Broad munis and intermediate treasuries are both down 10% YTD, and so are TIPS (though at least those have had inflation adjustments). You might want to check your "emergency fund investment account" lol...

It’s on target still. Less margin than usual, but the gains from the last 10 years have made up for that.

Betterment recommends 30% margin: https://www.betterment.com/resources/funding-a-safety-net-ca...

Gains from the past isn't so much the point, but rather when you may need to liquidate. An emergency fund is typically needed at the worst possible time, when the economy isn't good and investments are deflated. That's the liquidity risk you take with anything but cash.

"Stocks are liquid enough..."

Neither of those are stocks.

Bonds are (usually) less volatile than stocks, but yeah, be careful about using them for short-term emergency funds.

Bond ETFs are equally as liquid as stocks.