How SGOV Works

SGOV – iShares 0-3 Month Treasury Bond ETF

This is a low-risk exchange-traded fund that invests in U.S. Treasury securities with maturities of three months or less. It is designed for cash management and portfolio stability, acting as a high-quality, liquid alternative to bank deposits, offering greater liquidity and potential yields than traditional checking accounts but with minimal risk of principal loss. SGOV aims to provide exposure to short-term government debt and delivers monthly distributions while being exempt from state and local taxes.

Key Characteristics:

Investment Objective: To track an index of U.S. Treasury bonds with remaining maturities of three months or less.

Low Risk: Due to its focus on short-term government bonds, it has virtually no credit risk and very low volatility, making it a stable holding.

High Liquidity: As an ETF, it can be traded on the stock market daily, providing easy access to funds, similar to cash.

Cash Alternative: It serves as an effective cash management tool for parking funds, offering potentially higher yields than bank accounts without the typical volatility of other investments.
Distributions: SGOV pays monthly distributions to its investors.

Read more here: iShares 0-3 Month Treasury Bond ETF

Milestone Oct31

Milestone Oct31 40 days into this strategy, and this milestone is taking some measurements at the end of the month, October 31st. A few things have taken place, one completely expected, and the others, more significant, and somewhat unexpected. SGOV – The cash alternative First of all, the body of the dragon, the slow and …

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Milestone Oct17

Milestone Oct17 Here we are at day 27, almost a full month, and just completing the first milestone of this new strategy that began on September 21st. Things were going along perfectly for a while, until October 10th, when presidents Trump and Xi of China began to have their public spats over trade issues. Markets …

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SPY versus SPLG

SPY versus SPLG Initially when I chose SPLG as the instrument of choice it was because the share price is only in the $70s, and I felt it would be easy to manage. Some of the observations I am noticing however will make me consider SPY as the option rather than SPLG. SPLG has only …

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