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REDDIT

Park cash in 1 year vs 3 year treasury bonds?

B
Apr 30, 2025 · 12:27

I'm looking to park around 65% of my net worth, that I may need in the next 3 years, into a short term investment.

I'm currently undecided between investing in a 0-1 year treasury ETF (IB01) VS a 1-3 year treasury ETF (IBTA). Or splitting my investment into both.

Are longer duration treasury ETFs guaranteed a higher rate of return (but subject to more short term volatility)? Could the 1 year bond outperform the 3 year bond?

Short of an emergency, I'd probably be parking this money for 1.5 to 3 years