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:
- 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