SGOV

This is effectively the cash allocation. It keeps capital liquid and productive while waiting for attractive opportunities during a choppy market, and can be redeployed when individual holdings or the broader market create better entry points.

Very short-dated Treasury bills carry almost no interest-rate sensitivity and no credit risk worth modeling. The trade-off is deliberate. This allocation is not expected to compound at an equity rate; it exists so a market dislocation can be acted on without selling something else on someone else's schedule.

The real cost is opportunity cost. In a rising market it lags, and its yield falls as short-term rates fall. That is the accepted price of holding the option to act.