Investment Profile: Park My Cash

One of the keys to smart investing is diversification, or not putting all of your eggs in one basket. You can do that by spreading your investments around to many different companies, parts of the world, and industries.

Another way to diversify is to invest in different types of securities. For example, many investments in stocks are volatile – the prices zig-zag up and down, with the goal of growing over the long term. Park My Cash is different. Instead of aiming for growth via stocks, it’s an investment in bonds, designed to pay you dividends every month. If you like the idea of having some of your money in an investment that tends to pay dividends, with lower risk and lower returns, consider Park My Cash.

What is this investment all about?

Big companies and governments borrow cash to fund their growth. You can lend it to them, and in exchange they will pay you interest. With Park My Cash, you can get a piece of the action. While the overall market has zigged and zagged, Park My Cash has remained relatively stable over the past year. Park My Cash is officially called PIMCO Enhanced Short Maturity Active ETF (MINT).

What companies does this investment include?

When you lend money to someone, you want to be sure they can pay you back. Bigger, more stable companies and governments tend to follow through on their promises to pay. There are over 600 entities in Park My Cash, including Anheuser-Busch, Barclays Bank, Goldman Sachs, Bank of America, and AT&T.

Who is this investment for?

Park My Cash may be for you if you are looking for a way to diversify your overall portfolio, by adding an investment designed to pay you dividends every month, with lower risk and lower returns. Over the past year, Park My Cash has paid annual dividends of more than 1% – not too shabby!

Why did it make the cut on Stash?

US News and Forbes consistently rank the fund behind Park My Cash as one of the best bond ETFs on the market. It has a low, 0.35% expense ratio, so the fund isn’t over-spending on marketing, administration, and management. Finally, the company behind the fund is PIMCO, which manages over $1.43 trillion in assets.







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