Cash ETFs to protect your portfolio

[261252]

QQQ not recommended for short term?Id like to do 5 yr investment and maximize return. The 20-30% is intriguing but you say that's a long term thing? I'm only interested in short term at this time.

Thanks.

S&P is best , according to Buffet, as it has historically outperformed everything else

When you say short term the risk between markets remains consistent so what risk are you willing to take ?
then divide your risk by half as if it tanks you will panic

NASDAQ is the riskiest but can wildly beat other markets over short term but will likely lose more hence the risk factor

Over long term S&P historically has been the winner

 

[jeff2]

S&P is best , according to Buffet, as it has historically outperformed everything else

When you say short term the risk between markets remains consistent so what risk are you willing to take ?
then divide your risk by half as if it tanks you will panic

NASDAQ is the riskiest but can wildly beat other markets over short term but will likely lose more hence the risk factor

Over long term S&P historically has been the winner

I wonder if Buffett considers the S & P a little too tech heavy these days.
Never bought the equal weight but we have some ETFs like EQL.

https://www.spglobal.com/spdji/en/research/article/worth-the-weight

 

[glamphotographer]

What's the difference between Cash ETFs vs GICs?

 

[glamphotographer]

I see it within my portfolio, I'll contribute towards the Canadian Money Market fund (ETF). Historically, it has a 4.49% return. I'll stop putting money into the markets until the shit storm is over. The stock market will always be rising forever, Trump won't be forever.

 

[stinkynuts]

According to chatgpt

A cash ETF and a GIC (Guaranteed Investment Certificate) are both low-risk investment options, but they differ in key ways. Here's a breakdown:

1. Liquidity
Cash ETF: Highly liquid. You can buy/sell it on the stock exchange any time the market is open.
GIC: Not liquid. Once you buy it, your money is locked in until maturity (unless it's a cashable GIC, which may offer limited flexibility).
2. Returns
Cash ETF: Pays interest (or yield) from a pool of high-interest savings accounts or very short-term bonds. The rate can fluctuate slightly.
GIC: Pays a fixed interest rate over a set term (e.g. 1 year, 5 years), guaranteed at purchase.
3. Risk
Cash ETF: Very low risk, but not zero. Not insured. Slight exposure to market risks and the financial institutions it holds deposits with.
GIC: Virtually no risk. Principal and interest are fully guaranteed (and usually insured up to $100,000 by CDIC in Canada).
4. Accessibility
Cash ETF: You need a brokerage account and may pay a small trading fee or commission.
GIC: Easily purchased through banks or credit unions, often without any fees.
5. Taxes
Cash ETF: Distributions are taxable as interest income unless held in a tax-sheltered account (TFSA/RRSP).
GIC: Same tax treatment—interest is taxed as income unless in a TFSA/RRSP.
TL;DR:
Want flexibility and access to your money? Cash ETF.
Want guaranteed returns and safety for a set period? GIC.




Cash etfs are very liquid and offer flexibility, such as buying the dip. GICs are fixed term, and not as flexible. That can cost you money in lost opportunities when you want to buy the dip.

Both carry virtually no risk, but gics have an extra layer of security of being insured, so they are 100% risk free, like treasuries.

Cash can be an excellent addition to any portfolio. In addition to offering piece of mind and lowering volatility in uncertain times, it can be deployed to pick up bargains when the market crashes. Many stocks are down 30-50%. If you have cash etfs anf buy these stovks, if the stocks go back to their original price, you could double your money.

Many people misunderstand the importance of holding cash in their portfolio, thinking that it doesn’t return as much.

Bonds can serve a similar purpose, but they lose value when interest rates go up.

 

[stinkynuts]

What percent of your portfolio should be cash?


ChatGPT said:
How much of your portfolio should be in cash depends on your financial goals, risk tolerance, time horizon, and current market conditions. That said, here are some general guidelines:

1. Emergency Fund (Not part of investment portfolio):
3–6 months of living expenses in a high-yield savings account or cash-equivalent accounts.
This is separate from your investment portfolio but important to keep in mind.


2. Cash in Investment Portfolio:

Conservative Investors / Near Retirement:
10–20% in cash or cash equivalents (like money market funds). Helps reduce volatility and gives flexibility.

Moderate Investors / Mid-Career:
5–10% in cash. Enough to take advantage of buying opportunities or rebalance without selling other assets.

Aggressive Investors / Long-Term Horizon:
0–5% in cash. More focus on equities or growth assets, since time is on your side.

3. Tactical Cash Allocation (for any investor):
You might temporarily hold more cash (10–30%) during high market uncertainty or while waiting for better opportunities.

 

[stinkynuts]

Right now is a period of high uncertainty and the consensus is that if you are mid-career or later it would be best to hold 10-30% cash, from what I’ve researched.

An alternative, if you don’t want to hold cash, is to buy extremely conservative and defensive stocks that do well in turbulent times such as coke, pepsi, utilities, etc.

 

[stinkynuts]

The Stock Market is CRASHING - Time to sell? #money #personalfinances #stocks #stockmarket

Big red numbers. Sharp declines. Panic is setting in—but is selling your stocks the right move?In this short, I share exactly what happened when I sold durin...

m.youtube.com

Generally it’s best to just hold and stick through these times though. Just keep around some cash though, it’s not a bad idea.

 

[jackie_white]

Buying

The Stock Market is CRASHING - Time to sell? #money #personalfinances #stocks #stockmarket

Big red numbers. Sharp declines. Panic is setting in—but is selling your stocks the right move?In this short, I share exactly what happened when I sold durin...

m.youtube.com

Generally it’s best to just hold and stick through these times though. Just keep around some cash though, it’s not a bad idea.

Buying ETF's during the dip but not what I originally planned. Out of the 20k I had laying around, I'm seeing that perhaps 5k right now would be safe?

Thinking of gold perhaps 10k purchase as a safe haven?

The remaining 5k would be held to explore safer things as you said, utilities, Pepsi.....

Wdyt of my plan?

 

[stinkynuts]

Buying

Buying ETF's during the dip but not what I originally planned. Out of the 20k I had laying around, I'm seeing that perhaps 5k right now would be safe?

Thinking of gold perhaps 10k purchase as a safe haven?

The remaining 5k would be held to explore safer things as you said, utilities, Pepsi.....

Wdyt of my plan?

No one knows what will happen. The trade war is far from over and anything can happen.

If you don’t need the cash right away, it’s probably better to just put the majority in an s&p index fund, and maybe 20% into cash/gold. That will preserve 20% in a crash and allow you to buy the dip.