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  5. CASH: I have about $250k that I am looking to park for up to a year not in equities, what are some low risk options? [Horizons High Interest Savings ETF]
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Q: I have about $250k that I am looking to park for up to a year not in equities, what are some low risk options? And as a side note can you clear up what a 'money market' account is and invests in typically?
Asked by Graham on January 04, 2024
5i Research Answer:

Some low risk, non-equity options to consider are high-interest savings accounts, certificates of deposit (CDs), or short-term government bonds. Two high-interest savings account ETFs that we suggest are PSA and CASH. These provide relatively stable returns with lower volatility compared to equities. A money market account is a type of savings account with check-writing privileges, offering a slightly higher interest rate than a regular savings account. Money market funds, on the other hand, are mutual funds that invest in short-term, highly liquid securities like Treasury bills and commercial paper. 

Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in PSA.