TLH - SGOV's 5% Yield Is Dropping Soon I'm Locking In My Rates Now (Downgrade)
2024-03-28 21:16:54 ET
Summary
- Conservative investors have been favoring the iShares 0-3 Month Treasury ETF, which pays out a yield of 5%+.
- With the Fed proclaiming "peak rates" this month, the future of rates is uncertain and likely lower.
- Lower future rates make fixed-rate investments like CDs more attractive than SGOV if the Fed is to be believed.
- In this article, I discuss why I am downgrading SGOV to a "buy" from "strong buy," and why I am locking these high yields with CDs instead.
Introduction
Recently, I have been writing a lot about macroeconomics. This has always been an area of study for me, but shifting my attention away from exchange-traded products ("ETP/s") has changed my outlook on products I have previously recommended, like the iShares 0-3 Month Treasury Bond ETF ( SGOV )....
SGOV's 5% Yield Is Dropping Soon, I'm Locking In My Rates Now (Downgrade)