Bonds appear poised for a big year with rising interest rates and struggling equity markets. I was wondering if anyone has considered investing into SWVXX or some related fund.
These fund work by investing in government treasuries and other cash secured assets to maintain your principal value and pay monthly interest. In other words, there is no way for your investment to lose nominal value. SWVXX is currently yielding 4.27% which will likely only increase throughout 2023 (>5%).
Is there a reason not to invest heavily in this fund? Interested in getting your thoughts.
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