For many investors who believe the current market volatility levels are simply too high to justify being invested in the market right now, one might notice that cash earns practically nothing for most investors in most money market accounts right now.
This has been the case for quite some time now, at least ever since the financial crisis when the Federal Reserve of the United States lowered rates to zero and indicated we’d be in a “lower for longer” interest rate period for some time.
Fast forward more than a decade later, and rates are back to practically zero in many more countries around the world (and bond yields have gone seriously negative in many countries), making the situation an ongoing one for investors who have chosen to park cash.
One great option for Canadian investors looking to squeeze a little juice out of the lemon as we wait for stock markets to eventually calm down is the BMO Ultra Short Term ETF (TSX:ZST).
This ETF has paid out a yield of approximately 2% a month ago (though these amounts do fluctuate), but nevertheless does pay out a yield which is generally higher than money markets or investment account interest for those with substantial sums stocked away.
IF you’re planning on being on the sidelines for a few months as I am, it may make sense to get comfortable and settle into an ETF like this that can provide some much needed yield with relatively low risk.
Invest wisely, my friends.
