I'm new to the world of bonds having focused on equities for years now, but with all the talk of “5% risk-free” I decided to put some dead cash to better use.
I see a discrepancy in what bonds, specifically bond ETFs, appear to yield.
A 6-month treasury appears to pay 5.07%: https://www.bloomberg.com/markets/rates-bonds/government-bonds/us
ANGL is a “fallen angel” ETF which should hypothetically be higher risk and therefore higher return. It yields 4.5%: https://finance.yahoo.com/quote/ANGL/
SCHO is the Schwab Short-Term U.S. Treasury ETF. It yields 1.3%: https://finance.yahoo.com/quote/SCHO/
On the surface, this means that:
- A higher-risk bond ETF yields slightly less than treasuries
- A treasuries ETF yields 1/3 of a six-month government bond
Can someone please point out what I'm missing?
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