Where to keep your Emergency Fund for better yield while staying liquid?
Here are some of the higher-yielding, relatively low-risk “Cash Stash” ETFs people use for this purpose. These funds have a very consistent share price that is stable and have no NAV decay. I have selected several of these funds for my portfolio's Emergency Fund:
Amplify - YYYM – 7.46%
State Street - MYHC – 7.01%
Liquid Strategies - OVT – 6.41%
State Street - MYHB – 6.20%
Liquid Strategies - OVB – 6.17%
Kurv - LQID – 5.32%
NEOS - CSHI – 4.99%
These aim for monthly income with a focus on shorter-duration or enhanced cash strategies. Always check current yields, risk, and suitability — nothing is 100% risk-free. Build the fund first. Then optimize it.
Emergency Fund details:
Calculate only the true must-pay bills: housing, food, utilities, transport, insurance, minimum debt payments. That’s your target number. Build it before aggressive investing or use your distributions and dividends to build it out BEFORE turning on DRIP.
How much should be in your Emergency Fund? Most financial pros recommend 3 to 6 months of essential living expenses. I believe the sweet spot for most people is 6 to 12 months. If COVID taught us anything it is that things can change FAST and having this emergency fund is more important then ever!
Something RARELY spoken about - The need for an emergency fund. The following 2 posts will list out what should be in an emergency fund and some LOW RISK ETF's that you can begin to set money aside and get a solid return with it sitting there.
What is an Emergency Fund & why do you need one?
An Emergency Fund is cash set aside for unexpected life events — job loss, medical bills, car repairs, or major home issues.
It’s not for vacations or new gadgets. It’s your financial shock absorber so one bad month doesn’t turn into debt or forced selling of investments. Without one, you’re one crisis away from high-interest debt or wiping out your long-term portfolio.
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