- Global X Active Ultra-Short Term Investment Grade Bond ETF (HFR)
- Purpose High Interest Savings Fund (PSA)
Q: Peter and Team, I raised cash progressively by trimming a few different positions from my stock portfolio (basically mirror of Balanced Equity Model Portfolio) over the last 6 months to reduce risk a bit as I have been and am still concerned about the markets (high debt levels, rising rates, very high P/E's, etc.). I put some of the proceeds in HFR. I currently have approximately 5.7% of my overall portfolio in HFR. I also have approximately 21% of the portfolio in straight cash. I want to put this money to work in something that won't crash with the markets (if they do) and recognize this means low return/low risk. How much should I be comfortable in putting in a single ETF like HFR? I've also been looking at running a small 0 - 90 day fixed income book to generate approximately 1.15% annually or so. Ideally, I'd just drop a bunch of cash on my mortgage but my significant other is concerned about taking that cash for that reason and not keeping it invested for the long term.
I digress. Thoughts on concentration risk with HFR and other low risk, low correlation ideas to make some return on my cash position would be greatly appreciated.
I digress. Thoughts on concentration risk with HFR and other low risk, low correlation ideas to make some return on my cash position would be greatly appreciated.