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Dynamic Active Ultra Short Term Bond ETF (DXV $19.67)
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Dynamic Active Preferred Shares ETF (DXP $24.61)
Q: Looking to park cash for 1 to 2 years and would like your comparison and assessment of these etf and recommendation. Thanx.
5i Research Answer:
Both are actively managed funds. DXV is a very short-term bond fund while DXP is a preferred shared fund. DXV charges a 0.34% fee, has net assets of $157M, and pays a yield of 6.3%. DXP charges a 0.65% fee, has net assets of $616M, and pays a yield of 5.8%. DXP has greater potential for capital appreciation as well as pays a high yield. It is up 33% over the last year vs DXV at just 6%. We DXV is the lower risk option and is almost comparable to a high interest savings account ETF. DXP has greater return potential but is riskier and has shown more volatility. We lean DXP between the two options despite the higher fee but it depends on ones risk tolerance.