Holding cash?

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I’m trying to build in a 10%+ cash position to make sure I can always take advantage of dips. My question is whether you are better off holding actual cash in the account or putting it in a low risk ETF that at least has some potential upside. Since questrade has no trading fees on ETFs, it would be easy to just sell what you need and buy what you want quickly. Thoughts?

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Asked on August 23, 2020 7:15 am
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Hi there,

If you goal is to hold cash, then your best bet is to hold the actual cash. Even low risk ETFs can have downside in the event of another downturn. The problem is, by the time it happens it is usually too late. Perhaps a high-interest savings account is the best course of action. If you need to 'sell' something to turn it into cash, there is typically always risk or downside. There are some good high-interest savings accounts out there that yield near 2% such as EQ Bank.

Mat

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Posted by Mathieu Litalien
Answered on August 23, 2020 8:32 am
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