I have about 16% of my portfolio in Cash and I want to park it somewhere very conservative for a year or two. A HYSA is trending around 0.85%, and VUSXX shows about 0.79%. I noticed that a 1 year Treasury Bill is in excess of 2%, which crushes the rate of any 1 Year CD I can find. 3 Questions:
- What’s the catch with TBills? Why does a TBill offer such a better rate than a 1 Year CD when both have the lockup?
- Why is VUSXX so far behind the TBill? Will it ratchet up over the shirt-term and catch up due to the average maturity being ~30 days?
- It seems like out of the options I should park it in TBills (assuming I have my emergency fund of 6 months in a HYSA already). Thoughts?
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