Q: Do you consider SPLT a safe investment? Seems a no-brainer compared to an interest savings account at 2.55%.
Can that chart continue on that trajectory?
Thanks, Mark
Can that chart continue on that trajectory?
Thanks, Mark
5i Research Answer:
SPLT yields 5.83% and is up 16% over one year. While it has done well, and we think it is a decent ETF for income and some safety, it is important to note it should not be compared with a savings account. Nothing is guaranteed here. In 2022, when interest rates and inflation spiked, preferred shares (what it owns) got hit, HARD (the fund was not in existence then). We do not know how managers will perform in a downturn. We would be comfortable owning it, but investors should understand the differences. It owns preferred shares of split-share companies, which themselves are different than regular corporations.