iShares Short Treasury Bond ETF (SHV)
My Replacement For Cash: SHV
The iShares Short Treasury Bond ETF (SHV) is a low-volatility ETF holding short-term Treasuries, ideal for parking idle cash with a low expense ratio of 0.15%. SHV offers interest income on Treasuries, closely tracking short-term interest rates, making it a better alternative to traditional savings accounts. I use SHV to earn interest on idle cash, keeping my checking accounts low to avoid losing potential interest income. That's pretty much the whole purpose of these ETFs.
SHV: 2 Ways To Beat The Cash Parking 5.1% Yield
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.
