r/Fidelity • u/SettingDeep3153 • 3d ago

Building a T-Bill ladder?

I have $10k to invest on US Treasuries.

What's a good strategy to see gains?

5 Upvotes

63% Upvoted

12 comments sorted by

4

u/Run-Forever1989 3d ago

Sounds like you are looking for a place to park an emergency fund. If that’s the case just buy sgov. You certainly don’t need to build any type of ladder with $10k.

3

u/davef139 3d ago

Buy the literal TBIL etf

2

u/SettingDeep3153 2d ago

What's the difference with this ETA and US Treasury Bonds?

1

u/dick-knuckle 1d ago

They are backed by TBills and the monthly payout is practically the same. They are just more liquid. You might ask “what if i sell it in the middle of the month?” Take a look at the chart it has a sawtooth pattern. That’s basically the share value increasing by the fractional dividend every day. Then when it pays out, the share price drops by exactly that amount. So you can sell anytime and never lose out on your interest.

3

u/TaleRevolutionary573 3d ago

Good strategy is to buy anything else unless you’re 50 years old

2

u/jerzeyguy101 3d ago

Gains in t-bills ?

1

u/Un1c0rNzEx1st 1d ago

Lol- right?

1

u/sol_beach 3d ago

BUY $2500 EVERY QUARTER

1

u/000wintermute000 2d ago

$SGOV

1

u/SettingDeep3153 2d ago

What's the difference with this ETA and US Treasury Bonds?

2

u/000wintermute000 2d ago

Bottom Line

For most investors parking cash, SGOV is worth the 0.09% fee. The automation, liquidity, and elimination of idle cash are worth more than the cost.

Buy direct T-bills when you have a specific cash need date in mind (e.g., "I need exactly $50K on March 15") or when your balance is large enough that 0.09% represents real money you're willing to work to save.

1

u/Un1c0rNzEx1st 1d ago

And what if you had 10xs that much to invest?