Why it’s important… for people like me who like the ability to trade ETFs during the day, this could be important.
It could be out by May 28… and Schwab likes to price their fixed income ETFs around $25 a share so this would be good, considering Schwab won’t let you buy fractions of a share. Competing products are $100 per share.
Finally!! Having to use their mutual fund options like SWVXX can create margin problems since trades don’t settle until after hours…
I have the symbol! It’s SGVT
Darn! It’s live, but priced at $100 per share. What good is that? Same as BIL or SGOV. Not a place to park loose change less than $100. Guess I will keep using SCHO for that.
I just looked at the prospectus at Schwab…but I didn’t see ay info about the yield…
Assuming its a blend of US Treasury securities, then I am guessing around 4%.
Compared to SGOV, the expense ration is high… 0.28%.
I’ll bet it has slightly junky stuff in it. Treasury Repo, US Govt Agency Debt. Those aren’t as good as straight-up T-Bills for safety.
Regardless, at $100 per share it’s too costly for absorbing loose change. SCHO is Schwab’s Short Term US Treasury ETF (2 year bonds), it’s $24.24 per share. I’ll keep using that one.
The worst case for our four Schwab accounts is that we have 4 x $24.23 = $96.92 not really earning interest, over a year that’s 4% x $96.92 = $3.88 “opportunity cost”. I don’t care.
I do care about having to wait overnight for mutual fund trades like SWVXX and SNSXX to settle, as my time and hassle factor is worth way more than $3.88 a year.