Cash-like ETFs pay higher rates than regular savings
Having looked at the average deposit savings rate across the largest traditional banks in the US, we found it was only 58 bps. Online banks, however, such as Marcus by Goldman Sachs, offer high-yield-savings-account options for account holders. The shortest-duration cash-like ETFs have a current yield of 3.3%, but we feel the key reasons for the growth in the category’s assets are the wrapper’s daily liquidity and trading ease within a standard brokerage account. Also, as an alternative to other options such as CDs, ETFs don’t need a minimum investment amount and typically pay out income on a monthly basis.
Bloomberg
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