Personal Investments • Any material difference between T-Bill ladder/SGOV and SWVXX?

I've been rolling approximately 150K in a 6 rung/6 month T-Bill ladder (25x6) and currently have an average yield of 5.22%. This money is a HYSA replacement and used for near term expenses, so funds are either added or removed once per month. (We bank at Schwab with their pathetically low checking rates:). We live in a state without income taxes.

I've started to ponder whether the effort is really worth it. I personally kind of enjoy making purchases at auction...but my DW, probably not so much if something were to happen to me.

The two alternatives I'm considering are:

SWVXX - Schwab Prime Money Market 5.14% presently
or
SGOV - 0-3 month iShares T-Bill 5.24% 30-day yield

I understand the slight differences in duration between rolling my own and the SGOV product as well as the difference between a prime money market fund and treasury bills. I perceive each equally risk-less, or are they?

I'm not trying to chase every last bp of yield, just not sure if the monthly exercise is worthwhile over the long-run or whether I've just convinced myself that by doing something a little more complicated, it is financially better. Simplicity also gets a vote.

Any perspectives or other alternatives I haven't considered?

Anybody stop rolling T-bils recently?

Statistics: Posted by guppyguy — Mon Jul 29, 2024 8:10 pm — Replies 9 — Views 748

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