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Vanguard Canadian Aggregate Bond Index ETF (VAB $23.19)
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iShares Core U.S. Aggregate Bond ETF (AGG $100.02)
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SPDR Bloomberg 1-3 Month T-Bill ETF (BIL $91.74)
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Global X High Interest Savings ETF (CASH $50.09)
Q: Saw a headline regarding the big outflow from MM funds into bond funds, can you confirm this, if so explain the reason and provide your favorite bond funds for parking cash?
5i Research Answer:
We are not sure of the specific story here but this move could make sense with rates moving lower. Essentially, some investors have a minimum yield they require so when rates move lower, if that minimum yield is no longer achived, investors might have to move up the risk curve to higher yielding options (such as bonds). Some bond funds to consider could be BIL, CASH, AGG and VAB.