Holding Cash - Stocktrades Canada

I have a large balance of cash that will be used towards a construction project in about a years time. Aside from CASH.TO, what other safe investments would you suggest to look into for short-term holding. Ideally, looking to generate some holding income on the cash, but preference is for very stable vehicle to avoid material principal fluctuations. Thanks!

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Asked on April 9, 2025 5:13 pm

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I'd look to something like CBIL.TO or ZMMK.TO. CBIL is obviously going to be your "risk-free" return, as it is short-term treasuries that are backed by the Government of Canada.

The yields are not as attractive right now on the Canadian side than the US side as their policy rates are much higher than ours. Example being UBIL, which is the US Treasury ETF offered by Global X, pays around 3.7% compared to the 2.6% for CBIL. However, this obviously requires exchanging currencies which brings on a whole other element of currency risk.

CASH is solid and is virtually no risk, but there is SOME risk there of the default of the underlying institutions holding the cash in the savings accounts. CBIL would be considered risk-free, because it simply holds Canadian Treasury Bills.

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Posted by Dan Kent

Answered on April 10, 2025 8:13 am

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