XHLF
Bondbloxx ETF Trust - BondBloxx Bloomberg Six Month Target Duration US Treasury ETF
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VBIL is very similar to SGOV, duration also 0.1 year. Current yield 3.66% VGUS, duration 0.4 years. Current yield 3.83% XHLF, duration 0.46 years. Current yield 3.75% All of the above are Treasury bond funds. Their dividends are all of nearly all state tax exempt which make the effective yield higher if you have state income tax. APLU is an intermediate term bond fund with a duration of 6.3 years. It is not a popular one with info easy to find. It is an actively managed fund so the management expense can cut into the yield. It holds a variety of bond types, government and corporate. With the duration of 6.3 years is has significant interest rate risk. If interest rates go up, as they are expected to, you could be waiting for years for the NAV to not be at a loss which cuts into your total return unless you wait it out. It is in no way equivalent to a short term bond fund like SGOV.
I use XHLF. This fund only charges 3 bps fees, and it holds tbills up to 12 months. When rates are falling due to Fed rate cut, this fund should hold higher rates longer. OTOH if rates are raised by Fed, would take longer to rise since the longer term tbills will keep the blended yield as it had been before. SGOV is an excellent fund if you are looking for something closer to a money market fund, having shorter term tbills than XHLF.
1. I think it greatly depends. Living with your parents with few expenses? Maybe 1-3 months. Are you the only breadwinner in a family of 5? Maybe 1 year at least. 2. I put about 10% of my investments in XHLF for this exact reason in my brokerage. If you do put some aside to 'buy the dip', I suggest you have it in _something_ gaining you interest in the interim. On the other have, nothing wrong with dollar cost averaging into investments you feel confident in. 3. Depends. I have a traditional IRA, a Roth, and a brokerage each with different goals. My Roth is just GLDM, AMZN, and VGT, about equal shares of each. I should add VOO, and probably SCHD, but I don't have much in there ATM. The goal here is just growth with some preservation. My IRA is mostly dividend assets I believe in, including SCHD, though with some growth and preservation in there as well (even a bit of TQQQ for some spice). This will likely be my main source of income in retirement, and I'm really just focused on that. My brokerage is mixed, with individual stocks I believe in (e.g. AEM, AMAT) and high income yielding ETFs that I might lean on in hard economic times (e.g. QQQI). But, this is just me. It's _essential_ you think about what you want out of these products before deciding how to invest. 4. I basically listen to Buffett and instigate stocks he has confidence in to see if they will work for me. 5. Real Estate if you have the money and patience to deal with tenants.
SGOV and XHLF are good treasury bond funds that act sorta like hys accounts. I park the 1k free margin in those.
With XHLF, it's just a risk that is different or withdrawal costs too, if, for example, I want to take the money back before 6 months?
The SEC yield for a money-market fund is always net of expenses. So you shouldn't really need to care as much if the yield makes sense to you. SGOV is not money market funds so there is an super tiny bit of interest rate risk. But these are ultra-short duration funds and if you are typically holding for more than 30 days - it's fine as an alternative to a money market fund. XHLF is not ultra-short duration and carries about a 6 month duration. It doesn't mean it's a bad choice - but there is a little bit more duration risk. Also - with the short-term treasury yield curve being inverted, 6 months may be on the lower end of the yield curve. Re: AEAXX - You can always get the actual expense ratio from the investment manager disclosures - that would be here - [https://www.alliancebernstein.com/us/en-us/investments/products/mutual-funds/fixed-income/ab-government-money-market-portfolio.a.018616730.html](https://www.alliancebernstein.com/us/en-us/investments/products/mutual-funds/fixed-income/ab-government-money-market-portfolio.a.018616730.html) >They all should be federally taxable and state/local tax-exempt, as they primarily invest in treasury bills, right? It depends - you have to look at the fund's prospectus and their previous year's tax information. Some "government" funds may hold government obligations and/or repos. which may change the percentage that is exempt from state taxes. If you are in a high tax bracket - you can also look at muni-funds. Re: higher risk and return on cash - that really depends on your williness to actively manage cash equivalents and your knowledge.
Just fyi, SGOV's fee waiver expired so CLIP or XHLF may be preferable now for T-bills IMO.
Depends on time horizon. Just fyi, SGOV's fee waiver expired so CLIP or XHLF may be preferable now for T-bills IMO.
I prefer XHLF, simply for the lower expense ratio (0.03% annually rather than 0.09%). SGOV had lower fees until their fee waiver ended in late 2023. It's penny pinching, but was easy to switch funds.
25% low fee stock market etf(VOO or VTI) 70% short term treasury bill(SHY or XHLF or SGOV) 5% CASH This allocation provides annual return of at least 5% of 3 million=150k before tax
You can buy short term T Bill etfs like SGOV AND XHLF
I use these ETFs: BND, BSV, XONE, XHLF, ICSH. I use them to reduce overall volatility of the portfolio and almost as a cash equivalent. All these except BND are short duration and super cheap.
May want to check out CLIP or XHLF now. SGOV's fee waiver just expired last month.
if they dont want to assume much/any risk I'd suggest something like XONE/XHLF or SCHO combined with a simple money market fund if they have access to a good one.
Your understanding of BondBloxx funds objectives is not quite right. For example XHLF states that it >seeks to track the investment results of an index which contains U.S. Treasury securities that have an average duration of approximately 6 months *not* that it seeks to hold treasurys with a maturity of six months. This is easier to distinguish with the longer duration ones like XTEN. XTEN says it has an average maturity of 13.05 years and an average duration of 9.97 years. What is duration if it's not the same as maturity? Well it is the answer to your second question. >how do bond bloxx ETFs react to interest rate changes? Bonds and bond funds change in price inversely approximately by the change in their yield times duration. Duration is lower than maturity because the bond is paying out coupons before maturity. However, the yield of a 5yr does not necessarily change with the same magnitude or timing as cash rates. Future rate changes are priced in to some extent. You can look at the yield curve as a visualization. >How do you get paid in a bond bloxx ETF? Bonds typically pay semi-annual coupons. Bond ETFs including BondBloxx funds distribute those monthly.
For simplicity buying XHLF six month treasury bill fund may work.
XONE for one year and XHLF for six months. Both have only a 0.03% expense ratio.
TreasuryDirect is terrible. You have to jump through hoops to setup an account and have minimal support or guidance to make sure you know what you're doing. Buy a target duration ETF, XHLF or XONE, for example. They cost 3bps... A fine price to pay to have a professional trade bonds for you.
SGOV has XHLF beat. [https://www.thestreet.com/etffocus/dividend-ideas/best-ultra-short-term-bond-etfs](https://www.thestreet.com/etffocus/dividend-ideas/best-ultra-short-term-bond-etfs)
I use an ETF depending on my timeline. I also have a small recurring purchase of I-Bonds with Treasury Direct when rates were high (might end that soon). XHLF (very low expense ratio) for my emergency fund overflow and TFLO for boosting some expensive items I plan to buy in a year or two. Both have low enough expense ratios where it’s worth it to have someone else handle the work for me.