"SPTI holds U.S. Treasury securities in the intermediate maturity range, offering a 3.76% dividend yield and an expense ratio of just 0.03%, making it one of the cheapest ways to own Treasury income."
"FLTB targets investment-grade bonds with maturities between two and five years, yielding 4.27% with an expense ratio of 0.25%, primarily holding corporate bonds."
"The best high-yield savings accounts still advertise rates near the Fed funds upper bound, but most are drifting lower as the Fed cuts rates."
High-yield savings accounts have become less attractive as the Federal Reserve cuts rates. The SPDR Portfolio Intermediate Term Treasury ETF (SPTI) offers a 3.76% yield with low expenses, while the Fidelity Limited Term Bond ETF (FLTB) yields 4.27% by investing in corporate bonds. SPTI holds U.S. Treasury securities, providing price stability, while FLTB includes a mix of investment-grade bonds. The competitiveness of these ETFs compared to savings accounts depends on individual bank rates, with SPTI matching the 2-year Treasury yield and FLTB slightly exceeding it.
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