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Email this7:30 pm
February 20, 2018
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Money market etf vulnerable to sell off discount wouldnt buy for short term
6:40 pm
April 6, 2013
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AltaRed said
…As for the ETFs, I fully understand the nature of the beasts. Duration is a key number and is pretty high for MINT at 0.48. I'd expect cash equivalent to have duration of about 0.083 (30 day commercial paper) or maybe upwards of 0.12 that holds 3 month T bills or in the case of FLOT and FLRN, floating rate ST notes, options, etc. None of that is true cash of course.
…
Duration doesn't really matter if one holds the fixed income or money market instruments to maturity. The problem with ETF's and bond funds is that they don't really mature.
For shorter-term US$, one can buy the US$ instruments directly. Scotia iTRADE doesn't offer much except their US$ GIC. BMO InvestorLine has a much better selection for US$.
These are quotes earlier today from BMO Investorline for US$25,000:
| Security | Days Left |
Price | Annual Yield |
| Enbridge Pipelines U$ 06Feb2020 | 20 | 99.893 | 1.928% |
| FirstBank U$ BA 21Feb2020 | 35 | 99.865 | 1.390 |
| FirstBank U$ BA 28Feb2020 | 42 | 99.842 | 1.356 |
| US Gov't T-Bill 26Mar2020 | 65 | 99.774 | 1.255 |
| US Gov't T-Bill 23Apr2020 | 93 | 99.675 | 1.262 |
8:15 pm
October 27, 2013
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Duration does matter so that one does know how long to hold, but you hit on the key issue. The holdings change daily as they roll over so data points change daily as well. A reason why many want to hold individual holdings to maturity instead of ETFs. Me included actually.
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