SCHO: 2-Year Duration Treasury Fund, 3.7% Yield And Rising

Binary Tree Analytics
5.19K Followers

Summary

  • SCHO is a short duration treasuries ETF with an average holdings duration of 2 years.
  • SCHO has no credit risk, its holdings being entirely composed of Treasuries.
  • The fund now has a 30-day SEC yield of 3.7%, which is rising with the front end of the curve.
  • As the current bear market progresses, more investors have chosen to ride out the storm in cash.

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Thesis

TINA is now a moniker of the past excesses, while TARA has arrived. With the violent rise in yields in 2022, risk-free assets like Treasuries now offer significant returns. The Schwab Strategic Trust - Schwab Short-Term U.S. Treasury ETF (

This article was written by

5.19K Followers
With an investment banking cash and derivatives trading background, Binary Tree Analytics ('BTA') aims to provide transparency and analytics in respect to capital markets instruments and trades. BTA focuses on CEFs, ETFs and Special Situations, and aims to deliver high annualized returns with a low volatility profile. We have been investing for over 20 years after obtaining a Finance major at a top university.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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