Is there any ETF or mutual fund safer or less volatile than SHY? Comparing it to other funds and ETFs, it's the least volatile that I've found so far. How would it be for a place to park short-term cash? I guess that the dividend payments are quarterly.
SHV might be less volatile but the yield is practically zero. SHY has a higher yield but it has been a little more volatile lately, having gone down 0.4% since 7/1/09. Not much of a decline but enough to wipe out about 25% of the annual yield of 1.6% (per iShares website). It is down again this morning 0.13%. I am getting ready to bail on this ETF and will probably put the money in ING or Everbank to avoid loss of principal.
I also have been studying Everbank, their rates are obviously attractive. What is your opinion of that institutions financial stability.... there is plenty to like about 2.5% in a savings account. Do you place ING or Ally Bank in the same grouping with Everbank? By the way, I also have had enough of SHY as well. The NAV moves have devoured the yield.