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  5. ZAG: About 25% of my portfolio is in cash, enough for 5 years of cash needs. [BMO Aggregate Bond Index ETF]
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Q: About 25% of my portfolio is in cash, enough for 5 years of cash needs. The problem is that it earns only 0.2%. Now I am thinking of putting this cash in 5 or more high quality Bond ETFs. Is this a right move? If so, could you give few names? Thanks.

Asked by Sudhir on June 11, 2021
5i Research Answer:

Moving into high-quality bond ETFs is a good option for many, but investors need to understand these are not risk free Short term funds such as XSB have less variability to interest rates.  One can also consider a saving account ETF. Options are VAB, ZAG, or PSA (High-Interest Savings).