Quick Read – Liquidity Matters More Than Many Investors Think: Unlike CDs, an ETF like SUB can be traded intraday without lockup periods or early withdrawal penalties. – Tax Efficiency Changes the Math: SUB’s federally tax-exempt 2.62% 30-day SEC yield translates into a much…
gher 4.42% tax-equivalent yield. – SUB is Still Fairly Low Risk: With an average duration of just 1.82 years and mostly AA and AAA-rated bonds, SUB keeps interest rate sensitivity and credit risk minimal. – The analyst who called NVIDIA in 2010 just named his top 10 stocks and iShares Short-Term National Muni Bond ETF wasn’t one of them. Get them here FREE
The analyst who called NVIDIA in 2010 just named his top 10 stocks and iShares Short-Term National Muni Bond ETF wasn’t one of them. Get them here FREE. I have never really been a fan of certificates of deposit (CDs).
Yes, the principal is guaranteed and insured by the Federal Deposit Insurance Corporation (FDIC), but the lockup period is extremely inflexible. If I need emergency cash or dry powder to buy the dip, I do not want my money trapped behind an early withdrawal penalty. They are often pitched as a safe place to park cash, but once you start building CD ladders to get around the liquidity problem, I start asking why not simply use Treasury bills instead.