Treasury funds is one area where I'd consider a mutual fund instead. There is no spread on mutual funds at settlement. Also at Fidelity the short term cash equivalents (such as FDLXX) can auto-sell to settle cash needs such as withdrawals, transfers or stock purchases.
Thanks! Had to rearrange the house a bit so this seems to be my best/only option for now. I think I'd rather have a blank background for less distractions and so the visuals and text are easier to see, but we'll see how it goes.
i am a very appreciative subscriber. thanks for the effort and sharing. with the upcoming debt ceiling crisis, how do you imagine treasuries are going to be impacted? thumbs up.
@OptimizedPortfolio could you do a video covering international bond funds? What are the best options for total international bonds (e.g., BNDX, but is there an unhedged option?), emerging markets debt, and international treasuries?
We've got 60K in cash that we're unsure about investing in stocks due to potential recession, and may need to buy a new vehicle soon (cash) so I'm thinking SGOV may be good for us. Currently showing around 4.80% yield which is better than just sitting in savings at 0.05%.
Thanks for sharing, Matthew! I don't try to time the stock market, but I'd agree SGOV is a good cash equivalent comparable to a high yield savings account, particularly for a known short-term liability like a new vehicle. My mom is actually doing the same thing. She knows she'll need a new car in about 2 years and it's all in SGOV.
Thanks for the video! General question: is timing a bond-etf is even a thing? or it doesn't matter? I think that short duration bonds (like STIP or SGOV) are self-adjusting to interest rates and inflation, but what about long duration ones (like TLT or EDV) - is there a better market time (situation) to buy these? Thanks!
I want to purchase IEF cause 5 years average duration of VGIT seems too short and almost like a short term bond fund. But IEF is 0.15% expesne ratio and I can't get myself to purchase. Could do 75% VGIT & 25% VGLT but that's takes away some simplicity. So I stick with VGIT. < Can you believe this round & round argument is what goes on in my head the most in regards to finances for the past few years.
right now I'm thinking about ticker BND because it sounds safe, I'm trying to research more about bonds to balance out her portolio. It's all stocks currently, need to switch her contributions to adding bonds in from here on out. I was thinking of BND and TIP.
Bond funds usually aim to maintain a target maturity and are thus always buying new bonds and selling old ones. Thus the fund's yield changes. Also, supply and demand.
Idk if this is a weird question but if it says 0-3 month short term bond, does that mean I can only hold it for that long for does it matter how long I hold it
Not a weird question. That just means that's the maturities of bonds that fund holds. You can certainly hold the fund for as long as you want, longer than that time. The fund is buying and selling those bonds for you inside it.
Nobody can become financially successful over night. They put in background work but we tend to see the finished part. Fear is a dangerous component, hindering us from taking bold steps we need in other to reach our goals.
VGLT has a lower fee and over time it will cost less to own the etf. BUT, please understand where is your hard earned money is going. in march 13, this year a share of VGLT is $59.1. in November 13, today, a share is at $56.93. That's about 2% loss on your money and interest rate from VGLT hasn't cover that loss. good luck.
In the current interest rate environment, the yield on the short term funds beats the pants off the longer term ones. You could even find money markets that can out do the longer term funds. Not worth the increased risk. No need to go longer than SGOV or CLTL. I might also add floating rate treasuries like USFR or TFLO are worth a look.
This is an all-too-common misconception. Buying a bond of a duration shorter than your investing horizon is simply trading price risk for more reinvestment risk. When the yield curve reverts to normal, short bond yields will snap back to a much greater degree than long bonds, and when rates fall, long bonds' price risk will benefit much more due to greater convexity. twitter.com/choffstein/status/1641865921995104266
But if you can buy a short term bond etf now then sell it in 6 months when rates go down, then buy a long term bond etf which still has decent rates…why would you?
@@Sam-tb9xu If rates have already gone down when you sell, you've already missed the price boost of the longer bonds. This is why, just like with the stock market, we don't try to time the bond market either. This is also why we say, all else equal, to match bond duration to the investing horizon - to minimize interest rate risk.
What are your treasury bond ETFs of choice?
Hi, should I buy bonds or tbills looking to spend it annually in 1-4 yrs but cash has to be handy. It lies in my brokerage account.
@@Frank020 Sounds like a bond ladder might be ideal for you.
Treasury funds is one area where I'd consider a mutual fund instead. There is no spread on mutual funds at settlement. Also at Fidelity the short term cash equivalents (such as FDLXX) can auto-sell to settle cash needs such as withdrawals, transfers or stock purchases.
@@Frank020 Circling back here, you may be interested in a new cash equivalent ETF that I recently covered: ruclips.net/video/9Zyv8G_R-3g/видео.html
Love the new background!
Thanks! Had to rearrange the house a bit so this seems to be my best/only option for now. I think I'd rather have a blank background for less distractions and so the visuals and text are easier to see, but we'll see how it goes.
Outstanding!
Thanks, David!
Appreciate the content! Would SGOV be fine to hold in a taxable account? Is that where you hold yours?
Yes. Interest is federally taxable as income but state tax free.
Circling back here, you may be interested in a new cash equivalent ETF that I recently covered: ruclips.net/video/9Zyv8G_R-3g/видео.html
Great job explaining - TY
Thanks, Gary!
i am a very appreciative subscriber. thanks for the effort and sharing. with the upcoming debt ceiling crisis, how do you imagine treasuries are going to be impacted? thumbs up.
Thanks! No idea.
Thank you for just putting me on to these picks I have found only one but you really got me excited on these👌🏾
Glad I could help!
@OptimizedPortfolio
could you do a video covering international bond funds? What are the best options for total international bonds (e.g., BNDX, but is there an unhedged option?), emerging markets debt, and international treasuries?
Thanks for the suggestion!
We've got 60K in cash that we're unsure about investing in stocks due to potential recession, and may need to buy a new vehicle soon (cash) so I'm thinking SGOV may be good for us. Currently showing around 4.80% yield which is better than just sitting in savings at 0.05%.
Thanks for sharing, Matthew! I don't try to time the stock market, but I'd agree SGOV is a good cash equivalent comparable to a high yield savings account, particularly for a known short-term liability like a new vehicle.
My mom is actually doing the same thing. She knows she'll need a new car in about 2 years and it's all in SGOV.
Circling back here, you may be interested in a new cash equivalent ETF that I recently covered: ruclips.net/video/9Zyv8G_R-3g/видео.html
SGOV pays dividends monthly. How about the others?
Usually monthly
I'm currently holding SGOV for cash I intend to spend in under five years.
Thanks for sharing!
Circling back here, you may be interested in a new cash equivalent ETF that I recently covered: ruclips.net/video/9Zyv8G_R-3g/видео.html
Advantages of Bond-ETFs over CDs?
Thanks for the video! General question: is timing a bond-etf is even a thing? or it doesn't matter? I think that short duration bonds (like STIP or SGOV) are self-adjusting to interest rates and inflation, but what about long duration ones (like TLT or EDV) - is there a better market time (situation) to buy these? Thanks!
Yes, people try to time bond funds' response to interest rate changes, such as now going long on long bonds in anticipation of rate cuts.
Well done - TLT is a buy
Thanks for watching!
I want to purchase IEF cause 5 years average duration of VGIT seems too short and almost like a short term bond fund. But IEF is 0.15% expesne ratio and I can't get myself to purchase. Could do 75% VGIT & 25% VGLT but that's takes away some simplicity. So I stick with VGIT. < Can you believe this round & round argument is what goes on in my head the most in regards to finances for the past few years.
The thought process makes sense. Nothing to lose sleep over though.
What’s your opinion on international bond funds like JPIB?
I stick to U.S. treasuries.
Tks a lot. What is equivalent ireland-domicile etf for TLT or any 100% US govt bonds etf ? Tks
Not sure, sorry.
Must be laundry day for John or he got a new shirt 😊
Hah ;)
Do you have any insights on SPGP ETF? I like growth. SPGP is growth at reasonable price. I would appreciate if you could share your input.
Not sure. Probably just another naive factor fund.
which bond etf should my mom get in her IRA, she's 55 years old.
right now I'm thinking about ticker BND because it sounds safe, I'm trying to research more about bonds to balance out her portolio. It's all stocks currently, need to switch her contributions to adding bonds in from here on out. I was thinking of BND and TIP.
I can't provide personalized advice.
Good graphics
Thanks, Boris!
How about IBTF? Thx
Different product with set maturity date.
Why do bonds etfs have different returns in different years? Aren’t bonds supposed to have a fixed income?
Bond funds usually aim to maintain a target maturity and are thus always buying new bonds and selling old ones. Thus the fund's yield changes. Also, supply and demand.
What do you think about : AMUNDI US TREASURY BOND 10+Y UCITS ETF DIST
Not sure. Not a product for US investors.
I like SCHQ Long Term. Very low expense ratio.
Thanks!
Idk if this is a weird question but if it says 0-3 month short term bond, does that mean I can only hold it for that long for does it matter how long I hold it
Not a weird question. That just means that's the maturities of bonds that fund holds. You can certainly hold the fund for as long as you want, longer than that time. The fund is buying and selling those bonds for you inside it.
@@OptimizedPortfolio Okay thanks for answering!
@@ryanjamesr_ Anytime!
Can you buy and sell these bond etf as you wish?
Yes
BIL, TLT , EDV
Thanks for sharing!
TBIL pays out monthly. Never mentioned them.
ruclips.net/video/2V0dtUqHWXQ/видео.html
Have somebody study some back testing with this etf + sp500 o msci world? Thanks
What?
I have 1/3 of my portfolio in SGOV and BIL
Thanks for sharing!
Circling back here, you may be interested in a new cash equivalent ETF that I recently covered: ruclips.net/video/9Zyv8G_R-3g/видео.html
VGLT!
Thanks for sharing!
1924 USA treasury bond s
Great
Thanks for watching!
Nobody can become financially successful over night. They put in background work but we tend to see the finished part. Fear is a dangerous component, hindering us from taking bold steps we need in other to reach our goals.
totally
You are not giving ant retrn info on etf returns
1. Yield and return fluctuate.
2. Past returns do not indicate future returns.
3. One's choice of bond fund should not depend on its past return.
D'Amore Village
VGLT has a lower fee and over time it will cost less to own the etf.
BUT, please understand where is your hard earned money is going. in march 13, this year a share of VGLT is $59.1. in November 13, today, a share is at $56.93. That's about 2% loss on your money and interest rate from VGLT hasn't cover that loss.
good luck.
Lower fee than what? You realize VGLT is on my list at 04:27, right? And that it's long term bonds for 20+ years?
In the current interest rate environment, the yield on the short term funds beats the pants off the longer term ones. You could even find money markets that can out do the longer term funds. Not worth the increased risk. No need to go longer than SGOV or CLTL. I might also add floating rate treasuries like USFR or TFLO are worth a look.
This is an all-too-common misconception. Buying a bond of a duration shorter than your investing horizon is simply trading price risk for more reinvestment risk. When the yield curve reverts to normal, short bond yields will snap back to a much greater degree than long bonds, and when rates fall, long bonds' price risk will benefit much more due to greater convexity. twitter.com/choffstein/status/1641865921995104266
But if you can buy a short term bond etf now then sell it in 6 months when rates go down, then buy a long term bond etf which still has decent rates…why would you?
@@Sam-tb9xu If rates have already gone down when you sell, you've already missed the price boost of the longer bonds. This is why, just like with the stock market, we don't try to time the bond market either. This is also why we say, all else equal, to match bond duration to the investing horizon - to minimize interest rate risk.
Circling back here, you may be interested in a new cash equivalent ETF that I recently covered: ruclips.net/video/9Zyv8G_R-3g/видео.html