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
sgov buys short term goverment treasuries; which is the same thing your bank does for a majority of its ability to pay you interest on your deposits.
youll find that the bank HYSA interest rates are usually slightly lower than the 3month treasurty rate (so the bank still profits)
owning treasuries directly is slightly more tax efficient; HOWEVER you can not access the money as quick or on weekends or bank holidays……so its not a great place for all of your cash or emergency fund
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