SGOV

MrsEveryShot

I learned my lesson in ‘21. time to SGOV and chill

joe-re

As I said: risk free interest rate from t-bills. If I invest in something riskier with higher volatility, it better have higher reward. It's an approximation, since it fluctuates, but you get more or less that by buying SGOV.

Lost-Practice-5916

Nothing is more secure than having your own T Bills. Usually pays better than SGOV or MMFs too.

StatisticalMan

Yes. As are all dividends. Dividends are never free money. They are just paying you with your own money. The size of the dividend relative to the price, low volatility, and the regular nature of the payments just makes it more obvious with SGOV.

Richard_Judo

I noticed SGOV has a monthly price cycle where it resets on the 1st and pays dividends near the 7th. Do you know if there is an impact to dividends if I sell near the top of the cycle, before the regular payout? I'm trying to figure out the best strategy for liquidation.

StatisticalMan

Sadly there is no universal standard. There should be a disclosure filed by the fund which goes under a number of different names which breaks down the taxable vs tax exempt portion of the distribution for the year. For SGOV it looks like this: [https://www.ishares.com/us/literature/tax-information/2023-ishares-us-government-source-income-information-stamped.pdf](https://www.ishares.com/us/literature/tax-information/2023-ishares-us-government-source-income-information-stamped.pdf) They put one of these out early in the following year (so Jan or Feb 2024 for the 2023 tax year).

cafedude

> Note SGOV isn't guaranteed to be 100% state tax exempt. Last year it was around 93% tax exempt though. You have to compute the taxable vs tax exempt portion yourself. It is pretty simple but if you want a statement from your brokerage showing tax exempt interest then buy t-bills instead. Oh, I see. I imagine this is also the case for the vanguard federal and treasury money market funds. Where will I need to look to determine the portion of interest that's state-tax exempt?

internet_poster

T Bills > SGOV/other listed money market funds >>> HYSAs in terms of safety, but even the HYSAs are almost sure to pay out if the shit hits the fan (as with SVB/FRB and others)

SnS2500

> Is there a downside to SGOV vs. a Money market fund? No. They have slight differences that might make a particular person prefer one to the other, but they are basically the same, assuming you are comparing SGOV to a state tax exempt MMF. > Is it less safe? Basically no. Both have minuscule risk of US government collapse.

StatisticalMan

t-bills are not really "locked up" given you can sell them on the secondary market. You may be forced to sell them for a very small loss if rates move sharply against you and you need the money now but that is no different than SGOV. SGOV is just buying t-bills. It is more flexible and convenient in exchange they take a small fee off the top. The risk profile is nearly identical and incredibly low.

Valkanaa

If you buy SGOV you'll get the same rate for $0/month

Noveleiro19999

Whats the diffeence between TFLO and SGOV?

uninspired

BIL and SGOV are tax-advantaged over bonds.

SnS2500

TLT is not a place to park cash. It's a high risk investment. SGOV and BIL are examples of ETFs to park cash.

RemarkablePassion726

You're heavily invested in highly leveraged growth companies. Consider adding some consumer staples or healthcare as a hedge. ABBV has a very low correlation with the rest of your portfolio. For an uncorrelated growth play, CVS is interesting if they can manage to execute on their turn around. That said, on the order of 3-6 months, it's hard to beat some good old fashioned SGOV or VUSXX while you decide what you want to pull the trigger on. 5.3% is nothing to sneeze at, especially with valuations across the board being so high.

quantumoutcast

Yeah, sounds like a good deal. Can you post the link here? FZDXX is very high quality with a slightly higher yield, but I prefer FDLXX because it holds only treasuries whereas FDLXX has a little bit of credit risk. Also FDLXX is state tax free, so for me it is higher effective yield. It depends on where you live and what your tax bracket is. Remember these funds are not FDIC insured, but CapitalOne would be. Another alternative after you grab the CapitolOne bonus is SGOV ETF. I have some money in there too. It holds 0-3 month Treasury Bills, so as good as insured, and is yielding 5.27% yield.

DancesWithTards

GOVT and chill. But keep a portion in ultra-short treasuries like SGOV/CLIP and floating rate treasuries USFR/TFLO. If you live in a state that taxes treasuries, go for ICSH. You can sell the ultra-short funds when the yield curve un-inverts.

mrnoonan81

12 shares of VOO is approximately 12 shares more than the average 18 year old has invested. For every dollar you invest today, it may be worth 97 dollars by the time you're 65. That being said, it may be worth 0.95 in a year. It's more of a long term investment. If you're looking for shorter terms, HYSA, CDs, money market finds, and certain ETFs (like SGOV) are more guaranteed to produce a yield over the short term.

MrP0000

There is Fedaral Home Loan bonds. I saw some at 6%. They are callable though. So you may have to repurchase more frequently.    Or just SGOV ETF if you want to be more passive. 

AICHEngineer

For a bank with a HYSA, I've enjoyed my experience with sofi the last two weeks. You need a job with direct deposit to qualify for the HYSA tho. Even better than a HYSA would be to leave extra money in a brokerage and at least collect the risk free rate from a money market fund (at fidelity, they have SPAXX which is ~5% apy due to current Fed funds rate) or from a tbill fund like SGOV or a synthetic risk free fund like BOXX. SGOV is better if you have high state taxes, BoXX is better if you dont

httmper

Honestly, without knowing more info it’s impossible to give suggestions. Missing info: age, income, current financial situation, risk tolerance. So here is real general advice 1) if you don’t have it, create an emergency fund using short term treasury ETFs like USFR and SGOV 2) based on risk tolerance and Timeline, this should mostly be in a 2 or three fund portfolio. Total US, total ex-US and possibly a bond fund depending on age. Low expense ratio funds.

Valkanaa

I can beat a HYSA with no risk at all. $SGOV pays 5.3. It's actually better than that because those are funds that you can immediately put into the market. HYSA will need 3+ days to transfer in. And right there with you. I buy value. It doesn't always win but it gaine fairly consistently

Livinlovin123

These look pretty good. Assuming I am reading this right. At a high level, every month SGOV pays out 1/12 of the estimated yield. At the moment that looks to be roughly 1/12 of 5%?

uninspired

You can just do a treasuries ETF far more easily and get the same state tax exemption. I hold SGOV rather than money market funds. Monthly disbursement. Highly liquid so could sell on an instant if you needed to.

Noveleiro19999

Whats the difference between TFLO and SGOV for bonds?

Noveleiro19999

Whats the difference between TFLO and SGOV for bonds?

TequilaTrader

I have some cash in SGOV which is useful because I can move it quickly and it keeps my account balance high. Over 5%.

AllTooWell31

#Attention I have upgraded my price target for SGOV to 100.70/share. 💎 🙌

Socom_US_NavySeals

Prostitutes don't accept SGOV nor do my dealers.

throwaway1177171728

Why? You can get 5% from SGOV and buy/sell it instantly every trading day.

SinisterStroodle

https://preview.redd.it/hn7ui0ccn7zc1.jpeg?width=1170&format=pjpg&auto=webp&s=38439b03a6156fd5fc06b9a14f24c4afda96a591 SGOV the only green in my portfolio rn

realdonaldtrumpsucks

Thank you! I’ll be buying SGOV (prefer it over BIL?)

dh6636

Put the money in a brokerage account and park it in SGOV till you want to reallocate. It is an etf that mimics short term treasuries. It’s highly liquid, zero lock ups, and the fund invests in t bills so you can still realize the tax advantaged benefits of actual t bills. I’ll never buy a CD, I really don’t understand the purpose they serve in this day and age.

mdatwood

What I *did* in your position was pay off any non-mortgage debts, put the rest in an index fund, turn on DRIP, and call it a day. If the money is taxable, run the numbers and put some aside in SGOV or something similar for tax day next year.

AICHEngineer

The legitimacy of the product is enhanced by the inflows to the fund it's experienced. The tax benefit should undoubtedly out weigh the higher expense ratio. Also, it's chart shows it does what it promises. It's a diagonal line with almost no volatility on a multi month scale. If they can avoid distributions, they do, unlike SGOV which is why SGOV is like a jagged blade.

AICHEngineer

If the CD could lock in a 5% rate, that may be very tempting. It hedges the risk of fed funds rates dropping, which would lower HYSA yield and short term Treasury yields. You can do better than a HYSA with a money market fund, or a fund that produces the risk free rate with treasuries like SGOV or BIL. BOXX is also an option, which is more tax efficient than SGOV, but may depend on your state. It uses a box spread to synthetically produce the risk free rate but under better tax treatment.

Valkanaa

I wouldn't put your emergency fund in checking. There are two options that are better. HYSA or holding short term bond ETF like SGOV That should (currently) pay out 5.3% The downside is you will need to wait a few days to ACH transfer funds into your checking (which generally pays nothing) At 3k that's probably too much work, but mine is 35k so... Ideally you want enough to support you for 6 months

httmper

You can look at short term treasury ETFs also. Such as SGOV, USGR, TFLO, SHV

hgreenblatt

"Sit in Cash" . May not apply to you, but I get 70% buying power on my SGOV, that returns about 400 per 100k per month just now TD account until next Sunday.

Sucked-Off-JPOW

Pooters on SGOV

MomOnDisplay

Yes, hello, I would like to YOLO 0dte SGOV puts if at all possible

MomOnDisplay

Lol why is SGOV a trending ticker here

throwingitanyway

i've only heard of SGOV and BIL. do you prefer TFLO for a specific reason?

AllTooWell31

Guys SGOV is the same thing as a CD or hysa right?

AllTooWell31

Bro just buy SGOV shares, I think it’s the same thing but paid monthly

JPows_ToeJam

SGOV hitting 5.25% and no chance of losing any principle

JPows_ToeJam

SGOV is paying 5.25 and hasn’t nearly the fluctuation in your baseline investment

RetiredMillionairee

UFB Direct 5.25 % FDIC Insured. No market risk. Easy access to funds. Easy to open an account. One of the problems with SGOV and BIL and other bond ETFs that folks fail to mention is that the interest payment you get is subtracted from the underlying price of the ETF thereby causing the price to go down on the ex-date, just like a stock dividend. Example: If SGOV was trading around 100.80 at end of April. May 1st was the ex date and in the amount of 0.42/share. As a result, the new starting price of SGOV is 100.38. So while you will get the dividend of .42, your underlying holdings decreases in value. So if you need to liquidate right after the ex date, you’re probably going to take a little loss on the underlying holding. Now, SGOV and BIL and others somehow increase in price over a month’s time and tend to get back to their previous month end values. Using the SGOV example, it will probably get back to around 100.80 by the end of May. Because of all this, I would not recommend a treasury bill ETF for an emergency fund when you can get basically the same yield on a savings or checking account. I would recommend SGOV or BIL for any Robinhood IRA account that has idle cash. I found out that they do not pay interest on cash balances in IRAs (they do pay interest on regular brokerage account cash balances, though). Since they pay no interest on cash in IRAs, you might as well put it in SGOV or BIL while it’s sitting there and get ~5%.

aplusivyleaguer

I did my first SGOV purchase 2 weeks ago too and I understand why my position shows a loss after ex-div date. So is the dividend always supposed to overcome that loss? That's my confusion right now since the loss and gain might cancel to no net gain?

AbbreviationsFar9339

SGOV

mdatwood

No idea about wealthfront. SGOV is 90%+ t-bills so it state tax exempt in most (all?) states. It pays out a dividend monthly. IMO, it's a great way to keep cash you're expecting to need soon. There are also others with similar characteristics, but SGOV is my goto.

Affectionate_Law3788

He's going to say a lot things, eloquently, and at great length, but I'll summarize for you. >!something something something inflation. Something something something higher. Something something something LONGER!< My position/play? Hold stocks you have now (unless it's some seriously risky stuff that's going to get screwed by its own debt). Buy/hold SGOV. Keep a good bit of powder dry while we see how this plays out over the year.

internet_poster

it really doesn't matter much when you buy/sell SGOV, and there's no real way to time it. the stock gradually rises every month in anticipation of the dividend, and drops by a corresponding amount after it's paid out. just look at a 1-year+ timeseries of the stock.

B_P_G

SGOV hasn't paid out since April 17th so your time scale doesn't make sense to me. But normally it will pay around 45c/share. So if you buy it two weeks before the ex-dividend date (I think that was yesterday) then your position will show a loss for approximately two weeks - but of course you'll have the 45c/share dividend. All shareholders get the exact same dividend no matter how long they've held the etf.

ohwut

Of course you’re not going to get a month’s worth of return for 2 weeks of investment. SGOV isn’t a savings account so you need to understand how bond ETFs work. Very ELI5. Every month the underlying bond yield is added to the ETF price daily. Lately that’s ~$0.45 per share. At the end of the month the fund pays the interest it earned on bonds as a dividend. Dividends decrease the share price by their amount. So theoretically you’re earning around $0.45 per $100.30 (the base share price of SGOV which will also change based on the underlying bonds value) so ~0.45% per month per share owned that’s 5.4% per year. If you buy mid-month the first 2 weeks of interest have already been added to the share price so you’re not getting that yield.

RightYouAreKen1

SGOV hasn’t paid its monthly interest yet. Its pay date is May 7th. That $50 you got must have been from the time you had funds in your sweep position (money market most likely).

SirGlass

>Therefore could I buy SGOV each month on the drop after ex-div and sell just before ex-div, to effectively take the income tax free? Or am I completely misunderstanding/overlooking something? I am not exactly sure if the price rise counts as capital gains or intrest but even if it counts as capital gains well you would be taxed at a short term capital gain rate what is basically income and presumibly be subject to state taxes as well So unless you have losses to offset the gains it would not really be tax free?

TheLastLostOnes

Noob question regarding $SGOV dividend Apologies for this, just looking for clarification. I purchased $sgov throughout the first two weeks of April. I understand that it “drops” every first of the month and this is equivalent to the dividend payout. My question is am I entitled to any dividend payout today (may 1st)? Or does the position need to be held for over a month and my first payout for my April purchases would be June 1st? My account balance reduced due to the SGOV drop, but I did not get any dividend payout. Thanks for any insight.

Affectionate_Law3788

Even then unless the crash was towards the beginning of that 12 months, it wouldn't make that big of a difference. Given interest rate levels though, I can see a serious argument for dumping it all into SGOV or a similar ETF and then DCA evenly over 12 months. That way the money is still earning 5% while it's "sidelined". (Also while RH gold gives you 5% now, I think the govt. bonds 5% is superior for the state tax benefits) 

taplar

The oscillations of SGOV looks to on average be in the 0.30 to 0.50 range. And it's price is currently in the $100 range. So if you had $1,000,000 you could by about $10,000 shares, which on oscillation would then get you around $3,000 to $5,000 gain. That's a 0.3% to 0.5% gain. That's not even a 1% gain. You can easily get more gains just from normal market fluctuations with most equity investments. What you're describing may work, but I highly doubt it is worth the effort when compared to other things.

thecyclops13

Is it a better option than SGOV?

mdatwood

Yeah, OP needs to understand their state tax situation. There's also SGOV which is where I put a large some of cash between properties last year.

catclemenza

Buy one month treasuries in your brokerage account. If you don’t wanna do that buy SGOV. These options are better than money markets because they aren’t state taxable.

itscurt

SGOV

totosea

Easiest - HYSA, FDIC insured. More tax efficient (no state tax) - T-bills, treasury fund or etf like VUSXX, SGOV.

TequilaTrader

Pay off bills then put your tax portion in SGOV. spend some frivolously

Parallaxxer

The only thing you should be buying is $SGOV

Tiny-Dick-Respect

SGOV does it too. Just FYI

SirGlass

I am not sure what you are quite asking , there are ultra short term bond ETFs like SGOV (and others) that will return basically the same as short term 0-3 month treasuries currently its yeilding about 5.3% what will probably be better then most HYSA but remember this follows short term interest rates, if rates fall so will the interest generated by the fund

mmoney20

Not bad, lower risk. but if stock moons then leaving a lot on table with capital available. How would u net 50%? The premium collected is capped. Only growing in SGOV at 5% APR (divided time u hold). If stock keeps going up, ur gains capped around premium collected. Doesn’t SGOV require days to settle and if trade goes against u, broker force to close ur position?

value1024

"I could understand trying to get more yield by taking more duration risk and tying up in bills and running a longer short put campaign. Or paying the fees on BOXX or SGOV. Or using a box spread. Or getting poor margin/EOD pricing on **SPAXX**" Right ; ) Sorry too much going on right now but you get it, and you know I get it. Cheers!

OurNewestMember

I didn't expect you to double down on arguments about puts being expensive when they usually cost less than calls in nominal and real terms for retail (I assume that's what you mean by "See equidistant extrinsic values for a call and a put. See the difference?" -- which wouldn't have to do with puts because you can see the extrinsic difference in ITM calls vs OTM calls and similar for puts vs puts -- it's not specific to puts, hence my comment about call-put parity) Here's an example: * 7 DTE SPY -16-delta OTM put (spot at 509, strike at 498) 0.95/sh for IV of 16.32% * collect 1 week interest on $49.8k cash deposit * best offer on $49k notional of 8-day T bill is 99.919 (yield 4.166%) * I could understand trying to get more yield by taking more duration risk and tying up in bills and running a longer short put campaign. Or paying the fees on BOXX or SGOV. Or using a box spread. Or getting poor margin/EOD pricing on SPAXX, etc * +$47.75/7 days if you can get 5% APR * 7 DTE SPY 84-delta ITM call (498 strike) 1.48/sh extrinsic (about 12.93/sh total premium) * share should accumulate about 7 days of dividend (about $12.78/round lot/7 days) * $53/contract excess extrinsic to the put * bid-ask spread is like 0.08/sh, so we might subtract $1-$2/contract as a liquidity fee Market data suggests you'd make $17/week extra with the covered call with fewer transactions and less duration risk ($148 + $12.78 - $1) - ($95 + $47.75) (ie, "You are unlikely to collect more interest on the put premiums than you would on the shares + call premium.") -- that's why I didn't expect a double down on the "puts are expensive" concept, lol. Bonus points for figuring out why this is the case for retail traders. And thanks on the cake day. It was a nice day, lol.

TheLastLostOnes

Buy SGOV with emergency fund

Affectionate_Law3788

God I hate always being right. *Me over here sitting on a pile of SGOV*

albertwh

SGOV only holds bonds that mature within three months. If interest rates were to fall next year, you'll start earning much less. With a five-year horizon, I don't think it's the best way to take advantage of current rates. Personally yes, I'd recommend (and I do) buying treasuries direct through a brokerage account. You can also use tools there to set up a ladder of treasuries with variable lengths. In general bond ETFs can be volatile, and may not be as "safe" as you want, while buying and holding treasuries to maturity has a guaranteed return (and a tax benefit in the US). This volatility should be less pronounced for a short-term bond ETF like SGOV, but you don't lock in current rates that way for long.

MoneyTalksAMZ

Seems this is the majority vote here. I’ve been seeing a decent amount about SGOV. I assume buying treasuries direct is better than the ETF, due to expense ratio?

wild_b_cat

Are you planning on holding SGOV anyway? Is holding a large position in that part of your normal plan?

Relevant_Ad1494

SGOV until you decide! Then SPY. RSP. DIA until december

er824

Why would you do this? I guess if you have other long term capital gains this would let the losses apply to you SGOV dividends instead of you LTCG?

warrene00

He should Put that shit in SGOV and pocket his risk free $800,000 per month. I could probably live on that

kiwimancy

SGOV is a fund that buys 3mo tbills, not a bond. You only need to buy it once.

kiwimancy

> sgov vs 5% APY. Are there tax implications? > Sorry I am a bit new so I hope i don't get a bunch of downvote. > > I recently read about SGOV 0-3 month bonds. I also read bonds are tax exempt. How does it work? > > If I buy $100/share sgov and wait 3 months they return my $100 + interest? is that how it works? And supposingly it will out perform 5% APY cash sweep saving account and on top of that my earnings from bond are tax exempt? Treasury bonds are not fully tax exempt. They are exempt from state/local tax. SGOV should slightly outperform your 5% sweep since it holds bills with ~5.5% yield minus 0.07% expenses.

Valkanaa

By some metrics 2022 as well, wasn't the S&P down around 18%? Will we have another one? Sure at some point. Assuming these rate cuts materialize probably not in the near term. To protect yourself consider pivoting some of your portfolio into recession "resistant" stocks. Healthcare, Insurance, Defense, etc. Right now a T-bill pays > 5. Stick some cash into something like SGOV so you can flip it into whatever cheap buying opportunity comes later

meshreplacer

SGOV is better. Lower expense ratio, higher AUM held vs TBILL. Very liquid I park my cash there for my short SPY PUT positions and i can immediately sell to cash to cover any assignment.

LanceX2

SGOV is amazing for emergency fund. Otherwise put that money into VTI.

InvisibleEar

I was defeated by JPow and sold a brutal 50% loss on solar...I think it's SGOV time for me...

Chonan_Akira

Some T-bill ETFs: SHV, CLTL, BIL, SGOV, GBIL Look for a low expense ratio.

Kshowbiz

Unfortunately I’m at Robinhood, recent change for their 3% match. So I don’t have access to any mutual funds. So SGOV may be my go to.

Chonan_Akira

With Vanguard, the settlement fund is VMFXX (money market mutual fund) which is paying 5%+ interest. Vanguard automatically sweeps cash into it. You could keep your cash in a money market fund or a T-bill ETF like SGOV to earn around 5% now. It might slow down your ability to make fast transactions with that cash though.

Kshowbiz

I always have a small cash position in my IRA’s to take advantage of any downturns, but right now my cash is earning nothing. Does anyone have an opinion on keeping that cash in something like SGOV, VUSB, or CLIP?

Tiny-Dick-Respect

SGOV is giving 5% div without any downside at all

Vast_Cricket

Sitting on a pile of cash with HYI works for many. SGOV is great for those paying high state tax.

Chemical-Dog-271

Are you using SSO alone or you mitigating with bonds or SGOV?

Grunblau

Buy around the first of the month when it comes back around 100. Then just hold for distributions every month. Get out when you think they might start cutting rates. Have more than half of my cash in SGOV.

Fancy-Fish-3050

I keep some of my cash in iShares Floating Rate Bond ETF (FLOT) and it gives a little more yield (5.77%) than USFR and SGOV, but FLOT does have a little more credit risk. FLOT is still mostly A and above (greater than 90%) though so I feel alright with it for some of my cash.

rammerjammin

Correct. I want to leave my TSP at 100% C Fund. I have a Roth IRA full of SGOV that I can liquidate and put into whatever. Possibly SCHD. Was maybe thinking a targeted ETF too like FTEC or FENY. Have a brokerage as well. Was thinking about blowing it all on 0DTE SPY options 🤠

rammerjammin

I don’t usually keep money in treasuries. Just using SGOV as a HYSA since it has higher yields and is exempt from state and local taxes. I’ll move the money to an all equity ETF soonish hopefully.

rammerjammin

I have nothing but SGOV and SOXQ in my taxable brokerage. I have strictly SGOV in my Roth as well that I’ve been maxing out for the past few years. I’m going to sell SGOV eventually obv but I’m scared of the market at the moment. I would hate to dump it all into a growth fund tomorrow and then the market dump 25%.

charly371

SGOV

the_leviathan711

Saw elsewhere in the thread that you're not in the US - which unfortunately means I-Bonds aren't an options (at least I don't think). So I think USFR or SGOV is your best bet then. For what it's worth, feel free to check out [this backtest](https://www.portfoliovisualizer.com/backtest-portfolio?s=y&sl=02YjVKdYY3t4PzJ0Zgysr) since 1996 of either of the two savings portfolios with equities I suggested. Neither of them are risk-free, but they are both *much* more stable than a 100% equities portfolio and also both much more lucrative than a 100% T-Bills portfolio.