These ETFs let you get more from your cash

Article Excerpt

The attraction of holding cash has diminished greatly over the past decade due to a low interest rates. Still, many investors hold it in their investment portfolios. That’s not necessarily to earn income, but as a byproduct of their normal portfolio activities or as a reserve, so they can take advantage of market opportunities as they arise. Here are three low-risk money market ETFs that let investors hold cash and at the same time earn reasonable income. (See more information in the box on page 74, as well as the supplement on page 80.) PURPOSE HIGH INTEREST SAVINGS ETF $50.04 (Toronto symbol PSA; TSINetwork ETF Rating: Income; Market cap: $1.7 billion) invests in Canadian-dollar, high-rate savings accounts with Canadian banks and credit unions. A maximum of 50% of the fund’s assets may be allocated to any single institution. The risks involved with this investment include the default (or counterparty) risks of the institutions holding the deposits, plus the possibility that interest rates may decline in…