Managed byGoldman Sachs
This fund is the lowest risk investment on Stash. Historically, it generates income and can be a great place to put extra cash or savings to work. It’s made up of short-term US government bonds and nearly as steady in terms of volatility as a money market account.
Fallback funds offers investors a liquid, short-term, low-risk investment that is similar to cash, but may offer higher returns than an interest-bearing savings account.
Stash recommends having a rainy day fund (containing $500 to $1,000, typically in a bank account) and an emergency fund (containing 3 to 6 months worth of expenses) for all that life can throw at you. Fallback Funds may be a good place to invest some of your emergency funds for the long or medium term, so that your money is actively working for you by hopefully generating a return.
Note: Money invested in Fallback Funds can take up to five business days to sell and transfer to your bank account. Do not invest cash here that you might need immediately or might need for unexpected one-time expenses. Instead, consider using a bank account as an easily accessible rainy day fund.
- U.S. Treasury Bills
- U.S. Treasury Notes
Performance Data Disclosure: View all disclosures
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Stash Investment Details:
Conservative risk level
Risks and considerations:
Investing has its risks, and Fallback Funds is no exception. Because this ETF is composed almost entirely of U.S. Treasuries (government bonds), however, it is more susceptible to certain risks than, say, a fund that contains stocks. The two main risks that affect Fallback Funds are interest rates changes and inflation.
- Interest rate risk—Rising interest rates can cause bond prices to fall while falling rates can cause them to rise. Thus, Fallback Funds’ value can be affected by the Federal Reserve deciding to increase or decrease interest rates.
- Inflation—Inflation refers to the rising cost of goods and services over time. Inflation affects the value of bonds as it can eat away at an investor’s yield, or income received from the bond. So, as inflation rates bob up and down, so does the buying power of the income received from the bond.
Read the fund’s prospectus for more details on this fund’s associated risks.
Read more about investing in funds on StashLearn
Fallback Funds is one of several ETFs and stocks available on Stash. You can find out more by visiting our investment pages.