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Global X US Dollar Currency ETF (DLR)
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Global X US Dollar Currency ETF (DLR.U)
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SPDR Bloomberg 1-3 Month T-Bill ETF (BIL)
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iShares 0-3 Month Treasury Bond ETF (SGOV)
Q: Can I get your thought on DLR/DLR.U vs. SGOV or BIL for parking $300K in US cash for a 4 months period? The yields are very close and additional consideration for DLR/DLR.U is that the distributions are paid every 3 months, so the holdings can be sold prior to ex-dividend date to get capital gains instead of income.
5i Research Answer:
We would be very comfortable with DLR, and from a tax perspective there is an advantage if one can switch to capital gains. Fees are a bit high but these are already reflected in yield.