iShares SGOV ETF offers a safe, short-term Treasury yield near 3.9%, ideal for cash parking without duration risk.

The iShares 0-3 Month Treasury Bond ETF (SGOV) provides investors a low-risk way to earn about 3.9% yield by holding U.S. Treasury bills with maturities under 90 days. It avoids duration risk and price volatility common in longer bonds, making it suitable for cash reserves or emergency funds. While yields have slightly declined from their peak, SGOV still outperforms typical savings accounts and offers tax advantages on distributions. Investors should note reinvestment risk if rates fall and that distributions are taxed as ordinary income. SGOV fits well as a stable cash sleeve in portfolios, especially during high-rate environments, but investors seeking growth should consider longer-duration bonds.