r/BogleheadsAutre
How Common Is It For Short Term Treasuries to Pay a Higher Yield Than Money Market Funds
12 votes·8 commentaires·il y a 3mois
Contenu original
Spoke with my Schwab branch today and was asking about highest yields for my emergency fund. I am in SGOV and she was trying to get me to swap to SWVXX. She was trying to show me the yield and I guess SGOV is .2% higher yield currently than SWVXX. I would assume that a money market fund would typically have a higher yield than anything from the federal government? My understanding is an appeal for SGOV is the no state income tax advantage. How common is it for something like SGOV to pay a higher yield than something like SWVXX? Am I off base with my thinking?
Meilleur commentaire
“According to Morningstar SWVXX has TTM yield of 4.05% while SGOV is 4.10%. Close enough that I would make the decision based on other factors (such as taxes and convenience). To specifically answer your question: SGOV does tend to outperform competing funds, not because it is making better investments (t bills are t bills are t bills) but because it has lower fees. SGOV's expense ratio is only 0.09% which translates to more money in your pocket.”