SHV: 2 Ways To Beat The Cash Parking 5.1% Yield

Summary

  • iShares Short Treasury Bond ETF holds treasury securities maturing in a year or less, tracking the ICE Short US Treasury Securities Index.
  • With a 5.07% yield and minimal duration and credit risk, SHV is a suitable option for cash parking.
  • We go over two ways that you can do better, but that will depend on what exactly you are parking that cash for.
  • Conservative Income Portfolio members get exclusive access to our real-world portfolio. See all our investments here »

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iShares Short Treasury Bond ETF (NASDAQ:SHV) holds a portfolio of treasury securities maturing in a year or less. This fund is a passive vehicle that chooses at least 80% of its portfolio from the ICE

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This article was written by

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Trapping Value is a team of analysts with over 40 years of combined experience generating options income while also focusing on capital preservation. They run the investing group Conservative Income Portfolio in partnership with Preferred Stock Trader. The investing group features two income-generating portfolios and a bond ladder.

Trapping Value provides Covered Calls, and Preferred Stock Trader covers Fixed Income. The Covered Calls Portfolio is designed to provide lower volatility income investing with a focus on capital preservation. The fixed income portfolio focuses on buying securities with high income potential and heavy undervaluation relative to comparatives. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of SU:CA either through stock ownership, options, or other derivatives. 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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