XBIL
US Treasury 6 Month Bill ETF
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It’s the first response on Google. You can just buy XBIL on Robinhood
Semi options beginner here that did a lot of math with various derivatives and things to invest in to also find a crash insurance like OP or just a more stable investment. Bonds can also go down a lot, like 20% in 2022. Gold btw is also not that secure and can go sideways for years where you might sit at -10% to -20%. Gold dropped over 40% from 2012 to 2015. I bought a well running and stable corporate bonds ETF three weeks ago and it's wobbling around at -2% to -1% so far... I made mixed experiences with gold and sector ETFs as well. How about collars instead of bear spreads? Did you do the math for that as well? The idea would be to fund a crash insurance by limiting the upside and maybe miss an extra strong bull run. S&P 500 has an average annual return of 9% to 14% depending on how far back you look. Maybe not the best example and timing but for example this SPY zero cost collar for in half a year would cap your returns to -9.5% and +7.3%: [https://optionstrat.com/build/collar/SPY/SPYx100,.SPY260618P620,-.SPY260618C735](https://optionstrat.com/build/collar/SPY/SPYx100,.SPY260618P620,-.SPY260618C735) \+7.3% would be quite a strong bull run for six months. This one for in 12 months looks better with -16% to +14%: [https://optionstrat.com/build/collar/SPY/SPYx100,.SPY261218P580,-.SPY261218C780](https://optionstrat.com/build/collar/SPY/SPYx100,.SPY261218P580,-.SPY261218C780) One can of course make it more or less wide and have a bias to one side to move the breakeven and max losses and profits. My newest idea is to look at bull spreads as one looks at the losses and profits from collars. Instead of considering investing for example 10,000 $ into a collar and have a return range of -10% (-1k$) to +10% (+1k$) one could invest that 1k$ maximum loss one is willing to take and invest it into a bull spread and get interest from the not invested money or invest that into something much more stable like treasury bills (TBIL, XBIL, ...). This might be working slightly better with those "discount call warrants" (basically like collars or bull spreads) that I'm using since options are harder to trade here in Germany but we have all those fancy warrant types. Here would be a bull put spread (put credit spread) with the same values from that second collar: [https://optionstrat.com/build/bull-put-spread/SPY/.SPY261218P580,-.SPY261218P780](https://optionstrat.com/build/bull-put-spread/SPY/.SPY261218P580,-.SPY261218P780) At first it looks worse with that breakeven at +2.4% instead of +0.4% but if the rest would be invested into XBIL you would currently get +4.6% on that. When doing the math of 16% invested into the bull spread and 84% invested into XBIL: 0.84 \* 4.6% = 3.864%. So that would effectively shift the profit range by those 3.8%. The maximum profit of that bull spread is (weirdly only?) 67%. 0.67 \* 16% = 10.72%. So if one would invest 16% of whatever into that bull spread, the total profit range is -16% to +10.72%, which is worse than the collar. But when considering investing the rest into XBIL for example the range moves to -12.2% to +14.52% which is actually better than the collar.
Just buy TBiL ETF and leave it. I did treasury bills for a long time. This is much less fuss. Getting 5.2% consistently as a state and local tax free dividend each month. You give up about 1/10th of a percent going this route instead of Treasury Direct auctions. And it’s less hassle than the secondary market. Or explore XBIL, SGOV, CLIP ETFs. They all are about the same. You’ll find religious arguments for every question here. Just my opinion. If you want that 1/10th percent extra without the ability to sell anytime you want, then buy New Issue Treasury Bills from your broker and turn on AutoRoll. For me, I’ll stay with the two-day liquidity.
I like XBIL for the yields for now.
XBIL is a good option for 6 month tbills.
XBIL ETF at 5.5% right now. Easy no brainer if you want to keep your $ liquid, and still state tax exempt.
Split between XBIL (6 month Tbills) and TBIL (3 month Tbills)