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Purpose High Interest Savings Fund (PSA)
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Global X High Interest Savings ETF (CASH)
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Premium Cash Management Fund (MCAD)
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TD Cash Management ETF (TCSH)
Q: I am retired and looking to park some cash. TCSH and MCAD appears to be another type of ETF being offered around fixed income. These ETFs along with ETFs like PSA and CASH seem to be a good place to park some cash for a while. What would your opinion be on the safety of either type of ETF and any advantages or disadvantages of either class of ETF?
Ken
Ken
5i Research Answer:
They are very similar, and very safe, just not guaranteed in the sense of the word. With investments in high interest savings, or very short term treasuries, risk is essentially zero, but not actually zero. We would choose based on indicated yield and liquidity (note, for example, that TCSH is very small right now and not suggested). We would be comfortable with any of the others today. MCAD is only $45M but will likely grow.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in PSA.