The low risk/cash portion of my portfolio, with risk factors:
1-SGOV – US T Bill in an ETF – Risk: depended upon company managing ETF; worst case: investors have a panic sell, causing the trade price to drop. Good interest rate, due to 0-3 month duration of holdings. Very liquid, immediate redemption.
2- Money Market Fund – slightly lower risk, as portfolio of US T Bills are very short term (weeks) and maintained at $1.00. Good interest rate, but SGOV generally better. Liquid, next day redemption.
3- Buy US T-Bills direct or through broker. Very low risk Hold to maturity results in no loss. Zero coupon is my preference. Can sell early at possible loss or gain.
4 – Bank CDs purchased through broker – Very Low risk, FDIC insured.
5 – Broker cash account, low risk, SIPC insured, but generally very low interest rate.