US Bond ETFs for foreigners


Hi, with the weakening of USD, I have accumulated some USD in the past few weeks and am looking for ETFs to store this money with 100% liquidity and good price stability/predictability.

Background:

  1. I am a non-US person
  2. I pay 30% withholding tax on dividend
  3. I pay 0% capital gain tax
  4. My brokerage doesn't pay interest on idle money
  5. My bank offers fixed deposit at around 3% p.a. interest with 1-month lock-in

I chanced upon some mentions of Bond ETFs like FLOT, SGOV, BIL/S, CLTL etc. I look at their monthly price movement and they seem very predictable, e.g. a drop on ex-div date, then gradually go up over the month. This may suit my needs well — I will buy on ex-div and sell on eve of ex-div to avoid withholding tax, this gives me 100% liquidity, capital protection and a bit of interest from the idle money.

Currently these Bond ETFs are paying around 2%, will they increase in coming months since the treasury yields are already close to 4%?

Before I do it, is there anything else that I may have overlooked? Thanks!


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