SHV
iShares Short Treasury Bond ETF
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TLT covered call(buy-write) will yield around 14%. Is this a good place to park money I won't need for 3 years?
Table of Money Market Funds/ETF's or Ultra Short Term Funds/ETF's available on Merrill Edge
Government Bond ETF - Taxes on Distributions?
Thoughts on ETFs for treasuries like SHV or TFLO? Vs cash?
Mentions
For a 1-2 year timeframe with easy access and minimal risk, look at high-yield savings accounts (currently 4-5%) or Treasury bills (3-6 month durations). Both offer inflation-beating returns with virtually no principal risk. Money market funds are also solid options (VMFXX, SPAXX) with yields around 5%. If you're comfortable with a tiny bit more risk for potentially higher returns, short-term Treasury ETFs (SHV, BIL) or CDs with laddered maturities could work. Just avoid anything with stock market exposure or long-term bonds that could fluctuate in value. Remember that keeping house funds separate from investments helps maintain discipline with your timeline.
From https://www.reddit.com/r/Nok/s/SHV5vQFGNo: Yes, absolutely his 9 years prior at both HPE and HP Labs leading their business unit and AI research initiatives is far more important to Nokia than the past year at Intel that is bleeding out talent through layoffs and strategic exits like this one. That move looked like his professional moonshot that is becoming apparent to be beyond anyone’s reach. This hire is more like gaining prime talent from a rebuilding franchise that has no shot at the title. He also worked at some point in his career at Motorola Mobility, so no stranger to telecom. Nokia may not have landed the biggest fish, but he’s looking like a great get, and the right person for what they need operationally right now to facilitate and accelerate toward data center and AI business. No way this can be turned into a knock on Pekka Lundmark. The opposite in fact. He’s smart enough a leader to step out of the way for the deep focused and specific talent needed to run something this complex and technical after he builds it. He’s showing to be an excellent strategist and bankable to the market from his moves the past few years.
VOO and chill works if your only risk is market volatility, but not if the risk is political or currency instability. VOO = 100% U.S. large caps, so you’re fully tied to the U.S. economy and the dollar. If you actually want political-risk protection, diversification matters: - VOO (40%): U.S. growth core - VXUS (20%): global exposure outside the U.S. - GLDM / IAU (15%) – gold hedge - BIL / SHV (10%) – cash & liquidity - STIP / TIP (10%) – inflation-protected bonds - SCHD / JEPI (5%) – dividend income buffer That mix keeps upside exposure but cushions geopolitical shocks. Not financial advice, just risk management 101.
VT is definitely a solid one ETF solution, globally diversified, 60% US and 40% international, covers nearly 9,000 stocks, and yields around 2%. But for real political-risk protection, it’s still 100% equity exposure. If the goal is to hedge instability, I’d still mix VT with: GLDM or IAU: inflation & crisis hedge BIL or SHV: cash-like stability STIP or TIP: inflation-protected bonds SCHD or JEPI: dividend income & lower volatility So maybe 60% VT + 40% hedges for a balance between growth and protection. Not financial advice, just fundamentals talking.
There is also divergence patterns on bond ETFs as of yesterday in $SHV short treasury bond ETF. The same patterns found in PSA and CASH (short term savings). It was reported in the BoA FMS October survey that fund managers hold historic levels of low cash, approx ~3.4%. If cash levels are low for fund managers, there is no cushion to absorb forced liquidity needs! any moderate drawdown and or vol spikes could trigger system wide front end selling. I scrolled back years on the SHV ticker and couldn't find examples where the short treasury bond ETFs are diverging in price momentum and price volume trend. A can of macro worms under the surface. If fund managers need money, smart money would be selling liquid assets early before anyone notices. That’s already been happening.
If your main goal is protecting that $7k while keeping it inside the Roth, the simplest move is a short-term Treasury ETF like SGOV or SHV. They’re low-risk, yield around 5%, and let you stay liquid until you decide how to allocate long-term. If you want some hedge exposure, pair a small portion with GLDM (gold) or a global fund like VXUS. That gives you safety, some diversification, and flexibility — without leaving the Roth or trying to time the market.
Give yourself $50k to play with, set aside $400k in SHV for the tax man, and put the rest in qqq brother.
You really competing BOXX and SHV to GME ? What does the amount of money that an ETF has have to do at all with the amount of money a holding company has ?
And conveniently ignore that exercising warrants increases the shares outstanding. Wait until the GME holders discover how much cash BOXX and SHV have with zero debt.
Definitely pay off her debt. It's really not a lot of money, all it does is create a rainy day fund for her, which is a good idea. Not having financial stress for the remainder of her life will probably make those years more pleasant for her and might even extend her life. I don't recommend taking any risk at all. I would just have her open a brokerage account with any of the major brokerages, like E-Trade. They will actually give you a debit card that you can access to pull money out of the account whenever you need to. Transfer whatever she has into the account and buy as much of the ticker symbol "SHV" that she can afford. If she needs cash, just sell off some of the shares and use the debit card. You may want to apply for a margin account so that she always has instant access to money, but don't ever leave a negative balance in the account. The interest will be higher than your yield. Note, you don't have to use e-trade, Schwab and Fidelity are just as good. I just threw them out as an example. I would avoid Robin Hood or any of the other shady brokerages. You want a major one. Also you don't have to buy SHV. It's what's called an ETF that just invests everything into just short-term treasuries with an extremely low expense ratio. However there's a bunch of funds that do the exact same thing. It's effectively zero risk. You might drift a little bit up and down, but I mean a little bit. It'll pay monthly dividends that just go into her account with a yield a little better than 4%. There's no real penalty to selling the shares and withdrawing the money whenever.
USFR, TFLO, and SHV might be worth a look
Peoples still believe in US economic data? **A key federal agency is increasingly publishing less accurate inflation data** [https://www.yahoo.com/news/u-data-quality-declining-years-163716604.html?guccounter=1&guce\_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce\_referrer\_sig=AQAAAKMbg\_SHV27Se4gCRH7KZ\_VDrYeesIVCiqJf0Y05gWWBwIrUKYXbGDb0qB8WA6lg5Ws0lpfEjQKLcOuGgUN8UNAR1A3hxl-88jBAh7534qJbfLs\_XTtzD3sh\_OiHsQFrTq6z6zgFAiy-t3TgMwxC6BJElJxtux4tj7pEy5rR-EED](https://www.yahoo.com/news/u-data-quality-declining-years-163716604.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAKMbg_SHV27Se4gCRH7KZ_VDrYeesIVCiqJf0Y05gWWBwIrUKYXbGDb0qB8WA6lg5Ws0lpfEjQKLcOuGgUN8UNAR1A3hxl-88jBAh7534qJbfLs_XTtzD3sh_OiHsQFrTq6z6zgFAiy-t3TgMwxC6BJElJxtux4tj7pEy5rR-EED)
Yeah, SHV is a solid pick for 1–1.5 years if your goal is capital preservation with a bit of yield. Rates are still decent, and it’s super low-risk. I’d just keep an eye on Fed rate changes. I use iO Charts to track that stuff easily.
Do you recommend SHV for a period of 1-1,5 years?
Yep! Check out SGOV, BIL, or SHV, all solid ultra-short bond ETFs. Safer than stocks and better than letting cash just sit. I usually pull them up on iO Charts to compare yields and trends quickly, which makes it way easier.
I’m in the same boat as OP, although I do have an emergency fund. I just opened a Fidelity account yesterday, initially $1000 centered around low-risk, long-term holds like VOO, SHV, BND, etc etc., and I plan to put about $200/month into it as well. Would you recommend staying in the low-volatility area like T bonds, or would it be worthwhile to dip into blue chips? My overall goal is long-term growth and stability, even in downswings just so I can build a decent chunk of generational wealth, as my grandparents are probably the first in our bloodline to hand a property down, so I’d like to add onto that for my future children.
You want to buy a house within 2 years. That makes this **not an investment** anymore — it’s a **savings goal**. For money you need in the short term, capital preservation beats return. A market downturn could wipe out years of gains right when you need the funds. **Sell at least 70–100% of your TMUS position** and move it into safer instruments. **High-yield savings account or money market fund** – low risk, 4–5% APY. * **Short-term treasury ETFs** (e.g., SHV, BIL) or a short-duration bond ETF. * Keep some liquidity in case housing opportunities arise earlier.
This interests me. Can you tell me about what a dividend portfolio looks like? SHV pays \~4% last time I checked.
Don’t worry, I’m gonna buy SHV (short treasuries) and I’ll save us all
If you don’t want to sell options, then I’d wait until implied volatility gets back to a normal level. Buy some deep in the money calls on a mix of equities that you like, keep the strikes 6 months to a year out. Make sure to mix in some GLD and some bond ETFs, keep those amounts very low (don’t use up all of your cash. In fact try to only use 30% in options. Then with the remaining cash in your account, put it in a short duration bond fund like USFR or SHV, or just buy some treasury bills. Then let it ride and just keep rolling your options further into the future. That would be a good place to start.
If you work for a living, I'd keep 12 to 18 months of non-retirement assets in cash or something like SHV or SGOV so you have emergency cash. A lot of companies aren't going to able to weather 4 years of this level of volatility.
Can someone explain why SHV chart always look like that? It's freaking me out.
I got 7 figures from real estate sales sitting in SHV since Jan. Gonna drop few hundred on VOO Monday. Sweating bullets.
Maybe I read it wrong, aren’t you trying to get a higher yield on your cash? SHV is actually currently about 4.19% which is accurate given short term rates. I buy tbills directly because they are margined at 1% as a way to soak up my cash position.
Also, what is the risk margin requirement of it? SHV ties up like 5% of capital
Woah. Nice. I like it. Okay, thank you! But the problem is, the borrowing rate. Liquidity is extremely low. SHV has higher liquidity
+26.71% market gain YTD from 348k to 524k on my general investing account including 85k of cash inflows 100% TSLQ currently. Other positions traded during this year included TSLA, TSLL, PLTR, NVDA, NVDL, and SHV.
Yeah, just talk to them. We don't know who your broker is, but they can probably do "everything." Talk to them about getting into a "short-term Treasuries" ETF like SGOV or BIL or SHV. Then ask them about "buying power" after all your money is invested in one of those. Depending what kind of account it is (this works for "cash" accounts with margin), you may then still be able to buy other ETFs and things. Here's a [thread about SGOV](https://www.reddit.com/r/thetagang/comments/11fibnd/holding_sgov_etf/) and some of the "buying power" stuff.
I prefer either PULS or SHV myself.
Can you open a short straddle on something like a treasury bond such as SHV? The price always stays between $110-111, so it seems as though you could always accurately predict the end price. Is it just that nobody buys the other end of the option?
for non poors in the chat, where do you put your excess cash? I'm thinking SHV, SRLN, or BKLN
$1.4m in SGOV would give you $70,000 annual in dividends, some if it *may* be tax exempt because it’s US Treasury vehicles. SHV and BIL are similar.
I’m splitting evenly between NVDA,SCHG,SCHD,DIVO, and SHV Nvda and Schg for growth Divo and Schd for dividends+ a little growth And Shv for bonds+dividends If anything I’ll just weigh more towards the two growth stocks if I want more growth. Most etfs have the same holdings anyways. Anyone have thoughts on this? I’m new but I’ve been studying for a bit. Just started investing like a month ago
USHY and VGLT don’t appear to match your objective. SHV and SGOV are good choices. Short term rates may or may not continue to trend down. You may just want to buy some three year treasuries to lock in that yield for the near term. You may wish to look into muni bonds as well especially if you are in a high tax state.
I tried to buy SGOV/SHV, why does the order take forever to fill?
This brokerage is my playground, 8ish%. 1.2m in ICSH, MINT, SHV. I need pointed towards things to play with. The above loss was IBRX, a biotech that looked like it had cleared all the hurdles. I.E. FDA Approval, manufacturing, strong pipeline, drug with efficacy, etc. But dumped from 8 to 4 over the last several months.
I just started purchasing this. It looks great to me - TFLO has the advantage of the FRNs (higher yield on short term bills) but it is also liquid. The downside is that you are paying 0.15% to hold it (compared to the FRN) but a small price to pay for the liquidity. So when interest rates are cut, you can get out. I've laddered my FRNs from 4/2025 through 10/2025, so I might get hurt on the last one since there does not appear to be much of a market for the FRNs. With the TFLO, you can just sell it before rates drop too much. To answer your last question, assuming you are with a discount broker (no commissions) and with a state that has an income tax, the TFLO is a great place to park short term cash, along with SHV and treasury bills.
SHV, BIL, or SGOV are the safest. for a moderate return, maybe SCHD
You can buy them directly from the government at TreasuryDirect.gov, and your broker likely offers ways of buying them too. Or you can buy treasury ETFs like SHY and SHV.
You could buy SHV, SHY, or other ETFs that hold treasuries maturing in ~1 year. Or you can buy them directly from the government at TreasuryDirect.gov
At this point a short term bond ETF is better than what he has. Have him put some inside an ultra short term bond ETF like SHV and put a smaller amount into the S&P 500 like the VOO ETF or a total market ETF. His advisor has not done a good job so it is better to go with what is working in the overall market.
I would put it all in SHV at first then gradually sell it off to average in to VTI/VXUS 80/20 over the span of several years until you've moved as much as you are comfortable.
You can look at short term treasury ETFs also. Such as SGOV, USGR, TFLO, SHV
To get started, open a brokerage account and start putting it in a diversified portfolio of ETFs. You could start with a TBill fund like SHV to get your feet wet, or go with a three fund portfolio like VT, GOVT, and IAU, with the majority in the stock fund VT. Instant global diversification.
The 0-1 year fund won’t exactly match the performance of a 1 year TBill. Because it holds a portfolio ranging from 0-1 year, it’s average maturity will be considerably shorter. I’ve used their US analogue SHV and while it’s not quite a money market fund, the price volatility is nearly nil … the vast majority of it is due to the accumulation of distributions.
If you have access to a brokerage account and are investing for an under five year time frame, consider buying shares in SHV. It’s a TBill (US Treasuries 0-1 year maturities) fund having negligible downside and a yield in excess of 5%, that you can sell at any time without penalty.
Some T-bill ETFs: SHV, CLTL, BIL, SGOV, GBIL Look for a low expense ratio.
>What do the fees to holding these mean? The fees cover the expenses to manage the fund. >am I losing more than I'm making when I earn money holding these? No. The published yield is net of expenses. >Say I buy 400 shares of SHV and sell the entire 400 shares within a month after the ETF has gained .25-.40 cents, would the ETF fees significantly or completely impact the amount of money that made on the bond No
Floating rate loans are a sort of proxy for shorter term bonds. Because they rate adjust, they’re not unlike a series of short term loans at whatever the current rate is. Their credit quality might not be satisfactory for low risk funds though. I prefer to just go with plain vanilla TBills and avoid the complexity. You might want to check out the iShares TBill fund SHV.
SHV is a good TBill ETF; covers the 0-1 year part of the Treasury market.
Honestly, if you don’t want to mess with dealing with the treasury direct site…. Just buy ETF that invest in Short term govt debt Examples: USFR, SGOV, TFLO, SHV They all pay 5% and higher and some can be free from state taxes. It takes the hard work out of treasury ladders, dealing with the website, having to figure out when auctions are. Dividends are deposited each month into your account and you can just reinvest the dividends.
I’m not aware of anything fitting that exact description, but you can come close. 75/25 SHV/GOVT. Yes, the proportion will drift due to price changes, but they’re minimal. Most likely you could check once a quarter and find you’re still with a percent or so of your target balance.
Elain G says: SGOV 5.36% 0.05 iShares 0-3 Month Treasury Bond ETF composed of maturities less than or equal to three months. TBIL 5.37% 0.15 TBIL is a passively managed, single- bond fund that invests in the most recently issued, “on-the-run,” 3-month US Treasury Bill. SHV 5.30% 0.15 U.S. Treasuries that have a maturity of less than or equal to one year. UTWO 4.74% 0.15 UTWO is a passively managed, single- bond fund that invests in the most recently issued, “on-the-run,” 2-year US Treasury note. The fund is designed for those specifically required to track the 2-year tenor on the yield curve. UTHY 4.54% 0.15 The fund tracks an index that holds just the “on-the-run” 30-year US Treasury bond, TLT 4.55% 0.15 iShares 20+ Year Treasury Bond ETF
Everyone has to judge for themselves whether it’s worth the effort, but unless the amount involved were quite large, the ongoing attention needed for doing TBill ladders wouldn’t be worth the effort to me. Those with a brokerage account can consider ETFs like iShares SHV. At last check, the expense ratio is 0.15%.
Especially your time frame is as soon as this summer, consider TBills. If you have a brokerage account, you can buy the iShares fund SHV. If you don’t, check into a three month CD at your bank.
Just buy a leap call and invest the cash in SHV or some other money market fund. It amounts to the same thing…
I use USFR, SGOV, TFLO, SHV. I also have some in BOXX.
I used to buy shares of MINT, but SHV and BIL are good also.
I converted my cash to SHV for a period of about a year before it was clear the trend had reversed. Earned a grand total of $20k. Sure it's better than nothing, but that's not really much considering the capital. It's even worse for people doing CD's or actual bonds considering the lockup period and having roll t-bills. Which is why I advocate bonds funds if you must use government debt as your cash instrument. Bonds are dead in the modern monetary regime. They're okay if you're sitting on 8+ figs. Owning rentals is NOT passive in the slightest. And REITs have a huge risk of getting creamed so all not as safe as some people think.
Not recommending, just giving info, but [BIL](https://www.ssga.com/us/en/individual/etfs/funds/spdr-bloomberg-1-3-month-t-bill-etf-bil) and [SHV](https://www.ishares.com/us/products/239466/ishares-short-treasury-bond-etf) are two large short-term US government bond ETFs. BIL has average maturity of 30 days, and SHV has 3-4 months. Both have expense ratios of just under 0.15% Not sure about options for ultra-short commercial bonds.
Not worth it, use IBKR and buy $SHV. And even without doing that IBKR will offer 4.8% on the cash.
I've never had to sell early, but Fidelity currently has the spread at $0.40 per $1k. That may tighten up when markets open. I think they might charge a small fee to sell early, like $1. Literally a small price to pay for what I've earned so far. If you want higher liquidity, a treasury ETF like USFR, SGOV, SHV, etc. will give you T+2 liquidity and a good size daily trading volume. There's a small ER and the state and local income tax exemption isn't quite 100%, more like 95-99% depending on the fund, but generally a good deal for the convenience.
> I’m aware of paper trading but you’re given a 1M float to start with and I’d rather scale it down so I understand incoming/outgoing balances more That's wise. Say a more realistic balance for your real money trading is 2000. In that case, I would recommend taking 998000 of the fake money balance and buy shares of some stable stock and then don't touch those shares. In the US, we can buy shares of BILL or SHV, where the share price only varies by the amount of interest payments -- basically as good as cash but locked up in shares that you train yourself not to touch. This is preferrable to simply losing 998000 in a bad bet as a way to reduce your balance, because that loss shows up in all of your performance metrics. Hiding the cash away in shares that don't change much in price won't show up in your performance metrics.
I would not recommend variable, because if you do not overfund the investment part, it’s going to blow up on you. Honestly, I personally don’t think permanent coverage is needed based on what I’m reading. Unless you have a reason to think you would be uninsurable in the future for some reason. Here is some basics (not financial advice) 1) Build up emergency fund. I use Fidelity and have the following ETFs make up my emergency fund. SGOV, TFLO, SHV 2) max out your IRA. Whether that be your Roth IRA or traditional IRA based on your income limits. Use low expense ratio diversified ETF. Look at boglehead mindset. 3) if you have a need for life insurance, and don’t want to loose your premiums, maybe look at a return of premium policy however, there is a cost for that rider. 4) if you want to lock up money but have it available, Look into a T-Bill ladder. 5) seems like you already have a brokerage account since your trading options so, you could also stash money there. Just some things for you to look at
For emergency funds I use short term treasury ETFs: SGOV, USFR, TFLO, SHV
Then you should just use a TBill ETF instead of individual TBills. BIL or SHV or similar.
Short term govt ETF? Paying about 5.5%. SGOV, USGR, TFLO, SHV
You are correct. Retirees often need income. It’s easier for budgeting purposes. So telling a retiree to just dump everything into SPY isn’t doing them a favor when there is a risk SPY could go down and they need income. It’s why Bond funds exist. It’s why FLOT, SHV and JEPI exist. I get really tired justifying to people why I have some of my money in FLOT, some in SPY, some trading options, and some in covered call funds. For me, I’m 43. I want some income as it’s stable. Especially if I run into some unexpected expenses and dont wanna sell SPY in a down year. And yes I will sacrifice some potential total return for that. The point is people need to invest according to their own goals and own risk tolerance and where they are in life. It’s also why FAs exist (I’m not one).
Put all your desposible income into: SGOV, USFR, SHV, etc. When you sell those, you get your money instantanously. It is even less hassle than trying to withdraw early on your CDs.
Could you talk to me about how those SGOV SHV USFR TFLO work?
Brokerage account. SGOV, SHV, USFR, TFLO. If you have higher risk tolerance, maybe a little bit in high yield corp bonds.
Look at SGOV, TFLO, USFR, SHV
What's the advantage of doing all that convoluted math and transactions versus splitting up your money between TLT and SHV (long-term and short-term treasury bonds)? Serious question.
There isn’t anything inherently wrong with this strategy. It’s the same as selling a CSP on SPY at 390 with September expiration. As someone stated your annualized return is 6% (5.8 to be exact). You have a 97% probability of profit. I sell ITM calls too but only on my retirement account because I can’t sell puts in Canada in my retirement account. What I would do is sell a 390 put and if you’re bullish buy a call with that credit to do a long combo. You will then still have some upside. Or just sell the cash secured out. Take the capital and put it in FLOT or SHV and collect an additional 4-5% of dividends. ITM calls can make sense but only in certain situations. Unless you can’t sell puts this isn’t one of them.
Yes, as long as you're ok with 3-6 market/business days to access the funds. Sell on market day 1, T+2 to settle, then it's available for withdrawal from a Fidelity account. If you're not making the payment directly from your Fidelity account then another 0-3 days for a wire or ACH/EFT or whatever. I keep most of my emergency fund in SGOV. USFR, SHV, etc are also good options.
I am ! What's your recommendation? I'm into Sgov and wondering if throwing SHV and Shy in the mix would make sense . Don't want to make long term plays, 1-3 years is fine for me
>I believe our income needs will be less in retirement but also believe taxes will continue to increase. Yeah, I'm in the same boat. I think having a healthy mix of Roth, traditional, and taxable is the way to go as it will give you some flexibility in where to draw from. ​ >I am contributing the $550 a month into a fidelity money market account (FZFXX) that has a 7 day yield of 5%. I did some research and thought that was comparable if not better than HYSA. It's also easy to manage and access through fidelity. FZFXX is fine. My comment about the HYSA was for your 8 months emergency fund, which you said was in a "traditional savings account", if it's a HYSA already than great. There are other options for all this money that might give you a higher yield, especially if you have state and/or local income taxes. Treasury earnings are exempt from state and local income taxes, so the post-tax yield of tbills, treasury funds (like FDLXX), or treasury ETF's (like SGOV, SHV, BIL, USFR) are probably higher than what you're earning with your savings account and FZFXX. If it's a significant balance you should do the math on how much more you could be earning and decide from there. Personally I keep 2 months expenses in FDLXX and 5 months expenses in SGOV. ​ > I originally planned to invest it in an index fund but thought the money market account at 5% was a good option. Would you still put this in a index in the current market conditions? This goes back to purpose/goals. Money should be invested according to its purpose (especially timeline and risk tolerance), not based on current market conditions or interest rates. The latter is a form of trying to time the market, which usually backfires. Current interest rates are simply a nice bonus for the cash you need to keep on hand, they're not a reason to avoid investing in the market. If you didn't need the cash, then you've earned maybe 5% this year but missed out on 13% growth in VTI over the past 12 months (18% YTD). If you need it in cash, then definitely keep it in cash. ​ > This account is for future potential expenses, most notably, opportunity to buy into the company I work for. I would still need a loan but this account value is a solid down payment on the expected entry fee. I should know that in the next 6 -12 months. While our cash goals are met, we have had a lot of financial changes over the past three years - new house, two kids and four open heart surgeries. I was just being safe and making sure we would not get in a financial bind with all that going on. Regardless, I may decrease this and up my 401k contribution since I am not maxing it out currently. Is that what you would recommend? I think keeping it in cash is a sound approach especially until you figure out if and when you need it.
Started at 19, first hit 100K at 25. Now again at 27 (hopefully for good this time) Now I hold QGRW, DIVO, IXN, XYLG, and SHV
If I get called away at 85, I will be very happy since I was earning like 4.8% in SHV and now with this play I may easily earn like 14% if long term rates stay below 6%. My worry is on the other side where I am left holding the bag and selling calls year after year to recover my capital. Imagine rates going to 8% that will be a disaster to my position. TLT will be around 50 or something. It will take me like 5-6 years to break even.
If you want to mimic a t-bill ladder, you can use a t-bill ETF like SGOV (similar to 3 month) or SHV (similar to 12 month). If you really want a MMF check out VUSXX it's Vanguard's mostly treasury MMF (currently 94% so about that fraction of dividends would be exempt from SALT), looks like it's similar to an 8 week ladder.
>Does anyone recommend a money market account? A money market account is a type of bank account offered by a bank. You are thinking of a money market mutual fund. Since Robinhood doesn't offer access to mutual funds and you can't build a treasury ladder in Robinhood, a proxy would be short duration treasury ETFs such as SGOV, BIL, SHV, etc. Note that ETFs settle T+2 vs T+1 for money market mutual funds.
High-yield savings ETFs typically invest in short-term bonds, which are more sensitive to interest rate changes than longer-term bonds. Additionally, high-yield savings ETFs may have higher expense ratios than other types of ETFs. Here are a few high-yield savings ETFs that you may want to consider SPDR Bloomberg 1-3 Month T-Bill ETF (BIL): BIL tracks an index of U.S. Treasury bills with maturities of 1-3 months. The ETF has a current yield of 4.8%. iShares Short-Term Treasury Bond ETF (SHV): SHV tracks an index of U.S. Treasury bonds with maturities of 1-3 years. The ETF has a current yield of 4.7%. Invesco UltraShort Duration Treasury ETF (UST): UST tracks an index of U.S. Treasury bonds with maturities of less than 1 year. The ETF has a current yield of 4.6%.
SGOV, BIL invest in t-bills with very short duration. As ETF’s they settle T+2. I have TTTXX through Merrill and the cash balance is available for transfer T+1. Also have VUSXX in a JPM account, and the cash balance is available T+2. BILS and SHV have longer effective durations around 3-4 months.
Bonds can be risky. TLT has tanked. That said there are some almost risk free ETFs like SHV and FLOT that yield 5%.
avoid BND. Choose a duration: SHV SHY VGIT VGLT.....
SEC yield calculations are really weird. It's a useful number, but it isn't really 100% predictive of the future. Again, focus on the underlying holdings. If a fund holds 100% treasuries (as both SGOV and SHV do), their returns will be identical (minus expense ratios) to treasuries of the same duration.
If I look at SHV it has a smaller 30-day SEC yield. Is this because the further we go out on the curve?
ELI5 : how safe is SHV etf? Am I understanding correctly that this essentially as safe as a high yield savings account? And what happens if you dispose of the shares before the payment of dividend - do you get paid on a prorata basis for the days held? Thank you
I hold T, ARM, VZ, and MO in my long term, with dividends at roughly 7.2% annually (small investment in ARM cause I was allocated shares in the IPO, largest holding MO with over 8% dividend). I sell covered calls on all of my shares to garner additional income. Everything else is flat at end of day except for my short term 5% interest yielding T-bill SHV, where I’ve parked $160k.
I used to work for a bank that still pays approximately 0.1% (*) Whether you do HYSA or SGOV or SHV you're way ahead of that noise (*) I still have the account, it's convenient for paying bills, it just no longer has money in it
In general, I don't think folks should obsess too much about short term savings yield, outside roughly trying to make sure you're not paying unnecessary taxes. I think the better thing to consider is the underlying holdings. SGOV has a duration of about a month, and holds exclusively Treasuries. So the returns will match a one month Treasury. SHV has a duration of about 3 months, so returns will match a three month Treasury. Right now, that means SHV will have a slightly higher yield - which makes sense for slightly higher duration risk. Take a look at [the yield curve](https://www.ustreasuryyieldcurve.com/). Further to the right means you're more subject to interest rate (which can be a good thing or a bad thing). Further to the left means your money will be more stable - but when rates change, you don't get any benefit or drawback from it (which, again, can be a good thing or a bad thing).
I think the average volume for SHV is a [little bit higher according to etf.com](https://www.etf.com/etfanalytics/etf-comparison/SGOV-vs-SHV), but if you look at the last 30 days the volume for SGOV is higher. SHV also has a bigger market cap, which might be considered an advantage (it implies the liquidity should be better in extreme volatility). In any case, they're quite similar, and until rates come down they should be nearly equivalent. SHV will lag behind SGOV ever so slightly up to the point where rates come down, and then SHV should outperform until the existing treasuries drop off.
SGOV and SHV have nearly identical volume (with SGOV , and longer duration bonds are a bit more volatile (due to duration risk). I'd call SGOV a tiny bit more liquid than SHV. Though frankly, I don't think it matters which someone picks.
For that purpose, SGOV or SHV should be fine. Personally I prefer SHV, it should perform a little better when rates drop, and it has more liquidity. The downside to SHV is that it has slightly higher fees, but I think the difference is negligible.
Thank you I will look at SHV. Good for short term investing of cash that I need to be liquid..
Good in what sense? It's a decent ETF if you're looking to get exposure to short-term treasuries. Another option is SHV, which has slightly longer durations (up to 1 year).
If you want something as close to "guaranteed" as possible, just go with something like SHV for now, or maybe SGOV. A better option is probably something like NTSX, so you can capture some of the growth upside with a bit of downside protection from a treasury ladder.
Consider low-risk investments like money market funds, short-term bonds, or corporate bonds for your parents. Look into BIL, SHV, and RSP ETFs, which are easy-to-buy investment funds. Vanguard versions usually have lower fees. Get more guidance at optionempower\_com.