Now it is the ideal time to study the potential disadvantage of high interest savings accounts ETFs investors have been flinging themselves into with abandon.
In one typical week, these ETFs accounted for three of the top four selling funds and four of the top 10 stocks. Investors love the 5 percent returns, liquidity, and minimal risk of losing money, as it is essentially a savings account that trades like a stock.
HISA ETFs have a fixed price range of $50 per unit. The unit price will rise moderately as interest accumulates through a month, then drop back to $50 when interest is paid to unitholders.
Raj Lala, Evolve ETFs' president and CEO, said the price of a HISA ETF should not drop below $50.