ValueMaven Posted April 20, 2019 Share Posted April 20, 2019 Assume you are sitting in 20% - 30% in cash due to valuations etc -- you are most likely getting a broker rate of literally 3bps to 5bps ... while the 3M bill is yielding over 2.2% !! Unless you are rolling over T-bills actively, most brokers are making risk-free money hand over fist right now. I dont want credit or duration risk (hence no closed end funds which were CRUSHED in 4Q) ... I've been looking at different ways to enhance my cash. It looks like I am going to move 75% of my cash into the SHV ETF - which is under 1yr duration, and only invests in UST. There is a FLOT etf - which moves with LIBOR, and is rated single-A in terms of credit with like a 0.40 duration -- but even still -- to much risk. I'd be open to see what others thing of this .. you always want some dry powered in case of a flash crash etc -- however I am tired of letting brokers make free money off my money!! -VM Link to comment Share on other sites More sharing options...
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