You can park your money in one of fixed income ETFs. They can fluctuate but they pay monthly dividends. Ticker Name Sponsor Share Price Exp Ratio Avg Volume Yield AGG iShares Lehman Aggregate Fund BARCLAY'S GLOBAL $100.48 0.20% 224,600 4.40% IEF iShares Lehman 7-10Yr Treasury Bond Fund BARCLAY'S GLOBAL $83.19 0.15% 206,700 3.45% LQD iShares iBoxx $ Investment Grade Corporate Bond Fund BARCLAY'S GLOBAL $107.72 0.15% 124,400 4.76% SHY iShares Lehman 1-3Yr Treasury Bond Fund BARCLAY'S GLOBAL $80.27 0.15% 596,200 3.67% TIP iShares Lehman TIPS Bond Fund BARCLAY'S GLOBAL $99.29 0.20% 193,300 6.80% TLT iShares Lehman 20+Yr Treasury Bond Fund BARCLAY'S GLOBAL $89.66 0.15% 1,015,200 4.05%
Before anyone 'parks' in these lots, I suggest a look at a long term chart, and ask yourself if you'd be happy leaving the lot with a dent in your fender. You could also leave with new tires and a spit shine, but thats another story.
Well. If you sell deep in money calls at the same time for the date you need your money. It is not that bad as it looks. But you are right. Use caution. Like funds like to say even money market funds can lose money.
You may wish to consider at selling an EFP. Please take a look at the following links: http://www.interactivebrokers.com/en/trading/pdfhighlights/PDF-ExchPhysical.php? ib_entity=llc There is also a recorded webinar available here: http://www.interactivebrokers.com/en/general/education/priorWebinars.php?ib_enti ty=llc (scroll down to October 18th). There will also be another webinar next week on the 17th January: http://www.interactivebrokers.com/en/general/education/ibSeminarInfoTWSexch.php? ib_entity=llc
Well, your car was vandalized and they left graffiti all over the hood if you parked in any long etfs the last month. But never fear, help is on the way. Bunch of new etfs, and among them is something called SHV, which is in short (< 1 yr) treasuries, and looks to me like a very low risk place for cash, if you need it. Yield would prob be in the 4-4.25 % range but since its so new, that figure may be a bit low, I can't tell. Check it out.
Looks like it is not that bad after all. Also I thought about a little better way for IB which is called "Synthetic money market". Here is the link http://www.cme.com/files/fairvalu.pdf. Basic idea is to buy S&P (SPY or other similar ETF) and short S&P futures.