Tiger Vault: Everything You Need to Know in One Article
1. What is Tiger Vault?
Tiger Vault is essentially a curated basket of money market funds. These funds primarily invest in low-risk underlying monetary instruments such as short-term government bonds, large certificates of deposit, and high-credit-rated commercial papers. As a result, this type of fund is also considered nearly risk-free. While its yield may fluctuate, the principal is almost unaffected.
2. Why Choose Tiger Vault?
Higher Returns: Currently, the USD funds in Tiger Vault offer a yield of approximately 4.7%, while the HKD funds yield around 3.8%. These rates are higher than the yields of short-term U.S. Treasury bonds, which are typically around 4.2%, for a similar level of liquidity.
Rate Cut Expectations: The Federal Reserve announced a 25-basis-point rate cut this week, and expectations for further rate cuts in 2025 are growing. This favorable outlook increases the appeal of Tiger Vault, as its potential benefits are amplified in such scenarios.
High Capital Utilization
Another advantage is that Tiger Vault offers far greater capital efficiency compared to short-term Treasury bonds.
For example, if all your funds are invested directly in short-term Treasuries, you would not have the flexibility to invest in other assets like stocks or options. However, if your funds are entirely invested in Tiger Vault, you can earn interest while maintaining 99% purchasing power to buy stocks and options. As long as the funds are redeemed into your securities account before the stock settlement date (T+1), you can even save on financing interest.
3. How to Place an Order?
If you are selling options or implementing combination option strategies that require margin, Tiger Vault can be directly used as margin collateral. As long as there is no exercise involved, the funds will not be automatically redeemed, nor will any interest be incurred.
Thanks to these advantages, Tiger Vault was voted as the "Most Loved Product by Investors" in the 2024 investment product awards.
If you're interested in Tiger Vault, feel free to check out the details on the Tiger App by navigating to the "Wealth" homepage.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
🌟🌟🌟I love Tiger Vault as it is a brilliant innovative product by Tiger Brokers which makes my idle money work harder while waiting to be used for my investments. It is flexible and earns high interest, much better than putting money in my regular savings account with the banks. With Tiger Vault, my money never sleeps!
@Tiger_Academy Thank you for highlighting the extraordinary features of Tiger Vault, voted the most popular product by the wonderful Tiger Community.
@Tiger_comments @TigerStars @CaptainTiger
例如，如果您的所有资金都直接投资于短期国债，您将无法灵活地投资于股票或期权等其他资产。但是，如果您的资金完全投资于Tiger Vault，您可以在赚取利息的同时保持99%的购买力购买股票和期权。只要在股票交收日（T+1）前将资金赎回到您的证券账户，您甚至可以节省融资利息
@CaptainTiger pls look into such community issue too. thanks!