What is it exactly? Looking in etfs and came across this one and people says it acts like a high yield savings account. But I’m more confused on it and what it is exactly so if someone could give me a more depth awnser that would be great!
In: Economics
A HYSA is thru a bank or credit union and in America is federally protected up to $250k per account:
If you open up a Vanguard, Fidelity, etc. account, the money you transfer in but don’t invest sits in a money market fund, which is invested into US treasuries and pays interest (well, dividends).
SGOV is a type of ETF that also tracks US treasuries, it is basically the same as the money market fund but may pay a smidge higher and it is not something your unvested money is automatically put into.
As with money market funds and treasury ETFs, if you want your money you need to sell and transfer out, which can take 1-3 business days usually. As such, for real ASAP emergency funds I would recommend you keep some in a bank/CU where you also have a checking account, as transfers between internal accounts is usually instant.
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