"SGOV holds U.S. Treasury bills with maturities of three months or less, designed to hold cash in a form that earns the prevailing short-term government yield while keeping principal intact."
"The fund collects interest on rolling T-bills and passes it to shareholders as monthly distributions, with a yield that closely tracks the federal funds rate."
"Because maturities never exceed three months, interest rate risk is near zero, allowing the portfolio to reprice almost immediately as bills roll over."
"Monthly distributions have varied significantly, with payments climbing from as low as $0.0018 per share in early 2022 to over $0.45 per share by mid-2024."
SGOV is an ETF that holds U.S. Treasury bills with maturities of three months or less, designed to provide safety, liquidity, and yield. It earns interest on rolling T-bills and distributes it monthly to shareholders, with a current yield of 3.6%. The fund has $75 billion in net assets and minimal interest rate risk due to its short duration. Monthly distributions have varied significantly, reflecting changes in the federal funds rate, with recent payments showing a decline due to rate cuts.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]