FDHY
Fidelity Enhanced High Yield ETF
stock NYSE ETF

FDHY is a high-risk fund that simply put will outperform SGOV when the market is good and underperform SGOV when the market is bad.
For example in 2022 when the market was very bad, SGOV went up +1.5% and FDHY went down -11%.

HYSA is an FDIC insured account paying interest. Anything that you’d find in a brokerage account will have incrementally more risk. A money market fund could technically lose value. A short term treasury ETF like SGOV has a little more risk because it’s traded on the market. Something like BND has a longer duration so it’ll be more interest rate sensitive. FDHY is a junk bond product so you’re not only exposed to the interest rate market but you also add in credit risk. Summary: you don’t get above market yield without additional risk.

If I’m saving up for something and don’t want to take risk with a certain portion of my portfolio would a bond etf like FDHY that has a dividend yield of 6.5% be better than a hysa where I’m getting 3%?

FDHY is a high-risk fund that simply put will outperform SGOV when the market is good and underperform SGOV when the market is bad.
For example in 2022 when the market was very bad, SGOV went up +1.5% and FDHY went down -11%.

HYSA is an FDIC insured account paying interest. Anything that you’d find in a brokerage account will have incrementally more risk. A money market fund could technically lose value. A short term treasury ETF like SGOV has a little more risk because it’s traded on the market. Something like BND has a longer duration so it’ll be more interest rate sensitive. FDHY is a junk bond product so you’re not only exposed to the interest rate market but you also add in credit risk. Summary: you don’t get above market yield without additional risk.

If I’m saving up for something and don’t want to take risk with a certain portion of my portfolio would a bond etf like FDHY that has a dividend yield of 6.5% be better than a hysa where I’m getting 3%?