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Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY $60.62)
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State Street SPDR Bloomberg 1-3 Month T-Bill ETF (BIL $91.72)
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JPMorgan Ultra-Short Income ETF (JPST $50.75)
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JPMorgan Equity Premium Income ETF (JEPI $57.91)
Q: Let's say a conservative investor (i) wants to invest US dollars in US ETFs, (ii) wants principal protection above all, for example by investing primarily in BIL.
If this investor wants to move a little bit up the risk ladder with a view to getting more yield, by adding one or two other conservative ETFs (while continuing to hold BIL as the primary holding): what would you suggest?
If this investor wants to move a little bit up the risk ladder with a view to getting more yield, by adding one or two other conservative ETFs (while continuing to hold BIL as the primary holding): what would you suggest?
5i Research Answer:
We would look at JPST (slightly higher yield than BIL). Then we would look at JEPI. We would then also look at high yield dividend ETFs, like VDY (although the yield is roughly the same as BIL, it is effectively moving up the risk curve as it includes equity risk).