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dust4ngel t1_jegibk8 wrote

Reply to comment by penguinise in CD vs T-bill what’s the best move? by maccc095

> "Laddering" as a concept applies equally to Treasuries or CDs ... meaning that you more frequently have access to cash

out of curiosity, why treasury ladders vs ETFs holding treasuries, such as BIL or SGOV?

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BrownPrivilege123 t1_jegy2o2 wrote

ETFs that hold bonds tend to trade at a premium or discount to the NAV of the holdings. I guess you could call it basis risk. There is also the expense ratio to contend with (effectively a managed fee), but it is less work.

I don't know what the minimum amount of capital that you need to purchase a t-bill; however, with an ETF and fractional shares, capital wouldn't be an issue

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nope-absolutely-not t1_jeh2n0d wrote

> I don't know what the minimum amount of capital that you need to purchase a t-bill

From TreasuryDirect: $100 minimum and $100 intervals.

From a brokerage: Nearly always $1000 minimums and $1000 intervals

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