Look at the distribution history for SGOV. There is a mid December payout and the price is stable as it should be because the ETF holds very short treasury bills from 0 to 3 months. This is the most understandable bond etf out there and the only one that I hold because I understand the investment completely. There should be almost zero price change due to interest rate changes because SGOV is a very short term T-bill ETF. Nearly all of the price movement is related to the distribution of the T-bill interest.Thanks. I am saying that the sawtooth has shifted lower from ~100.20 to ~100.05...Rookie mistake. SGOV paid a 45 cent distribution last week. Fixed income ETFs always drop by the value of a distribution after it happens; then, their price slowly rises again back to what it was. If you look at the price chart for SGOV, it's a sawtooth: a distribution is paid, rapid price drop, then the price creeps back up. So, you didn't lose any money. SGOV is fine.Hi,
I have often kept my non-stock portfolio in cash, since the rates were low in the last decade it worked fairly ok as a strategy. In 2023 Oct, I decided, I would earn a short term 4-5% return and move my cash into SGOV ETF. It has swung between ~100.20-100.60. I expected that it would move lower when the Fed starts reducing the rates. However, I recently found that the low end started at 100.05. It appears currently that I would have been better off keeping that money in cash. Questions:
1. Are there some funds with low ER giving a pretty stable 3-4% return for my cash with little to no risk of losing value?
2. I understand that SGOV fell from 100.20 base to 100.05; however, I don't understand why that would have happened before the Fed actually moving the rates lower...
Thanks!
See the link below for distribution history.
https://stockanalysis.com/etf/sgov/dividend/
Statistics: Posted by smartinvestor2020 — Wed Dec 20, 2023 11:31 pm