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Purpose High Interest Savings Fund (PSA)
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Vanguard Balanced ETF Portfolio (VBAL)
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Global X High Interest Savings ETF (CASH)
Q: Good afternoon,
I have around 18k in my FHSA currently all cash, I'm looking for some investment options to allocate that cash to but not sure of the best practice. I'm looking at purchasing my 1st home in 8-12 months. Would it be best to invest the 18k in different ETFs? Should I allocate 1/3, 1/3, 1/3? What would you recommend as diversification as well as some ETF's you think would be appropriate for my current situation.
Thanks!
I have around 18k in my FHSA currently all cash, I'm looking for some investment options to allocate that cash to but not sure of the best practice. I'm looking at purchasing my 1st home in 8-12 months. Would it be best to invest the 18k in different ETFs? Should I allocate 1/3, 1/3, 1/3? What would you recommend as diversification as well as some ETF's you think would be appropriate for my current situation.
Thanks!
5i Research Answer:
We would be very cautious with a time frame of 8-12 months. With a defined use of cash, we would not want any equity exposure. A cash ETF such as PSA or CASH for us would be preferable. A balanced ETF such as VBAL might be an option if one really wanted to take on some risk, but we would not if we were buying a house within a year or two.