Technical Analysis

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  • 1.  Risk Free Rate

    Posted 02-18-2023 21:02

    It seems to me that using ticker USFR is better than using SHY. USFR did not loss principal in last bear market. Both yielding about 2%.

    SHY lost principal in 2022, 2007 and at other times. Doesn't seem like a good idea to use SHY for the risk free rate ticker in various analysis.



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    [Jim] [McClean]
    [Houston][Texas]
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  • 2.  RE: Risk Free Rate

    Posted 02-19-2023 10:44
    Edited by PETER WANG 02-19-2023 10:46

    I have been hiding out in SGOV, but USFR seems really good. It's even better than IFLOT, which has had significant volatility, it blew up in early 2020.

    HOWEVER... look at the price action in USFR from inception to late April 2018... what's all that junk and noise and volatility? I don't like that.



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    PETER WANG
    AAII Houston TX Member
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  • 3.  RE: Risk Free Rate

    Posted 02-19-2023 14:17
    Edited by PETER WANG 02-19-2023 14:24

    The people in the AllocateSmartly group on Reddit like the USFR suggestion. I'm going to use it instead of SGOV or BIL, as soon as I look at the fund documents.

    Later...

    It only holds four things... it's super simple to replicate and avoid the 0.15% ER

    Holdings of USFR floating rate note ETF as of 2/19/2023

    1. US Treasury Frn 10/31/2024 29.76%

    2. US Treasury Frn 7/31/2024 29.76%

    3. US Treasury Frn 4/30/2024 29.73%

    4. US Treasury Frn 1/31/2025 10.51%



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    PETER WANG
    AAII Houston TX Member
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    Original Message