more or less if my stock picks go well or poorly) (Im a baseball guy - love baseball so i modeled my portfolio around baseball how their organizations are setup if you see that below) I have several different "teams" - all with different purposes. 1 taxable brokerage - it holds my emergency fund (SPAXX and BOXX and SGOV) this helps with expenses and if I need to upgrade my home field I am ready. and it hold ETFs.(Not exactly part of my emergency fund but in that account - I only buy and hold ETFs. Mostly VOO + VTI + some international funds - but i Never sell.) That's growing money that i could access if I need it. But I don't plan to use it until later.... when I really, really need it.(Hopefully retirement when my income is a lot lower so tax burden will be less) 2 Roth IRA - its all individual stocks growth focused (i buy and swing trade in this account holding anywhere from 3 days to a year if the stock does well) + I call this the major league roster. Its my big holdings. I have 9 starters (biggest positions) all of those have stop losses set to lock in profits cause they already proved to be big winners. I also have a bunch of reserves(the bench) who are growing into positions to become a starter if one of those main 9 ever drops more than my rules allow. 3 Traditional IRA - a mix of some ETF & some individual stocks. ( I jokingly call it my minor leagues) - any stock on my watch list - i sell a share of an ETF and buy some shares of some watch list stocks. But in this account I keep a few shares of anything I think might eventually become a major league starter someday. 4 Rollover IRA from an old employer (its all ETFs - but its 25 different ETFs mostly momentum and sector ETFs i rebalance every week takes 10-15 minutes and it beat sp500 by 10% last year) - I keep track of all this shit in an excel document that automatically downloads the prices and price history as soon as I open the file. I am sure it sounds super complicated but I have major ADHD and I love it. Keeps me busy when my wife goes to bed early I can study all this shit for an hour or two and keep my mind going
This is super duper helpful!!! SWAGX is one that I hadn’t looked up, I think you mentioned this one before, but since they are bonds it makes sense to have them! So you have 2 ETFs (national and international) and a bond in IRA. Then a national and international ETF in the brokerage as well as 1 money market fund and the short term floating treasury. Curious why you didn’t also get SGOV? I thought about the target date fund, but I hears it was not as customizable so thought i’d try to go the manual route?
SGOV and USFR are ETFs that invest in Treasuries. You can find a list of Schwab’s money market funds here: https://www.schwab.com/money-market-funds These various cash options are all essentially equivalent.
Regarding International…. It diversifies you away from just the US. The US market has outperformed the global market for a while but no idea if that will continue. Plenty of smart people say US only is fine because the biggest US companies are international businesses. Other people say that ignores large swaths of the global economy. I have no idea what the future holds. Personally I the I’m about 30% of my stocks allocated to International. Last year was the first time in a long time International outperformed the US. SWISX is fine in either in a taxable or tax sheltered account. It will tend to pay a bit more dividend then SWTSX but still pretty tax efficient. If you are holding in taxable accounts I’d favor the ETF versions. SCHB is the ETF equivalent to SWTSX, SCHF is the ETF equivalent to SWISX. SWVXX is fine, TBILL ETFs like SGOV or FRN ETFs like USFR, or TBills are all fine places for cash. Personally I found directly buying TBills to be inconvenient so stopped and just use the ETFs and Money Markets now.
where did you see the portfolio? How do I find a treasury fund or know what to search for? I believe the SGOV and USFR are treasury bills?? Any you recommend? And would this be in the taxable account to use as liquid money?
It’s SWTSX, assuming you mean Schwab’s Total Market fund. If you want International exposure their International fund is SWISX. You don’t need a separate account at Fidelity unless you want it for some other purpose. Their sweep options are better than what you get at Schwab for uninvested cash but that’s only an issue if you leave the cash sitting in your Schwab account. Investing, like you would be doing by buying SWVXX, SGOV or USFR, solves that problem. The downside to Schwab is having to do it manually whereas Fidelity automates (sweeps) the cash to and from their SPAXX money market for you. The manual options actually yield a bit more so are better as long as you are ok with the manual step. Personally, I don’t see a reason to overweight dividend stocks, all the stocks in SCHD are already in SWTSX and SCHB. If you do decide to hold SCHD consider holding it in your IRA to minimize the tax drag.
I am completely new to investing and I’ve been trying to read as much as possible and ask questions. Please let me know your thoughts on this game plan and if there is anything you would change, take out or add? This is just me going based off notes. I am 100% open to suggestions. Step 1: Contribute 4% employer match to 401k on Fidelity. Step 2: Backdoor Roth IRA - contribute $7,500 and invest in SWTSK (any other mutual fund or ETF I should invest in IRA?) Step 3: Invest in SCHB or SCHX in Taxable account Step 4: Invest in SGOV, USFR, and SWVXX in Taxable account - All for liquid funds Step 5: (Consider investing in SCHD in taxable account?) - Dividend focused ETF. Step 6: (Consider a Sweep account at Fidelity which offers a higher % return in a MMA, not sure why?) Step 7: Is SWPPX and/or SWTSX necessary, and if so, which account and why? Step 8: What about international ETFs and/or Bonds, should I add any to my taxable account and if so which ones? Step 9: Consider QQQ in a taxable account (but would this be redundant if I already will have SCHX or SCHB?)
Also, is the QQQ necessary if I choose to invest in SCHX or SCHB which are both broader? I am not sure. Here is my game plan: Please let me know your thoughts and if there is anything you would change, take out or add? This is just me going based off notes from here. I am 100% to suggestions. Step 1: Contribute 4% employer match to 401k on Fidelity. Step 2: Backdoor Roth IRA - contribute $7,500 and invest in SWTSK (any other mutual fund or ETF I should invest in IRA?) Step 3: Invest in SCHB or SCHX in Taxable account Step 4: Invest in SGOV, USFR, and SWVXX in Taxable account - All for liquid funds Step 5: (Consider investing in SCHD in taxable account?) - Dividend focused ETF. Step 6: (Consider a Sweep account at Fidelity which offers a higher % return in a MMA, not sure why?) Step 7: Is SWPPX and/or SWTSX necessary, and if so, which account and why? Step 8: What about international ETFs and/or Bonds, should I add any to my taxable account and if so which ones?
Ok gotcha! To clarify, you want a short duration basically?! Ok this is my plan so far. Please let me know your thoughts and if there is anything you would change, take out or add? This is just me going based off notes from here. I am 100% to suggestions. Step 1: Contribute 4% employer match to 401k on Fidelity. Step 2: Backdoor Roth IRA - contribute $7,500 and invest in SWTSK (any other mutual fund or ETF I should invest in IRA?) Step 3: Invest in SCHB or SCHX in Taxable account Step 4: Invest in SGOV, USFR, and SWVXX in Taxable account - All for liquid funds Step 5: (Consider investing in SCHD in taxable account?) - Dividend focused ETF. Step 6: (Consider a Sweep account at Fidelity which offers a higher % return in a MMA, not sure why?)
>I’m playing with around 2 grand and I invest 10 percent of every check into the account which is a HYSA HYSA is usually referring to a high yield savings account, which stocks are not… (though something like SGOV can function that way) I’d stick to just VTI/VXUS unless you’re looking for specific exposure not covered there (like precious metals)
Park it in SGOV while you decide. No state tax in CA on its dividends.
Open a Fidelity account. Put it in SGOV. Then find a trustworthy pro. It’s really hard to learn with 100k. You’re misunderstanding the quote. Find someone to explain it to you.
I have some SGOV, some BIL, a few bond funds. I probably leave more in cash than I should, but I have other accounts (401k, etc) that are fully invested, so I like some true liquidity to pursue opportunities as they occur. I probably am not optimizing my returns, but I'm ok with my performance overall.
Thanks for your input, it's great to hear that TT has been good to you and makes me lean toward going ahead and moving some funds there. Your point about no perfect broker is timely. I've been reading a lot of opinions about them on Reddit and there doesn't seem to be a consensus anywhere. They all have different strengths and each has at least one drawback. What do you use as a core cash position at TT? I've heard about SGOV or similar funds.
Ah thank you! When we say effective duration of 0.1 or 0.2 years what does that mean exactly, what is an effective duration? Thank you for linking me to this boggle heads write up, that is super useful! I started reading though it and it sound like a floating rate treasury is super useful and he recommends getting one for sure, I’m still learning about this. Yea the reason I ask about short term ETF’s is to see if there are others comparable with varying returns. Like for instance there are diffeent 7 days MMF with varying returns and I wasn’t sure if it would be the case with short term ETFs like SGOV. Basically I wanted to know which list SGOV came from. But if they are all similar, I can certainly get SGOV and one of the floating treasuries like USFR and even include SWVXX as the MMF. I need to write all this down! It’s starting to sound like alphabet soup. If you don’t mind me messaging you to keep in touch that be great!
I'm moving from Webull to fidelity myself https://www.fidelity.com/spend-save/fidelity-cash-management-account/overview. A lot of my cash is in SGOV, which pays 4.1% but is not quite as liquid as Fidelity's SPAXX
>[OP thinks SGOV is paying 5%](https://media1.tenor.com/m/rpv72Z5PGCYAAAAC/joks.gif) >in 2026 Yeah. I've been moving out the yield curve to SHY/IEF and even those only pay around 3.5-3.9%. But hey... whatever they want to believe.
> Super helpful info! MMFs yielding less than SWVXX, isn’t SWVXX already a MMF? Yes SWVXX is a MMF. Different MMF's have different yields. > It’s specifically a 7 day yield fund. I don't know what you mean by this. '7 day yield' is how the yield is reported on MMFs. Its what annualized return of the fund over the previous 7 days. You don't get that yield every 7 days. >When you say 0-3 month, does that mean it matures in 3 months or expires in 3 months? When I looked up SGOV, it had no maturity from my understanding, but I could totally be wrong! SGOV doesn't mature. That Treasuries it holds matures and the proceeds are then invested in new Treasuries. Its essentially a bond ladder with an effective duration of 0.1 years. >What the difference between Floating Rate Treasuries and Government bonds? A floating rate treasury is a type of Government Bond. Its a longer term bond but the interest rate floats so it doesn't have the same interest rate risk as longer term treasuries. USFR's effective duration is 0.2 years. >I also, tried looking up where to find a list of short term government bonds on Shwab but couldn’t find a list? Their customer service didn’t know either so i’m wondering how do we find the different options out there other than SGOV that does something similar to keep funds liquid with a return. Not sure I follow, are you looking for other short term bond ETFs? How many variations of Vanilla ice cream do you need? Here are some I'm aware of: SGOV, BIL, VBIL, TBIL, JPST, ICSH, VUSB, USFR, TFLO. The only ones I have any first hand experience with is SGOV, USFR and TFLO Here is an oldie but goodie: [https://www.reddit.com/r/Bogleheads/comments/11prp0b/hysa\_mmf\_cds\_tbills\_searching\_for\_the\_best\_return/?utm\_source=share&utm\_medium=web3x&utm\_name=web3xcss&utm\_term=1&utm\_content=share\_button](https://www.reddit.com/r/Bogleheads/comments/11prp0b/hysa_mmf_cds_tbills_searching_for_the_best_return/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button)
Super helpful info! MMFs yielding less than SWVXX, isn’t SWVXX already a MMF? It’s specifically a 7 day yield fund. When you say 0-3 month, does that mean it matures in 3 months or expires in 3 months? When I looked up SGOV, it had no maturity from my understanding, but I could totally be wrong! What the difference between Floating Rate Treasuries and Government bonds? I also, tried looking up where to find a list of short term government bonds on Shwab but couldn’t find a list? Their customer service didn’t know either so i’m wondering how do we find the different options out there other than SGOV that does something similar to keep funds liquid with a return. For sure looking for convenience too!
Super helpful info! MMFs yielding less than SWVXX, isn’t SWVXX already a MMF? It’s specifically a 7 day yield fund. When you say 0-3 month, does that mean it matures in 3 months or expires in 3 months? When I looked up SGOV, it had no maturity from my understanding, but I could totally be wrong! What the difference between Floating Rate Treasuries and Government bonds? I also, tried looking up where to find a list of short term government bonds on Shwab but couldn’t find a list? Their customer service didn’t know either so i’m wondering how do we find the different options out there other than SGOV that does something similar to keep funds liquid with a return. For sure looking for convenience too!
Yeah don’t let it sit at a bank lol. Put it in SGOV or other high yield bonds
But by no means am I an expert. Not even close to it. But I understand what stocks and mutual funds and ETFs are, and I understand what the S&P 500 is. I'm just trying to get an example of how stashing money in an SGOV would compare to HYSA or VOO, from someone's real life experience
So how does this compare to VOO, which I assume I can sell at any time to get my cash. Is SGOV better overall because of the tax advantages?
Short term treasures. Pays dividends monthly at 4%ish. Fully liquid, can sell at any point. In most states you won't pay capital gains. Google is your friend here for more info but I keep my entire emergency/cash reserve in SGOV
you have to be willing to roll with the swings, or else maybe just buy SGOV and call it a day
Systemic covered calls strategies always underperform their raw equity equivalent (QQQ). Using them to dca into bitcoin is no different than holding 70/30 QQQ/Cash and just takingthat 10% yield by selling shares and putting it into bitcoin. Theres actually only downside involved. Youre paying 35 bps expense ratio instead of 15 for QQQM and 9 for SGOV, so youre at least 0.2% CAGR worse off the bat. Secondly, selling call options involves bid ask spreads. The rise of covered call "i come" ETFs have created a measurable distortion in the near term options marketplace. An oversupply from fund managers demanding more "yield" products flood the market, forcing managers to either accept worse NAV performance (offer lower and lower strike prices for the same premium) or accept lower premium to run the same relative strike target on the calls. Its simply supply and demand. So much supply of calls means people looking to buy them have the pick they want, and they (me) are getting better deals on levering up long on equities because we are buying cheap calls from JPMorgan and granite shares and all these dogshit scam "income" etf providers.
This makes zero sense. The covered call yield isnt coming out of thin air. Youre selling efficiently priced future gains for cash today, effectively decreasing your exposure to plain QQQ. You can get almost identical results with a portfolio of 70/30 QQQ/SGOV. Youre taking an equity allocation and then reducing your exposure for cash to invest in bitcoin? Just buy bitcoin and QQQ then. Or, just buy QQQ and sell small bits periodically to buy bitcoin. Thats what youre already doing but it would have higher expected returns since youd have a higher equity allocation.
At your age you can skip them. If you want emergency fund or large known expenses just use SGOV in a taxable account. It’s easier than hopping banks for HYSA. Use a Fidelity account to setup weekly auto buy of VOO. Sell only when you have an urgent expense to pay for. That is the foundation of everything. Set up auto. Don’t rely on self discipline. Work to increase that auto, don’t panic sell. That’s it. That’s really all anyone “needs to know”. There is a bunch more you will learn along the way. Roth. Budgeting. But it all is after the spend less, invest more, don’t panic sell basics. Best of luck!!
Does your broker have a cash or money management account that earns interest similarly to bank? Can you just buy SGOV? This would give you options to DCA your $7500 into growth investments rather than timing. Then when you think there’s an opportunity buy a chunk.
There's realms of information about the three fund strategy that have already been written. *I was also thinking of getting a money market fund that is the 7 day yield like SWVXX or getting a ultra short term bond like Us treasury - SGOV or both to park my funds before they are invested. What are your thoughts on this?* How much money are you investing that this kind of micro optimization matters? *Or what about maxing the Roth IRA before investing in funds?* You're confusing tax treatment with investment strategy here. Invest in index funds in your IRA.
I like this strategy! Is there one ETF that is encompassing of both US and international? What is the more common US and International ones on Schwab? When you say bonds do you refer to money market funds or another type? What kind of bonds or which ones in particular and why? I was also thinking of getting a money market fund that is the 7 day yield like SWVXX or getting a ultra short term bond like Us treasury - SGOV or both to park my funds before they are invested. What are your thoughts on this? Or what about maxing the Roth IRA before investing in funds?
Made one jokey comment. OP: "Thoroughly convinced, now let me tell you how I think you think you're Michael Burry" I'm not shorting the market--I actually don't mess with options at all because that's how you get Robinhood coming over to repossess your home. At best, I buy gold or SGOV when I think the market's being a little too irrational, then get back in when I think the market's calmed down a bit. I just think the economy itself is kinda weak right now--inflation still hasn't really let up while the job market continues to stagnate--and a lot of AI companies are writing a lot of checks they're gonna have trouble cashing. Especially, as I keep pointing out here, OpenAI, who keeps making investment promises they literally cannot keep in comparison to what we know of their revenue. The downside risk of this, at least, isn't massive. AI isn't employing a ton of people (it's actually trying to do the opposite) and most of any pop or slow deflation of the bubble is gonna come off the backs of Mag-7 companies who don't really need AI to keep growing. I'm more worried, frankly, about the real economy than the stock market--you know, jobs and wages and such. But to pretend 2026 is a sure bet is ridiculous.
When I last checked Schwab's Treasury MMFs were yielding less than SWVXX. I'd save state taxes with SNSXX but the tax savings didn't make up the yield difference. SGOV and USFR are ETFs that invest in ultra short term government bonds. SGOV invests in 0-3 month Treasury Bonds and USFR invests in Floating Rate US Treasuries. There are several other ETFs that invest in ultra short term Gov't bonds that are equivalent. I actually have a bit of SWVXX but most of my uninvested cash is in USFR. I haven't checked recently but when I last checked it was yielding slightly more then SWVXX and is state income tax free. The key is they invest in ultra short term securities so you don't have the same interest rate risk you have when investing in longer term bonds. A Money Market Fund keeps a constant share price of $1, orders execute every night and you get paid interest monthly. A Treasury ETF trades like a stock. It has the same limitations of other ETFs at Schwab, no Fractional shares. USFR's share price hovers around $50 and SGOV around $100 so if your dealing with small amounts of cash that can be a pain. If you look at a price graph you'll see they make a nice sawtooth pattern. That's because they slowly increase in price throughout the month as they accumulate interest then drop when the interest is distributed. All of these are fine options and are easy to switch between. You mentioned iBonds and TIPS. You can only buy iBonds directly at Treasury Direct. You can buy TIPS at Schwab, either directly, via a Mutual Fund (SWRSX), or via numerous ETFs (SCHP, TIP, etc). Schwab has other options for cash as well, T-Bills, CDs, etc.... I dabbled with T-Bills for a bit but it was more effort then it was worth and just started buying the ETFs instead. The convenience was worth the minor cost to me.
Interesting! If you are using Schwab, I am on the research tab, under Money Market Funds and I only see the SWVXX under “Prime Money Funds”, where is the USFR and SGOV located? I clicked on ETFs and typed SGOV, and it says it’s an “ultrashort bond”, Does that mean it’s a bond or ETF? Is this like an iBond or TIPS? Do you get a return on these like the Money Market Funds? Is there a reason you prefer to buy the short term treasury ETFs in addition to the SWVXX? I am curious why you don’t choose Government and Trrasury Money Funds like SNVXX, SNOXX, SNSXX, or the money market ETF like SGVT? All of these have a 7 day yield.
Yes, in my taxable brokerage I use both SWVXX and short term treasury ETFs like USFR and SGOV. I don’t use uninvested money in my IRAs but if I did I’d certainly want it gaining something. You can usually put in the order to sell the mutual fund or ETF the same time you put in the buy order for your investment and everything should settle at the same time. You might need to enable margin in your account but I’m not sure.
Step 1: Structure your life so that you have extra money each month to invest.... Live frugally if necessary. Never put a lot of money into a depreciating asset like a car. Drive a cheap but reliable car. Scrutinize your expenses and live frugally. Step 2: Decide if home ownership is a practical way to invest, or if you want to rent and invest in stock market or other types of investment. Home ownership is a reasonable form of investment if you know where you want to live for a long time. Home ownership is a terrible form of investment if you DONT foresee staying in the same place for a long time. Rent-to-price ratio is important factor for this decision too... If home ownership is a good fit, that can be the most logical first type of investment. Step 3: Decide what class of investments are sensible for you... Do you want hands-on investment? (rental property where you do the maintenance and collect the rent?) Shared business where you work at the business as an equity partner? Do you have hobbies or interests that make you especially knowledgeable about a particular type of asset or collectilbe? If so, you can form investment strategy around that. Do you want hands-off investment? (i.e. busy life, just need a place to park and grow cash?) OK stocks, bonds, (and sometimes commodities) are the norm. Step 4: If you want to invest in stocks and bonds or maybe commodities, the next step is to open a brokerage account. An online brokerage, one of the easy to access inexpensive ones... schwab, etrade, fidelity, Merrill.. whatever they are all OK. Step 5: Decide your risk tolerance.... Want fast growth and can accept losing it? OK, Stocks. Want to prioritize low risk and can accept low growth? OK, bonds. Before you do anything sophisticated, be aware that there are super duper easy exchange traded funds that cover stocks and bonds and commodities. VOO for stocks. SGOV for short term bonds. You can do well by parking your money in some combination of VOO and SGOV while you research and learn more. Please forgive my Fartcoin post above... that is also an alternate strategy for some... but not one I recommend.
You sound LOST. Only in an IRA (Cash ) account do you need 50k for one short Put on Telsa. In a Margin Account APPROVED FOR SELLING OPTIONS, you need 20% of the OTM strike , a lot less on lower vol stocks. So a 20delta Put on Telsa is 9k-10k , but only 7k for say Msft. My answer is always the same, get a Margin Account (Schwab , Tasty, IB platform not for me) , you are pissing away your leverage in a Cash Account. If you have the money (25k but 60k better) to trade options (90% of those responding only have 10k or less). You must get approved for Selling Options, this can be hard at many brokers. Tasty is the only one that gives it to everyone. If you Sell a Put without being approved, then it is a CSP, and none of this applies. You can Sell Puts , Calls or Both on Amzn, Appl,Googl, Bidu, Nvda, for 2k-4k Buying Power. If you get Assigned take the loss close out the stock and move on, or ROLL Forward in Time for a CREDIT. Also you can BUY SGOV , get 70% Buying Power on that and interest every month. If you can afford to tie up part of that SGOV cash for 3 months at a time you can get over 90% Face with Treasuries. Selling Treasuries before maturity could cost you a "haircut" , Sgov does not suffer from that. Key:: Always keep 100% of the BP as backup for a Down Move, so if the BP is 10k, keep another 10k as backup. Follow Tasty mechanics , Sell at 45dte, close or roll by 21dte, have a profit target in 50% area. Do not Sell 40 Delta Puts... I rarely do over 20delta, 30delta is ok but you will get tested often. How can this be , everybody on Reddit is wheeling! Try these Tasty vids to see what most Reddit users do not know or worse understand. [https://ontt.tv/3jAf4Ba](https://ontt.tv/3jAf4Ba) Buying Power Factors Oct 28, 2020 [https://www.tastylive.com/shows/tasty-extras/episodes/a-refresher-on-bpr-06-29-2020](https://www.tastylive.com/shows/tasty-extras/episodes/a-refresher-on-bpr-06-29-2020) [https://ontt.tv/2CLbOjn](https://ontt.tv/2CLbOjn) What Affects Buying Power? Nov 14, 2019 [https://ontt.tv/JeGVN](https://ontt.tv/JeGVN) Short Puts vs Covered Calls vs Poor Mans Covered Call Jul 9,2024
Are you willing to risk losing $60k in order to gain $30k? Because that's what you are suggesting. Don't touch your retirement funds in ETFs. You can put everything else in a stable, interest earning fund such as SGOV to ensure you maintain your capital and grow it a bit. Then when the time comes, use that to help your family member. If you try to almost double that in 6 months to get an extra $40k, there's a stronger chance you lose money. Any plan to increase at that rate has a high loss probably and should be taken extremely cautiously and only with excess money, not essential funds. Another option with slightly higher potential yield but relatively safe is IGSB. It's investment grade short term bonds, slightly higher interest but also has potential to grow in value as interest rates decrease while maintaining minimal drawdown risk (only lost 1% of value during April drawdown compared to 4%+ in other corporate funds). IGSB has returned over 7% in the past year between interest and growth. It may be slower growing this year, but may be the best option to safely increase your account value by a couple grand in the next 6 months. If you put $60k in SGOV or IGSB for 6 months, you'll likely return $1k-$3k additional in that time. Then you can pull out $30k for the procedure and reallocate the remaining funds as you prefer.
OTM calls are a fantastic way to lose money. They will bleed extremely quickly with even a moderate pullback. It sounds like you’re revenge trading to try to make back what you lost quickly, which is a perfect recipe for losing the rest of it. If I were you I’d close out your positions and put it in SGOV or VOO. Then walk away for a while. Once you’re out of the “get it all back” mindset you can start to build a sustainable strategy to grow your account. There’s no quick way to get it back that isn’t gambling. You can get back to where you were eventually by being calm, rational, patient, and having a plan.
SCHD is built to appreciate as well tho, shooting for annual returns similar to S&P with combination dividend/APP., whereas SGOV will not appreciate in value overtime. Similarily JEPI & JEPQ pay a roughly 7-12% div. With a mixed bag of equites also shooting for S&P style returns. I’m a big income generation guy so anyone who wants shoot me a DM and I’ll screenshot my portfolio of dividend ETFs for ya.
SGOV is an actual ETF that includes investments in short term US treasuries bills, whereas SPAXX l FZCXX are government bills/securities backed money market funds. You can easily use the latter too to park otherwise uninvested cash at a slightly higher rate than most HYSA's and pull from them to buy shares of actual stocks/ETFs whenever, of or shift and back into say a checking account if needed very easily.
SGOV is an actual ETF that includes investments in short term US treasuries bills, whereas SPAXX l FZCXX are government bills/securities backed money market funds. You can easily use the latter too to park otherwise uninvested cash at a slightly higher rate than most HYSA's and pull from them to buy shares of actual stocks/ETFs whenever, of or shift and back into say a checking account if needed very easily.
Holding 3 companies is insane you should definitely buy VOO. You should start by putting 3-6 months expenses in a HYSA (or the brokerage in SGOV). After that buy some amount of VOO automatically every paycheck and save some amount for the house in HYSA/SGOV.
what are all these acronyms for? What is SGOV for and purpose?
SGOV is fine if its your emergency fund or down payment money You are deliberately sacrificing upside in exchange for security the money will be there when you need it
>For cash equivalent either use their default money market or go a step further with SGOV I prefer FZCXX over SPAXX (lower fee and slightly higher returns) but you need $100k initial investment to gain access.
Just open a Fidelity account and buy VOO on an auto weekly basis. For cash equivalent either use their default money market or go a step further with SGOV. Never rely on self discipline, buy auto. Sell only when there is an urgent expense to pay for. Schwab doesn’t do fractionals for ETF’s as I understand. Some others just do stocks. It’s just easier to use Fidelity. They do both. You will learn as you go. Best of luck.
Teach them simple VOO and chill. SGOV for emergency fund when they are older. Teach them to DCA into VOO and only sell when they have something urgent to pay for. If you teach this young, they will never have to worry about money. They will get it.
Not great, about 11% because I had some Amazon and SGOV. Turns out I should have sold everything and bought VTI early in the year, but oh well, I’m not always going to be perfect every year.
VOO and VTI are *not* "low risk" especially over a short time frame. By all means stick with your brokerage, but you can use something like SGOV as a quasi-HYSA.
You can keep cash equivalents in your Schwab brokerage and get equal or better interest than a HYSA. Either buy a money market fund like SWVXX or a short term treasury ETF like SGOV or USFR.
> Since it’s not SGOV/USFR/TFLO, you will have to pay state and local taxes on the interest Schwab has SNSXX which only buys T Bills etc, no agency paper or repos or anything like that. I haven't yet received a 1099 for it but I assume the year end info will show that 99% (more or less) will be free of state taxes. https://www.schwabassetmanagement.com/products/snsxx
I’m a conservative investor. My core portfolio is 40% SGOV and 40% JEPI. I also have 5% in FFDIX and 15% in BIL. BIL functions as my cash reserve if markets are down at the end of the month, I use it to top off JEPI and FFDIX back to their starting dollar amounts. Overall, it works well. Performance is similar to a high-yield savings account, roughly around 6%. Not very exciting and that’s exactly how I like it. Recently, I’ve been dabbling in penny stocks and small caps for day trading. Nothing crazy, about $200. Last month, though, I turned that $200 into $700, so I moved the extra $500 into FFDIX. As someone commented in this thread, I can only imagine the anxiety of trading with much larger amounts. I honestly don’t think I could handle it 😂 but at a small scale, I am having fun. I came across this thread and decided to join Reddit. I don’t have any other social media accounts. Looking forward to having some fun here and maybe even breaking even on those “fun” trades.
Yes, you could buy $2,000 worth of VOO and $1,000 worth of SGOV
This may be a dumb question because I’ve never used margin, but in that case does the 2k of your own money also need to be invested in SGOV or can you invest the 1k margin in sgov and have your own in stocks
The short of it, SoFi is planning on paywalling benefits that used to come free when direct deposit is used. Some of these benefits include the 1% match on Taxable investing and 2% on IRAs. It's going to be $10/mo starting in April. I'm not happy with this change but whatever, SoFi is a business. Personally I'm going to take advantage until it happens then switch to RH when I start my Roth deposits again. I'm still using SoFi as a bank but most of my money is goes to investing so they are losing my business in that sense. The benefit of RH Gold's margin is that the first $1000 is free to use. Normally margin has interest fees you owe on it. This means you could just buy something safe like SGOV and use the dividends to help pay most of the Gold fee. I'm planning on using it with what I normally buy for my Roth (VTI, VYMI, SPMO) so ideally I should be getting steady gains each year from the grand without taking too much risk.
Check your broker and see if they have a money market mutual fund where you can park cash (both Schwab and Fidelity do this), that can be used as collateral/cash equity for when you sell covered puts (cash secured puts). You can also set this to be marginable (default). Caveats are: * Since they are mutual funds, they trade at exactly 4:00p EST, and you won’t get charged margin interest on other trades if you’ve put in the order before 3:55p EST to cover the margin * Since it’s not SGOV/USFR/TFLO, you will have to pay state and local taxes on the interest * If set as marginable, anything else you sell won’t settle into cash, and will get tied up as collateral unless you reach out to the margins team and get it freed up
You and your spouse can both get the bonus. I don’t notice any issues with fills but I only buy and sell liquid securities, I would not notice if I was overcharged by a cent per share. I have been on the waitlist for the credit card for 2 years so I wouldn’t count on this. RH gives you $1000 in free margin so I keep $2,000 cash in my RH account to maintain the collateral requirement and buy $3,000 total of SGOV. At 3.75% that 1,000 margin will pay $37.50 per year to partially offset the cost of the gold subscription. Everyone will tell you that RH is bad in the customer support area. I haven’t had any issues when I have had to reach out but they only have a live chat, no phone support.
When you expect expenses in the next 5 years you should hold this money in the HYSA on top of the emergency fund. You don't want to invest money you'll definitely need at some point in the short/medium term because stocks go down sometimes. If you'd prefer to keep the emergency fund seperate then you could put money for upcoming expenses in a taxable brokerage account and buy SGOV. This is essentially the same thing as a HYSA. If you want to save for something at a more vague point in the future, like maybe 10 or 15 years, it is probably better to have this money invested. But in a taxable brokerage account because you'll need it before you retire. The bulk of your investments should be in tax-advantaged retirement accounts.
100% S&P in 457 and 100% in VTSAX in Roth IRA and Brokerage. E fund in SGOV.
How have plays like this worked out for you in the past, for example, going defensive with SGOV? Also, could you share your options strategy?
Traditional valuation ceilings evaporated when central banks began underwriting equity floors. The 1998 LTCM bailout proved that policy can override math. Because the incoming administration views the S&P 500 as a scorecard, liquidity will remain aggressive. Which makes your SGOV safety a high-conviction bet against a printing press. 2026 isn't about fundamentals; it's about political optics.
thanks. My primary use of margin has been to park funds in SGOV which works against my margin but allows me to earn something rather than leaving funds in the sweep which pays barely over zero.
Oh I only moved to SGOV in mid-November. I have a few thoughts as to how/when I'll re-enter into VOO or VT.
\> I'll take a safe 4.25% Not with SGOV you won't. \> over a risky 8.5% OK, but the market is up 18% this year, with many other opportunities doing better. Think defensively if you want, but don't think unrealistically.
If one thousand dollars is all the savings you have, then I suggest keeping it in a money market fund for emergencies. The fund I recommend is VMFXX which you can buy at Vanguard. You don't even have to buy it, you can just designate VMFXX as your settlement fund after you open a Vanguard account. If you are starting an investing journey, and you plan to gradually build up a small portfolio, then I suggest the following simple asset allocation which you can set up in 15 minutes at Fidelity or Schwab: 34% SGOV - treasury bill (30-90 day government bonds) ETF 33% IAUM - physical gold ETF 33% VTI - broad US stock market ETF You can buy fractional shares to make the percentages work out. This portfolio returned 8% annually for the last 30 years, with limited drawdowns and volatility. Occasionally, when one of the asset classes goes significantly out of whack, you'd need to rebalance.
SGOV. Putting money into stock market funds is not parking, it is counting on the broad market going up. While this appears likely, it is far from guaranteed.
SGOV about to start out performing SPY on a monthly basis
Having both TOPT and QQQM is diminishing returns. You have a Silver, Gold and Platinum fund you are hedging hedges it’s like portfolio inception. Your in college and have a dividend fund a bond fund. This makes it a 1 out of 5 you’re paying fees on all those holdings.. I can understand the SGOV because you want to keep money safe for loan repayment but your money market should be making 3% without a fee that’s a waste of money you’re destroying your wealth. I will not give you advice, you should do your own research. If it were my money I would keep the money for loans in a HYSA or money market whichever is paying more. I would make my top tier 2 companies undervalued big moat companies, that entry level now is enough that if the market pulls back I am comfortable knowing I got in at an undervalued price, then id choose 2 growth companies that are riskier. 1 smaller cap company would get a 2% investment and id have the rest in a broad index that is equal weighted, not market cap weighted. That’s just me though. I’m sure plenty of people would disagree with my portfolio just as I disagree with yours. I’m not a financial advisor and this is not financial advice.
This is a controversial take, don't you think? Sure, if your money is in bonds, SGOV, etc. you can consider it paid off. If your money is in volatile/high beta stocks like ASTS, no, tomorrow isn't guaranteed. Just look at April it was $20. If your money is mostly in the S&P, I mean, I'm not saying it will happen but if we see a 30% drop, you technically can't pay it off anymore. BUT your point is valid if your investments or overall liquidity are greatly superior to your debt. Not sure what kind of ratio that would require, say you have 200k on your mortgage and your investments are worth 300k (again, it depends on the amount of volatile vs safe investments), then you are fine to say you are "debt free".
Short squeeze on SGOV inbound 😆
800 million in TIPS 100 million SP500 100 million in SGOV - live off this
how have more people not mentioned the massive dry powder stack this guy sitting on in SGOV…
Thank you! My emergency fund is currently in SGOV. I was wondering if it would be smart to put remaining savings moving forward into something like VBIAX, which is 60% equity and 40% bonds.
Like literally just throw it all into SGOV or something, wtf are you doing putting it ALL in gold, jesus
If you’re saving up for something you want to be sure the money is there when you need it so the volatility of equities are out. You’re on the right track with the t bill ETF. Depending on where you live you might consider something like SGOV to avoid state income tax while your money is parked.
Great job covering 125% of known college costs with SGOV (especially if you live in a state with income tax). Chasing potential growth with a small % of capital seems appropriate provided you have an exit strategy.
>When that account gets to $100k can I just take it out and use it? Yes >Should I be putting my money for a house in a different account? I have a HYSA but the returns on it are only like 3.5% (Amex) so I try not to use that one, thanks. You can use a brokerage account as a savings account, it depends on what you invest the money into. You could invest it into a money market fund or some ultra short bond fund (VBIL/SGOV) and those will effectively act like a HYSA, meaning no real losses and some lower but somewhat guaranteed return Or you could invest in some high risk investment that could gain 100% but could also lose everything So saving in a brokerage account isn't good or bad, its entirely what you buy in that brokerage account. For anything under 5 years I would simply do something like VBIL or SGOV
Doesn't SGOV kick off like 3%? I guess if you dumped enough money into that you'd have some nice passive income with some decent tax advantages
This is not regarded. Actually knows how to park money in SGOV after huge gains. You do not belong here.
Correct! When I say cash that basically means SGOV. I’m long term bullish on space so that’s where I’ll be looking for opportunities.
SGOV for the tax benefit or bonds to avoid taxable events on a longer timeline. That said SP500 will likely beat the 3-4% of safer investments
you don’t, but I’m not sure what you’re not getting. In short your first “interest” payment from SGOV will be larger than what it should be which will make it look like the share is at a loss. Assuming same interest: Your $100 investment in a saving account after the first half month pays $0.50 in interest for a total of $100.50 Your $100 investment in SGOV after the first half month pays $1.00 in dividends, the share price becomes $99.50 for a total of $100.50 but a reported loss of $0.50 on SGOV As long as the SGOV yield is equivalent to the savings account it doesn’t matter when you enter. You may see a loss unless you buy right after dividend but the dividend itself includes what the loss is plus your actual interest. In short a dividend payment will always pay out a month of interest, hence why your share price may show a small loss but you were overpaid that interest in the form of a dividend. You do not lose money in SGOV in any scenario
I am comparing SGOV to a money market account that pays out interest but also keeps principal unchanged. It seems to me that if I sell when share price is lower, I lose money in comparison to if it was held in money market.