if you are stuck in a brokerage money fund, check the yieldtdai does 0.25% tops if you have 7 figures, less for other numbersBIL is an alternative - a good onehttps://us.spdrs.com/en/etf/spdr-bloomberg-barclays-1-3-mont...holds 1 to 3 month rolling treasuriesytm is currently 1.7%click on the NAV history21-Mar-2018 91.48023120-Mar-2018 91.47521519-Mar-2018 91.47135416-Mar-2018 91.46806815-Mar-2018 91.45698614-Mar-2018 91.45412113-Mar-2018 91.45436912-Mar-2018 91.45469309-Mar-2018 91.45380308-Mar-2018 91.4418207-Mar-2018 91.43899906-Mar-2018 91.4361605-Mar-2018 91.43371902-Mar-2018 91.43130501-Mar-2018 91.42302628-Feb-2018 91.49810527-Feb-2018 91.49352326-Feb-2018 91.49052323-Feb-2018 91.48741722-Feb-2018 91.47835421-Feb-2018 91.47298420-Feb-2018 91.46746916-Feb-2018 91.46430715-Feb-2018 91.45436714-Feb-2018 91.45187613-Feb-2018 91.44600612-Feb-2018 91.4440809-Feb-2018 91.44359608-Feb-2018 91.43548407-Feb-2018 91.43135806-Feb-2018 91.42916605-Feb-2018 91.42810902-Feb-2018 91.42797901-Feb-2018 91.418423what is does is up go up and then falls ex-dividendbut it mostly goes up each day as you would expect1.7 right now is $1.55, so up 11 to 13c each monthif short term rates go up, then this goes up toothis is a no brainer if you have a tda account where bil is also commission freeassuming you have semi-permanent cash levels where you are waitingbut it can make sense depending on the commission level too in a lot of accountsthere are other alternatives of coursebut these are treasuries - no worry (absent short-term issues with debt ceilings)just 2c - not a recommendation, but i would want to know about it
I'm missing something because when I look at the actual distributions for BIL I'm notseeing anything close to 1.7%. The 30-day SEC yield is 1.30% and the actual yield looks lowerthan that. Again, I'm probably missing something.What I've been doing is buying short-term treasuries on the secondary market throughFidelity no commission. Last month I got a two month term for an effective yield(annualized) of about 1.5%. I've been doing this for the last year or so at variousterms and rates. The purchases have held their value or risen a little through the term.Never tried to sell one. Just let them reach maturity and repeat.If there's a better way I'd be all Ears.Thanks.
i used to buy UST with the same goal - but I needed to be more liquid; USTs may still serve your purpose given no spread though BIL seems to trade halfway between the bid and ask on my trades, esp. if you can use odd lots; makes more sense if the ETF is commission free (it isn't at Schwab I know) re: the yieldif you notice in the link under fund characteristics the duration is .11 years - so things go out pretty quick; so as short-term rates have risen, so has the ytm on the USTs - so the figures you've quoted are backward looking (though the 1.7% doesn't given effect for the .14% expense ratio but if rates continue to rise you will get the benefit there; again, not perfect, but liquid and attractive relative to brokerage money funds. I'm using them as a 100% money fund substitute - obviously better in an IRA cause otherwise you can get wash sales with sales...
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