Looking for a temporary cash alternative for our current market conditions, I looked at performance from all bond classes and similar, aiming for a fund that would resist going negative and produce a reliable return that approximates the current inflation expectation of around 4%. This is where I ended up.
https://www.ftportfolios.com/Retail/Etf/EtfSummary.aspx?Ticker=FPE
https://finance.yahoo.com/quote/FPE
At 4.5% yield (-0.85 expense) it should do the trick, plus the price behavior is steady (and positive) and resists mild drops. It did take a dive with everything else during the pandemic, but I don't think we are facing that kind of market instability right now.
My thinking is that it could be an alternative to holding cash for short periods. Dividends pay monthly on the 3rd week.
The holdings are BBB - BB class liabilities, so they can get risky if things get really bad, but I don't think we are at that type of risk now.
Submitted October 01, 2021 at 12:14AM by Banner80 https://ift.tt/3zYc2Pi
