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BMO Ultra Short-Term Bond ETF (ZST)
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Global X Cash Maximizer Corporate Class ETF (HSAV)
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Global X High Interest Savings ETF (CASH)
Q: I asked this question on June 1, 2025 but did not get an answer so I am asking again.
What is the difference in underlining risks between ZST and high interest saving ETFs like CASH and HSAV?
What is the difference in yield between them?
I have about $100k in cash to park for 1 year ish so I am looking for a bit of yield during this time.
What is the difference in underlining risks between ZST and high interest saving ETFs like CASH and HSAV?
What is the difference in yield between them?
I have about $100k in cash to park for 1 year ish so I am looking for a bit of yield during this time.
5i Research Answer:
ZST invests in short term bonds rather than high interest deposits. This exposes it to some degree of interest rate risks and higher volatility. It does focus on bond maturities of less than one year, but these are tradeable bonds and can still move in value depending on what interest rates do. In a sharp spike of rates, it could see its portfolio decline in value, whereas a HISA ETF would see higher yields. We would still consider it low-risk, but higher risk than a high interest ETF. But yield is also higher to compensate (2.94% now vs 2.46% for CASH). We would be comfortable buying ZST for one year.