Now is the ideal time to study the potential disadvantage of the high interest savings accounts ETFs investors have been Flinging themselves into with abandon.
In a typical week, these ETFs accounted for four of the top four sales funds and four of the top 10 of those funds. Investors are obsessed with the five percent returns, the liquidity of a savings account that trades like a stock and the minimal risk of losing money.
HISA ETFs demand a price of $50 per unit. The unit price will rise mildly as interest accumulates through a month, then drop back to $50 when interest is paid to unitholders.
Raj Lala, the president and CEO of Evolve ETFs, said the price of a HISA ETF should not fall below $50.