Money Market Replacements

With money market rate getting to almost zero, there are a few short term bond ETFs that provide reasonable risk/reward ratio. Here are 3 short term bond ETFs that could be considered for short term money market replacements:

These Data are from Yahoo Finance:
  • JPMorgan Ultra-Short Income ETF (JPST): Net Assets: $12.78B, Yield: 2.06%
  • Invesco Ultra Short Duration ETF (GSY): Net Assets: $2.54B, Yield: 2.3%
  • First Trust Low Duration Oppos ETF (LMBS): Net Assets: $5.63B, Yield: 2.17%

Of course, there are some short term bond funds such as T. Rowe Price Ultra Short-Term Bond Fund (TRBUX) that are pretty reasonable if you want to stay within mutual fund realm. TRBUX has a net assets of $2.23B and yield 2.3%.

As a full disclosure, we have both JPST and TRBUX in our portfolio.

If you see good money market replacement options, please kindly share in the comment below

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