3d (edited) • General discussion
Maximize Yield on Idle Cash in Your IBKR or other brokage account
If you have cash sitting in your brokerage account (eg IBKR), you may consider SGOV (iShares 0-3 Month Treasury Bond ETF). It is one of the most efficient ways to make your "dry powder" work for you.
Holding SGOV is equivalent to earning a risk-free yield of around 3.6%-4%, with monthly payouts at the beginning of each month.
1. What is SGOV?
SGOV is an ETF that invests exclusively in US Treasury bills with maturities of 3 months or less. It acts like a high-yield "cash bucket" within your trading account.
2. Why is it virtually risk-free?
- Government Backed: It is backed by the "full faith and credit" of the US Government.
- Ultra-Short Duration: Because the bonds expire within 90 days, the price is extremely stable. Even if interest rates rise, SGOV’s price barely moves (usually staying within a few cents of $100).
- High Liquidity: You can sell it any time during market hours to get your cash back instantly (T+1 settlement).
3. What is the yield?
As of February 2026, SGOV offers a trailing 12-month yield of approximately 4.04%.
4. How do you get paid?
- Monthly Dividends: SGOV pays out interest every month.
- Automatic Credit: The money is deposited directly into your brokerage account as "Cash Dividends."
Summary: If you want a safe, liquid place to earn 4% while waiting for the stock market to dip, SGOV is the way to go.
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Maximize Yield on Idle Cash in Your IBKR or other brokage account
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