SHV vs. Cash, I am sure this has been covered 1000 times

[Cortopassi]

HI,

I have setup a couple PPs, one in an IRA, where SHV is available and one in a 401k, where no short term treasuries are.

The 401k by default, the cash is sitting in a TD Ameritrade Money Market.

The IRA, I'm not sure I am clear in reading some of the other posts.  I can leave it as straight cash (IB leaves as cash, 0%), or buy SHV with a .14% expense ratio and 0% yield.

Why would I buy into SHV for a negative return if leaving in cash is zero?  Is it really for safety?  Don't I then also have the potential iShares failing issue?  As is, IB covers cash in accounts up to 250k (I am nowhere near this).

Thanks,

Mike

[SteveGo]

If by "IB" you mean Interactive Brokers, you can by any marketable US Treasury there. I have done it. The bid ask spread is at the market, and the commission is small, $5-$10. One idea would be to construct a short term ladder with bills and notes. That is what I am doing.

If you were not talking about Interactive Brokers, then never mind...