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Why Would We Use a Particular Instrument?
Well, the reason why we'd use a particular tool or instrument is likely intimately bound up with the design of that tool or instrument. What was it created to do? If that's something we also
TBLL: An Excellent Parking Lot For Spare Money
Summary
- TBLL is best used as a short-term parking place for cash, offering safety, liquidity, and modest income with minimal credit and interest rate risk.
- The ETF closely tracks short-term US Treasuries, providing near-zero credit risk and low interest rate risk, making it suitable for capital preservation.
- Management fees are reasonable, trading liquidity is sufficient for retail investors, and spreads are minimal, making the Fund cost-effective for its intended use.
- I do not recommend TBLL for long-term core portfolio holdings, but it fits well as a liquidity tool or interim holding in a balanced portfolio.
Tim Worstall is a wholesaler of rare earth metals and one of the global experts in the metal scandium. He is also a Fellow at the Adam Smith Inst in London and an writer for a number of media outlets, including The Times (London), Telegraph, The Register and even, very occasionally indeed, for the WSJ. This account is linked with that of Mohamad Machine-Chian: https://seekingalpha.com/user/52914142/comments
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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