Fidelity - SHV BIL or TBILL ladder (auto roll)

Discussion of the Cash portion of the Permanent Portfolio

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ppnewbie
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Fidelity - SHV BIL or TBILL ladder (auto roll)

Post by ppnewbie » Mon May 20, 2019 3:59 pm

Any opinions on what to choose at Fidelity for a 401k
SHV, BIL, or TBILL ladder (or auto roll as I see people calling on it on the forum) or maybe Fidelity short term treasury fund, or vanguard short term treasury fund (I think Fidelity will let me do this). I have the option to choose any of these.

Also any opinions on cash fund advantages / disadvantages in the form of etf, or direct ownership (via fidelity), or mutual fund.

Thanks!
pmward
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Re: Fidelity - SHV BIL or TBILL ladder (auto roll)

Post by pmward » Mon May 20, 2019 4:06 pm

Personally if you're at Fidelity I see no reason not to auto-roll T-Bills direct. Buying and holding auto-roll T-Bills is no more difficult than buying and holding an ETF. Why pay an ER and accept less yield when it doesn't save you any real effort and adds in an extra layer of counter party risk to boot?

That being said, if you want to do an ETF instead SHV or SHY are perfectly fine for anything that is not considered "deep cash". Most of us get a bit more creative with "deep cash" and assume a little extra risk and/or reduced liquidity for a little extra return.
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KevinW
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Re: Fidelity - SHV BIL or TBILL ladder (auto roll)

Post by KevinW » Mon May 20, 2019 5:55 pm

ppnewbie wrote:
Mon May 20, 2019 3:59 pm
SHV, BIL, or TBILL ladder (or auto roll as I see people calling on it on the forum) or maybe Fidelity short term treasury fund, or vanguard short term treasury fund (I think Fidelity will let me do this). I have the option to choose any of these.
IMO, all of these options are perfectly fine. I'd pick whichever has the lowest expenses, which is probably the auto-roll ladder.
pmward wrote:
Mon May 20, 2019 4:06 pm
Personally if you're at Fidelity I see no reason not to auto-roll T-Bills direct.
...
That being said, if you want to do an ETF instead SHV or SHY are perfectly fine for anything that is not considered "deep cash". Most of us get a bit more creative with "deep cash" and assume a little extra risk and/or reduced liquidity for a little extra return.
+1
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