SGOV Stock Recent News

Investors were eager to close the books on April's tariff-fueled market tantrum, which left both the Dow and S&P 500 riding three-month losing streaks despite a recent rebound. Equity ETF flows cooled, while fixed income ETFs put on a decisively skittish performance.

Some advisors are taking a tactical approach to investing. Many others are strategic and making 3-4 allocation changes a year.

Investors bet on defensive investments in short-term or ultra-short-term bond ETFs amid heightened uncertainty.

It's been another strong year for ETF demand. ETFs gathered approximately $350 billion of new money year-to-date through April 16.

SGOV offers a safe, low-risk alternative to cash with a yield of 4.19%. The ETF holds U.S. Treasury Bills with maturities under three months, ensuring stable prices and minimal risk of capital loss. Other maturities offer better yields, and the spread could widen further as the Fed cuts.

SGOV has been a reliable income generator, but its yield is declining, making it less attractive compared to TLT with more upside potential. The Fed's likely rate cuts in 2025 will further reduce SGOV's yield, while TLT could benefit from rising bond prices in a lower-rate environment. SGOV's dividend income has dropped from over 5% to 4.37%, and longer-duration bonds like TLT offer better prospects as rates decline.

I am holding 20% of my portfolio in cash due to expected market volatility and potential economic downturns, particularly with the upcoming Q1 GDP reading. My cash is allocated between iShares 0-3 Month Treasury Bond ETF and Janus Henderson AAA CLO ETF, each with distinct advantages and risks. SGOV offers liquidity and stability during high volatility, while JAAA provides higher yields but can experience temporary liquidity issues during market turbulence.

On this week's episode of ETF Prime, host Nate Geraci and VettaFi Investment Strategist Cinthia Murphy analyze ETF flows and trends after a wild week in the markets. Later, Geraci welcomes VistaShares CEO Adam Patti to discuss the firm's unique approach to ETFs.

We highlight some defensive investment strategies for investors amid the ongoing chaos.

The article explains how to build a balanced, risk-averse, income-producing, and growth-oriented retirement portfolio with just five diversified funds to ensure simplicity and manageability. Despite market volatility, staying invested is crucial as cash rarely outperforms inflation; a SWAN portfolio aims for peace of mind and steady growth. The portfolio targets 5% income, 3-4% growth in addition to income, and 30% lower drawdowns and volatility.