I don’t understand how to hold these - if I buy BIL today do need to I wait three months before I can sell to receive a dividend? And, if your portfolio is 90% cash as mine is, is it safe to stick it all in a TBill etf for a short period? Eg for the remainder of 2023?
You receive a dividend from an ETF by holding it, not selling. BIL, for example, typically pays monthly. T-bill funds are safer than other assets like stocks and longer term bonds, yes, but technically there's no guarantee of a positive return. I can't tell you what a good strategy for your personal situation is.
Are there default risks due to the ETFs being provided by companies/brokers? For example, if I buy BIL from SPDR, what if SPDR somehow goes out of business? Do I lose my money because it was in their BIL ETF?
Great question. Nope, you still own the stuff inside BIL. Depending on the exact proceedings, that stuff is either left in your account or it's liquidated at its fair market value and you receive cash.
How do you know the dividend schedule on these ETFs? Also, if you hold for say 1 week, will you still receive a divvy for the week you held or is there a minimum hold time. Thanks for the helpful video!
I am currently parked in my account with Interactive Brokers which pays Fed fund minus 0.5%. Should it be better move to BIL even with dividends taxed at 30% for international investors?
@@OptimizedPortfolio But the price does fluctuate with dates of maturity. I'm thinking to use it as 2nd level for emergency funds. 10K in the bank and 15K in SGOV.
@@RusBuffet Same answer. It's just a more expensive version of the same thing. Splitting hairs: www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=2&startYear=1985&firstMonth=1&endYear=2023&lastMonth=12&calendarAligned=true&includeYTD=false&initialAmount=10000&annualOperation=0&annualAdjustment=0&inflationAdjusted=true&annualPercentage=0.0&frequency=4&rebalanceType=1&absoluteDeviation=5.0&relativeDeviation=25.0&leverageType=0&leverageRatio=0.0&debtAmount=0&debtInterest=0.0&maintenanceMargin=25.0&leveragedBenchmark=false&reinvestDividends=true&showYield=false&showFactors=false&factorModel=3&portfolioNames=false&portfolioName1=Portfolio+1&portfolioName2=Portfolio+2&portfolioName3=Portfolio+3&symbol1=SGOV&allocation1_1=100&symbol2=BIL&allocation2_2=100&symbol3=TBIL&allocation3_3=100
@@OptimizedPortfolio Thanks, dude. According to your link, TBIL is a good performer, but BIL is good also. Maybe, I'm not seeing that "more expensive version" thing here. So, say if I'd like to get some treasuries ETFs for short-term cash parking, splitting 50/50 between TBIL and BIL, or TBIL and SGOV - is a good idea?
@@RusBuffet Past performance doesn't indicate future performance. It's splitting hairs. They're all basically the same thing. That's why I'd just go with the lowest fee which is SGOV. You're overthinking it; no need for multiple funds.
If I wanted to park cash for a longer period of time (in a cash equivalent option), would a T-Bill ETF still yield the same down the road if interest rates come down? If I'm getting a 5% yield today on something like SGOV when interest rates are high, will my yield change/drop holding the same shares when rates come down? Or is my yield locked in?
@@OptimizedPortfolio Thank you for connecting these dots for me! I think you deserve alot more subs/attention from how well explained you and your videos are, you are very helpful to say the least! Appreaciate you
These expense ratios are too big. Buy XHLF. Longer duration (0.5) but much lower expense ratios. You should only be buying these instruments to store your six-month emergency fund.
Updated video here: th-cam.com/video/qq3Bdm9pCeQ/w-d-xo.html
Thanks for the tip on CLTL. The low fee is nice and has just the right maturity range for my taste.
Thanks for watching, Jesse!
Circling back here, you may be interested in a new ETF comparable to T-bills that I recently covered: th-cam.com/video/9Zyv8G_R-3g/w-d-xo.html
1:23 Times when T-bills outperformed stocks: (1929-1943, 1966-1982, 2000-2012)
2:11 SHV (iShares)
2:36 BIL (SPDR)
3:03 GBIL (Goldman Sachs)
Thanksss
Good info, however if you close with all the facts on one page in a grid format chart it would be much easier to make a decision.
Thanks for the suggestion!
Should I buy straight from treasury direct or use these etfs?
Up to you. Depends on purpose, your desire for simplicity and avoiding friction, etc.
I don’t understand how to hold these - if I buy BIL today do need to I wait three months before I can sell to receive a dividend? And, if your portfolio is 90% cash as mine is, is it safe to stick it all in a TBill etf for a short period? Eg for the remainder of 2023?
You receive a dividend from an ETF by holding it, not selling. BIL, for example, typically pays monthly. T-bill funds are safer than other assets like stocks and longer term bonds, yes, but technically there's no guarantee of a positive return. I can't tell you what a good strategy for your personal situation is.
Are there default risks due to the ETFs being provided by companies/brokers?
For example, if I buy BIL from SPDR, what if SPDR somehow goes out of business?
Do I lose my money because it was in their BIL ETF?
Great question. Nope, you still own the stuff inside BIL. Depending on the exact proceedings, that stuff is either left in your account or it's liquidated at its fair market value and you receive cash.
@@OptimizedPortfolio Wow, great to hear. Thank you.
@@Discovery_and_Change Anytime!
How do you know the dividend schedule on these ETFs? Also, if you hold for say 1 week, will you still receive a divvy for the week you held or is there a minimum hold time. Thanks for the helpful video!
There are plenty of websites that show dividend history of funds. Must hold til the ex date which is monthly in the case of SGOV.
What about the etf TFLO?
th-cam.com/video/Wh7X0XRlry8/w-d-xo.html
I am currently parked in my account with Interactive Brokers which pays Fed fund minus 0.5%. Should it be better move to BIL even with dividends taxed at 30% for international investors?
Thanks for watching! Just comes down to yield vs. fees.
Please outline with of these or alternatives for your U.K. Investor viewers? Thank you
Not sure. Sorry, Max.
Should I diversify my Tbil ETF or just go all in one ETF
No need for multiple.
With a T Bill ETF, is the interest still exempt from state income taxes? Or do you have to buy individual T Bills for that benefit?
Still exempt.
Circling back here, you may be interested in a new ETF comparable to T-bills that I recently covered: th-cam.com/video/9Zyv8G_R-3g/w-d-xo.html
Is there a better time of the month to buy SGOV?
No
@@OptimizedPortfolio But the price does fluctuate with dates of maturity. I'm thinking to use it as 2nd level for emergency funds. 10K in the bank and 15K in SGOV.
@@LGpi314 Interest accrues during the month and is paid out first of the month.
Is the interest earned taxable??
Yes. Because of that, you may be interested in my newest video on how to possibly avoid that taxation: th-cam.com/video/9Zyv8G_R-3g/w-d-xo.html
Not in an IRA? @@OptimizedPortfolio
Hey dude, what about ticker TBIL ??
Newer, more expensive, low AUM, higher turnover.
@@OptimizedPortfolio And nowadays, is TBIL a good choice? Return ratio is almost as good as SGOV and better than BIL
@@RusBuffet Same answer. It's just a more expensive version of the same thing. Splitting hairs: www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=2&startYear=1985&firstMonth=1&endYear=2023&lastMonth=12&calendarAligned=true&includeYTD=false&initialAmount=10000&annualOperation=0&annualAdjustment=0&inflationAdjusted=true&annualPercentage=0.0&frequency=4&rebalanceType=1&absoluteDeviation=5.0&relativeDeviation=25.0&leverageType=0&leverageRatio=0.0&debtAmount=0&debtInterest=0.0&maintenanceMargin=25.0&leveragedBenchmark=false&reinvestDividends=true&showYield=false&showFactors=false&factorModel=3&portfolioNames=false&portfolioName1=Portfolio+1&portfolioName2=Portfolio+2&portfolioName3=Portfolio+3&symbol1=SGOV&allocation1_1=100&symbol2=BIL&allocation2_2=100&symbol3=TBIL&allocation3_3=100
@@OptimizedPortfolio Thanks, dude. According to your link, TBIL is a good performer, but BIL is good also. Maybe, I'm not seeing that "more expensive version" thing here. So, say if I'd like to get some treasuries ETFs for short-term cash parking, splitting 50/50 between TBIL and BIL, or TBIL and SGOV - is a good idea?
@@RusBuffet Past performance doesn't indicate future performance. It's splitting hairs. They're all basically the same thing. That's why I'd just go with the lowest fee which is SGOV. You're overthinking it; no need for multiple funds.
If I wanted to park cash for a longer period of time (in a cash equivalent option), would a T-Bill ETF still yield the same down the road if interest rates come down? If I'm getting a 5% yield today on something like SGOV when interest rates are high, will my yield change/drop holding the same shares when rates come down? Or is my yield locked in?
T-bills will reflect changes in rates quickly.
@@OptimizedPortfolio Would a longer dated vehicle like TLT still provide the higher yield when rates come down?
@@ImBeneficial Yes.
@@OptimizedPortfolio Thank you for connecting these dots for me! I think you deserve alot more subs/attention from how well explained you and your videos are, you are very helpful to say the least! Appreaciate you
@@ImBeneficial Thanks for the kind words! :)
These expense ratios are too big. Buy XHLF. Longer duration (0.5) but much lower expense ratios. You should only be buying these instruments to store your six-month emergency fund.
Thanks for sharing!
Bill Etf's feels like applying vaseline on my S, They are still F me, but at least I suffer less..
Not sure what that means but I like it. Thanks for watching!
@@OptimizedPortfolio LOL