SHV - SHV: 2 Ways To Beat The Cash Parking 5.1% Yield

2024-07-21 21:31:38 ET

Summary

• iShares Short Treasury Bond ETF holds treasury securities maturing in a year or less, tracking the ICE Short US Treasury Securities Index.
• With a 5.07% yield and minimal duration and credit risk, SHV is a suitable option for cash parking.
• We go over two ways that you can do better, but that will depend on what exactly you are parking that cash for.

iShares Short Treasury Bond ETF ( SHV ) holds a portfolio of treasury securities maturing in a year or less. This fund is a passive vehicle that chooses at least 80% of its portfolio from the ICE Short US Treasury Securities Index. The index incumbents are chosen using the representative sampling methodology, which as noted in SHV's prospectus involves "investing in a representative sample of securities that collectively has an investment profile similar to that of an applicable underlying index ". The ETF has around $19.2 billion in net assets at last count, and its portfolio is made up of a little over 40 securities (all T-Bills) and cash....

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