SCHO for Cash?
Moderator: Global Moderator
SCHO for Cash?
What are your thoughts on using SCHO for the cash portion of a PP, versus BIL or any other ETF? I wonder because BIL has a negative return for YTD and the past 12 months, and I thought the idea of the cash portion is that it needs to stay very stable...
Re: SCHO for Cash?
SCHO seems fine to me. It tracks a Treasury-only index and its expense ratio of .12% is competitive.
As you may know SCHO holds 1-3 year bonds, instead of the <1-year bills which Browne advocated. Many here are comfortable with that substitution, but do your own due diligence.
My only reservation is that it's a new ETF, so its and volume and AUM are both lower than more established ETFs such as SHY.
As you may know SCHO holds 1-3 year bonds, instead of the <1-year bills which Browne advocated. Many here are comfortable with that substitution, but do your own due diligence.
My only reservation is that it's a new ETF, so its and volume and AUM are both lower than more established ETFs such as SHY.