Q: Trading volume is good. Yield is similar to other cash savings etf but this has an advantage when held in a taxable account because it does not pay distributions. However it is trading for approx 1.5% premium. If there was no premium, I would buy it for a 9 month hold but the premium is more than half the yield I can expect for 9 months. Am I right that in my situation, pick another cash savings etf? To pay a premium is not a good idea for a cash etf no matter how good it is? What do you think? Thank you!
5i Research Answer:
The premium can and does vary, but for an investor with a short time frame the amortization of...