If Rates Rise, Make a Dash to Cash With This ETF
Recent data indicate approximately $8 trillion sits in money market accounts and funds. That sum staggers, when considering how well equities have performed this year.
VIDEO: ETF of the Week: CSHI
On this episode of the “ETF of the Week” podcast, VettaFi's head of research, Todd Rosenbluth, discussed the NEOS Enhanced Income 1-3 Month T-Bill ETF (CSHI) with Chuck Jaffe of Money Life. The pair discussed several topics related to the ETF, in order to give investors a deeper understanding of it.
ETF of the Week: NEOS Enhanced Income 1-3 Month T-Bill ETF (CSHI)
VettaFi's Head of Research Todd Rosenbluth discussed the NEOS Enhanced Income 1-3 Month T-Bill ETF (CSHI) on this week's “ETF of the Week” podcast with Chuck Jaffe of “Money Life.” For more news, information, and analysis, visit the Tax Efficient Income Content Hub.
ETF of the Week: NEOS Enhanced Income 1-3 Month T-Bill ETF (CSHI)
VettaFi's Head of Research Todd Rosenbluth discussed the NEOS Enhanced Income 1-3 Month T-Bill ETF (CSHI) on this week's “ETF of the Week” podcast with Chuck Jaffe of “Money Life.” For more news, information, and analysis, visit the Tax Efficient Income Content Hub.
CSHI: Solid T-Bills And Options ETF, Positive Spread To T-Bills, Solid Track-Record
CSHI focuses on t-bills with a small allocation to S&P 500 put option spreads, offering a 5.0% yield and low volatility. The ETF provides slightly higher income and risk than t-bills. Small losses can occur during particularly severe downturns. There have been small, temporary losses in the past, none lasted for more than a month.
CSHI: Superior Return In The Ultra-Short T-Bills Segment
The NEOS Enhanced Income 1-3 Month T-Bill ETF offers exposure to ultra-short U.S. government bonds with an option overlay strategy to enhance investors' returns. CSHI could be a good opportunity to hedge market volatility caused by macro- and geopolitical uncertainty, an unclear monetary policy path, and record tech valuation. CSHI provides a superior dividend yield among its alternatives, with the potential to generate up to a 5% return over the next 12-month investment horizon.
CSHI: Enhanced Cash Yield
NEOS Enhanced Income 1-3 Month T-Bill ETF offers enhanced monthly income by combining T-Bill exposure with active S&P 500 put credit spreads. CSHI maintains at least 80% in 1-3 month T-Bills, minimizing interest rate sensitivity and providing a risk profile above cash but below equities. The ETF's 4.82% distribution rate largely tax-efficient ROC make it attractive for investors seeking enhanced cash alternatives and tax deferral.
CSHI VS. SGOV: Moving To A Higher Yield As Rates Fall
I have favored the iShares 0-3 Month Treasury Bill ETF as my primary cash park, but falling rates are eroding its yield. SGOV's yield has declined to a 30-day yield of 3.69%, with further downside expected as the Fed Funds Rate trends lower, possibly below 3% by mid-2026. Enhanced yield options, such as the NEOS Enhanced Income 1-3 Month T-Bill ETF, now merit consideration, offering a 4.82% yield with less volatility than other enhanced funds.
How to Maintain Decent Cash Yields as Interest Rates Decline
After a few years of enjoying eye-catching interest rates on CDs, money markets, and high-yield savings accounts, investors who like to stash some cash need to confront the reality that those previously impressive yields will decline as the Fed lowers interest rates. Currently, the average high-yield savings account yields between 4.20% and 4.30%.
CSHI: Alternative Strategy For Exposure To The Short End Of Yield Curve
NEOS Enhanced Income 1-3 Month T-Bill ETF offers exposure to short-term T-Bills with enhanced income from S&P 500 put option strategies. CSHI provides a robust 5.12% forward yield, monthly distributions, high liquidity, and a low 39bps expense ratio, making it suitable for fixed income or an alternative to money market funds. The ETF's unique approach combines T-Bill stability with equity option income, but investors should consider risks from Fed rate changes and market volatility.
Mind the Cracks: Invest for Uncertainty With CSHI
June's CPI print revealed heating inflation in a number of tariff-sensitive sectors. While consumers remain surprisingly resilient, uncertainty lingers as to the path of tariff-driven inflation in the months to come.
VIDEO: ETF of the Week: CSHI
On this episode of the “ETF of the Week” podcast, VettaFi's Head of Research Todd Rosenbluth discussed the NEOS Enhanced Income 1-3 Month T-Bill ETF (CSHI) with Chuck Jaffe of Money Life. The pair discussed several topics related to the fund to give investors a deeper understanding of the ETF overall.
