SGOV

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.

Vivecs954

SGOV and USFR are the HYSA etf equivalents that give you more interest. I wouldn’t go for anything more aggressive than that because you might lose money over 2-3 years with anything more aggressive.

the_leviathan711

T-Bills or USFR or SGOV are probably the best for short term savings. I think Series I Bonds are great for medium term savings (minimum of 1 year). A 50/50 bonds/equities portfolio is also not a bad option for something like this, albeit a bit riskier. I would do 50% VT/50% GOVT. Or 34% SGOV/33% VT/33% GOVT.

THE_Tony_Perkis

You can buy and sell within the with account with no penalty. You can withdraw contributions without penalty, but no you can’t just put that money back in. You’re still subject to the 7K annual limit. It’s why most people only recommend a withdrawal as a last resort. I can’t speak to your third question about SGOV.

OakleyPowerlifting

So I know you can’t withdrawal gains from a Roth IRA until 59.5 and what not, but you can actively trade and buy/sell new stock with no penalty right? Only if you withdrawal funds? Let’s say I contribute $10,000 between 2022-2023 and it grows to $15,000, if I withdrawal $10,000 can I deposit that $10,000 back again or is the deposits still capped at $7,000 regardless of withdrawals? I’m also trying to decide if SGOV would be better in my Roth IRA or taxable brokerage. I know it’s only federal tax applied, but the dividends are ordinary income. Ideally I’d like to keep it liquid so taxable brokerage seems like a good idea, but is there a better tax advantaged option for taxable brokerage in that regard?

PmButtPics4ADrawing

Put the free $1000 margin in SGOV and you're only paying $1/month. Honestly not bad for a card with 3% back everywhere

meshreplacer

I like SGOV ETF great complement to hold cash for short SPY puts.

Big-Sheepherder-5063

Nope. No holdings currently, everything moved to money market, high yield savings account, or SGOV. Will likely start selling CSP’s again in a month or 2 assuming see a 10-15% drop.

OakleyPowerlifting

SGOV has no taxes at all in Roth IRA right? I was going to do taxable SGOV too since no state tax to treat it like a liquid money market account but my savings gets 4.6% atm so. It does seem like a good “buy and forget” stock for the Roth though

One_Sound8511

If you're wanting to wait until VIX comes down or the market seems to have more support levels, I'd invest in SGOV. It's safe, follows the U.S. dollar and it's 5% interest rate monthly.

OakleyPowerlifting

I need to at least max out mine my wife’s Roth IRAs this year, and I was wanting to do more, but what are yall thinking going into this possible market correction? I’ve been DCAing $150/wk per account to get the max contributions for each account, just into mainly VOO, SCHD, VEA, VWO, VTI, BB, SFYX, MSOS, VT, O, and a Fidelity Go account. People are suggesting putting my investing into a money market account or my 4.6% savings until we get lower, but not sure if SGOV in the Roth would be a good option or stay on track DCAing into my usual funds and ride it down. Open to any advice.

MomOnDisplay

I recently sold a bunch of dumb shit and put in SGOV. Thankfully most of my money is in HYSA, but that other 25% that's just cratering *every single day* would be fun to have a do-over on

McKoijion

You use the included margin to invest in SGOV or USFR.

TequilaTrader

Zero? Just buy SGOV

Floopsicle

If you’re a bullish trader like me, just dump your cash in SGOV and wait for the tides to calm down.

Thisod

Best treasury ETF to park $250-500k for 6 months or a year . Currently using VUSXX thru chase self deirected. Has Marcus savings accounts getting make 5.40% but tbe promo has ended and I’m back 4.4% USFR, SGOV ass what I’m located at rn. I’m unemployed atm and contributing to my self directed IRA thru chase

TheCriticalAmerican

I bought 20K in puts yesterday and 50K in SGOV. Perfect timing. I’m ready for the shit that’s about to come.

TheCriticalAmerican

I put $50K in SGOV and $20K in SPY $500 Puts yesterday. I'm ready for the shit storm.

Perfect-Resort2778

They pay a dividend every month. So let's say you have 10K, you will earn between $30-$40 a month. The fee is baked in. The only thing that really matters is the yield. These treasury EFTS don't pay much but they offer the most security you can get because like SGOV has been trading at around $100 per share through thick and think for nearly a decade straight. During Covid it actually went up a bit. What is good about these EFTS is that you have the security of investing in treasury bonds without the hassle. Buy and sell anytime you want just like a stock.

Maximum-Flat

Well SGOV time

SirGlass

SGOV yeild is about 5.11% The only way it would make sense to use leverage to buy is if you could somehow borrow for less then 5.11% (hint you can't)

SpergTrader9000

What if I traded a every penny, for instance 4000 shares = 40$ after every penny, imagine day trading and doing this around 10× a day netting 400$ a day. It would only take 200k to buy 4000 shares of SGOV if you do 2:1 leverage. Could you imagine how bad taxes or fees would be? Sounds like the money is too easy to be true.

BigSteve414

I do not recommend bonds at this time. If you need ballast for your equities, some say short treasuries or stuff like SGOV or BIL. I like my MM cash at >5% yield. Cash is 38% of my port right now, as bonds were killing me since 2020. Even TIPS,

DifferentSwing3149

I already have BND and SGOV. Just looking for a bit more income with maybe a small amount of growth.

Own_Masterpiece_1

Check out SGOV. IBKR UK should have those.

jlevy73

Correct, Hedgefundie basis assumed lower interest rates. As a result of interest rates climbing to 5.5%, 2022-2023 was bad. Switching out TMF for BIL or SGOV would be a smart move.

Signal-Sprinkles-350

I second SGOV and TFLO. My advice is buy them on the first day of the month, which is the ex-dividend date. That should be the lowest price they will be for the month. USFR is also good but it's ex-dividend date is the fourth Friday of the month.

Over-Boysenberry3413

Thank you for your comment. May I ask what happens to SGOV in case of a 2008 level market crash?

Perfect-Resort2778

Fear is good when it comes to investing. What that represents is a lack of trust. That is why you have to do due diligence and research into what you are investing. The fear goes away when you build trust in what you are buying and your own knowledge of investing. Good example, I don't trust the current stock market. Even with my experience I really can't nail down what is driving this stock market. Since I can't visualize direction I'm investing in what I know which is short term government treasuries. They are paying out 5% dividend. I have no fear because I'm investing in what I know and trust. If you can't trust the government then there is nothing you can trust. So, if you are fearful then invest in something that is low risk. There are ETFs you can buy. SGOV is one. These ETFs don't make much money but they are price stable even through stock market crashes. The other thing to do is buy 1 share of a stock that you think is a good buy. If it looses then no big deal. You will quickly learn what works and what doesn't. That is what builds confidence. Confidence is what kills the fear.

AbbreviationsFar9339

SGOV

Zenatic

All in SGOV or USRF or just HYSA, you could also just by a 9,6,or 3 mo t-bill. Or  8k in the above, the remaining in VTI/VOO if you are ok risking a little of the remainder (market may go down). I would not do any indvidual stocks with the 8k at minimum

BodaciousBaboon

SGOV or similar. Short term treasuries is what you want

Relevant_Ad1494

SGOV

Relevant_Ad1494

SGOV

perfectm

SGOV for short term, TLT for long term

ratedsar

1. Yes, it's too late for you to start 100% VOO with no existing principal; Most published asset allocations would have someone in their late 30s that has been saving in 10-20% fixed income (Bonds / CDs -- ETF: SGOV for short term treasuries) -- so with 0 existing principal to act as cushion, you now have to be more conservative. But you should start that 70-90% in broad low cost equity ETFs today, rather than tomorrow. 2. If you have $0 existing savings and don't have a lump sum yet, then Dollar Cost Averaging is not an option. Given you are behind on retirement, and don't have an asset allocation, you should contribute as much to your Roth IRA as you have on hand after meeting other obligations - but you should not target 100% VOO, you should target 70-80% VOO and the rest a bond ETF (like SGOV). 3. VOO is popular and simple; a. but provides no asset allocation; As you approach retirement, the idea of 100% equities as opposed to some fixed income (Bonds or Dividends) provides less return but less risk. b. Is also boring and less speculative; a fortune teller could have beat the market last year if you had invested in the top 4 companies only -- and that looks attractive - but you also have to be really good + lucky to not choose one a stock or sector underperforms -- if you had a vision of the future, you also could have invested only after June of last year, or avoided last Friday and Monday.

josephkelley7926

It does, I have another question if you aren't annoyed with me yet. Can I dca into crypto, since you can't use margin on crypto and use margin to buy SGOV in my brokerage? I can't huh, they will take from my available cash to dca the crypto? If that makes sense. I would have to stop having ANY money in my brokerage

prkskier

SGOV, since when you enable margin you don't earn the 5% on uninvested cash anymore. So it looks like this: $0 in cash $2200 of my money in SGOV $1000 of RH's margin in SGOV

josephkelley7926

You added a couple hundred more dollars in the SGOV stock or in your available balance?