Additionally, instead of holding on to cash in a deposit account, investors can consider ultra-short-duration bond ETFs as a cash alternative. The actively managed PIMCO Enhanced Short Maturity ETF (NYSEArca: MINT) and Guggenheim Enhanced Short Duration Bond (NYSEArca: GSY) can both be used as a money market alternative. [Ultra-Short-Term Bond ETFs as Cash Alternatives]
MINT includes emerging market and developed market government, corporate, mortgage-related short-term investment-grade debt. The PIMCO ETF has a 0.69 year duration and comes with a 0.55% 30-day SEC yield. GSY also includes international government and corporate debt, and it can hold up to 10% of its assets in high-yield, junk debt. The Guggenheim ETF has a 0.33 year duration, 0.28% expense ratio and a 0.96% 30-day SEC yield.
PIMCO Enhanced Short Maturity ETF
For more information on bonds, visit our bond ETFs category.
Max Chen contributed to this article.