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Purpose US Cash Fund (PSU.U)
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Global X USD High Interest Savings ETF (UCSH.U)
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Vanguard Ultra-Short Bond ETF (VUSB)
Q: Hi, I presently have $50000 U.S. in a non reg acct. I do not plan to purchase any stocks in the near future. Would appreciate your thoughts on what my options are to generate some income with it. Thank you.
5i Research Answer:
It depends on timeframe. From a safety/yield perspective, the highest rates would be on a US-dollar GIC. A high interest ETF such as PSU.U or UCSH.U will provide liquidity and at least some return. US money market funds (available at most brokers) would also provide decent yield (relatively) and high safety. The riskiest we would prefer to be would be with an ultra short bond fund, such as VUSB, which could benefit if interest rates head lower.