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I am considering putting a huge portion of my liquid assets in a treasury ETF, such as SGOV or USFR instead of my HYSA. This is to both maximize my gains in a way that I don’t have to manage (I am fine paying the expense ratio not to manage dealing with T-bills), and also lower my state income tax.
I am curious what the risk to the NAV price is if there was a run on any of these ETFs, where everybody was trying to liquidate at once. If the NAV dropped, could people then theoretically purchase it at a lower price and try to get capital gains as it grows back up to its standard principal?
I am not worried about the underlying assets being defaulted on...since that would mean much bigger problems are occuring if the US is defaulting...I am meaning specifically about the NAV price.
I am mostly just trying to get assurances that if I put such a large portion of my own personal assets in these funds, that I should not have to worry.
submitted by /u/Tsyras
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I am curious what the risk to the NAV price is if there was a run on any of these ETFs, where everybody was trying to liquidate at once. If the NAV dropped, could people then theoretically purchase it at a lower price and try to get capital gains as it grows back up to its standard principal?
I am not worried about the underlying assets being defaulted on...since that would mean much bigger problems are occuring if the US is defaulting...I am meaning specifically about the NAV price.
I am mostly just trying to get assurances that if I put such a large portion of my own personal assets in these funds, that I should not have to worry.
submitted by /u/Tsyras
[link] [comments]
Continue reading...
