Schwab Government Money Market ETF

SGVT

Market cap $826M

Schwab Government Money Market ETF (SGVT) offers near-zero credit and interest rate risk, making it a sensible cash-parking option for short-term liquidity needs. SGVT's 4.11% SEC yield and 0.28% expense ratio are competitive, but not superior, compared to similar ETFs like USFR, FLOT, and SGOV. SGVT is best used for portfolio liquidity or temporary cash parking, but its fee and yield do not provide a compelling advantage over peers.

Cash allocations are coming back into the forefront of portfolio strategies, and Schwab Asset Management is getting in line.

Schwab Asset Management has launched its first money market ETF, the Schwab Government Money Market ETF (SGVT) on the NYSE Arca today. With an expense ratio of 0.28%, the fund aims to provide current income while preserving capital and maintaining liquidity.