Q: Hi 5i team,
I would like to park some cash for about one year, which is better and safer ZST or BPF.UN ? Is there any better option other then these two?
Thanks,
George
I would like to park some cash for about one year, which is better and safer ZST or BPF.UN ? Is there any better option other then these two?
Thanks,
George
5i Research Answer:
We would consider ZST far better than BPF.UN. First, it is a diversified ETF and not a single company. It invests in ultra-short bonds and the short maturities limit risk. We would be comfortable using it as a cash parking space. CASH and PSA are other options, which we would consider marginally safer, but with lower yields (about 0.30% lower).