Cash options

[BearBones]

What to do with cash? Seems to be the question of the week, judging by the number of posts. Here is a rough summary of the ST treasury options that I have seen discussed on this forum (other than iBonds, etc). Could be errors, but I think that it gives the general idea. I have italicized those options that seem less favorable compared to the competition.

Do it yourself treasury ladders:
Fidelity
Vanguard
Treasury Direct (see http://www.mymoneyblog.com/how-to-build ... guide.html)

Treasury MM Funds:
GABXX - Gabelli U.S. Treasury Money Market Fund - 80 Treasuries, currently 100 - ER 0.11 (0.08 after waiver)
VUSXX - Vanguard Admiral Treasury Money Market Fund - 80% Treasuries, currently 100 - ER 0.11% - closed to new investors
FDLXX - Fidelity U.S. Treasury Money Market Fund - 80% Treasuries, currently 100 - ER 0.42
SWUXX - Schwab U.S. Treasury Money Fund ER 0.45
CPFXX – American Century Capital Preservation Fund – ER 0.48
DUSXX – Dreyfus 100% U.S. Treasury MM Fund - ER 0.58 (currently waived)

ST Treasury Funds:
FSBAX - Fidelity Spartan Short-Term Treasury Bond Index Fund Advantage Class - 1-5 yr duration - 80% Treasuries, currently 99.5 - ER 0.1 – 100K minimum
FSBIX - Fidelity Spartan Short-Term Treasury Bond Index Fund Investor Class - 1-5 yr duration - 80% Treasuries, currently 99.5 - ER 0.2
VFIRX - Vanguard Short-Term Treasury Fund Admiral Shares – 1-4 yr duration - 80% Treasuries, currently 90 - ER 0.1 – 50K minimum
VFISX - Vanguard Short-Term Treasury Fund Investor Shares – 1-4 yr duration - 80% Treasuries, currently 90 - ER 0.2

ST Treasury ETFs:
BIL - SPDR Barclays Capital 1-3 Month T-Bill ETF - 1-3 mos duration – 80% Treasuries, currently 99.8 - ER 0.13 - Volume 1500K
SHV - iShares Barclays Short Treasury Bond Fund  - 1-12 mos duration – 90% Treasuries, currently 99.6 - ER 0.15 - Volume 485K
SHY - iShares Barclays 1-3 Year Treasury Bond Fund - 1-3 yr duration – 90% Treasuries, currently 99.6 - ER 0.15 - Volume 1700K
TUZ - PIMCO 1-3 Year US Treasury Index Fund – 1-3 yr duration – 80% Treasuries, currently 91 - ER 0.15 - Volume 16K
SCHO - Schwab Short-Term U.S. Treasury ETF - 1-3 yr duration – 90% Treasuries, currently ? - ER 0.12 - Volume 74K
SST - SPDR Barclays Capital Short Term Treasury ETF - 1-5 yr duration – 80% Treasuries, currently ? - ER 0.12  - Volume 4K

[Pointedstick]

Personally, I use one of VFISX, SCHO, and SHY in each of my PPs because I'm lazy and don't mind the risk of short-term loss of some capital.

[sophie]

As TripleB's post somewhere else said...cash is by far the most complex asset!  Never appreciated this before the PP came along - I just saw it as a big opportunity cost.  Within just a few weeks, my attitude has completely changed.

I sense a new Cash FAQ in the making.  Regarding the ST treasury list below:

treasury ladders - Fidelity has a minimum of $30,000 to use their ladder tool.  A "diy" ladder can be made with any amounts in units of $1000 give or take the premium/discount pricing, if you pick bonds one at a time.

treasury MM funds:  FDLXX has a minimum balance of $25,000.

ST treasury funds:  FSBIX has a minimum balance of $10,000.

To me, those minimum balances defeat the purpose of the cash allotment.  It's why I ended up in the world of I-bonds plus buying treasury bonds directly.