Q: I am looking to park some cash in a cash account for 1 to 2 years. I am looking for income that is relatively safe and not concerned with minimized capital gains from capital gains. Your thoughts please. Thank you. If you have other suggestions for consideration,please advise.
5i Research Answer:
o park cash in a cash account, we would look at a money market ETF. ZWU has a return of capital and market volatility priced in. If that kind of volatility is acceptable for an investor, we would be okay with ZWU, otherwise, we would consider CASH or PSA to 'park' in a cash account, considering the short duration. It really depends on one's risk level. ZWU can decline with high interest rates, and is down 4% YTD. The cash ETFs are not likely to decline and yield is more likely to rise with interest rates.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in ZWU.