Wealthfront is offering this portfolio with a 5.48% yield. Is there a catch? Is this yield going to fluctuate a lot or is this a better place than the HYSA? https://support.wealthfront.com/hc/en-us/articles/14756022051988-Automated-Bond-Portfolios
Is this protected by FDIC?
You can find bond funds & ETFs yielding in the same range. Short term treasuries are around 5% and you can get corporate bond funds from 5.5-7% depending on risk and duration If you are high income in a high tax state, you are likely better off with treasuries or muni funds
I guess Wealthfront is simplifying the bonds buying process. Instead of locking up for a certain amount of time I find the Wealthfront Automated bond portfolio easier to use.
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The catch is 0.25% fees for management. That's too much for 5.4% yield because you can get closer to TBILLS.
Even with the 0.25%, isn't it better than HYSA?
For 0.5% extra, do we need to take risks? HYSA is guaranteed, this isn't.