Anyone have experience with VFSTX, Vanguard Short-Term Investment-Grade Fund Investor Shares? .97% 30-day SEC yield.
In particular I'm looking for a savings bucket with a higher interest rate than my USAA savings account (.20%), and I'm willing to tolerate a modest amount of share price fluctuation in exchange for that higher yield.
I have about $150,000 in cash (I don't have a bond allocation...everything is in equities). I view this as my emergency fund, my dry powder to buy VTSAX/VTIAX with market drops, and perhaps balance out my portfolio in general since I have such a high equity allocation (I also have a VA pension, increases slightly each year and continues to my death, so I view that as a bond allocation).
Anyone have any experience with this, using for a similar purpose? If so, how has that worked out for you in this low interest rate environment?
Open to thoughts or perhaps alternatives. Thanks! CC
