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.
This material has been distributed for informational and educational purposes only, represents an assessment of the market environment as of the date of publication, is subject to change without notice, and is not intended as investment, legal, accounting, or tax advice or opinion. StashInvest assumes no obligation to provide notifications of changes in any factors that could affect the information provided. This information should not be relied upon by the reader as research or investment advice regarding any issuer or security in particular. The strategies discussed are strictly for illustrative and educational purposes and should not be construed as a recommendation to purchase or sell, or an offer to sell or a solicitation of an offer to buy any security. There is no guarantee that any strategies discussed will be effective.
Furthermore, the information presented does not take into consideration commissions, tax implications, or other transactional costs, which may significantly affect the economic consequences of a given strategy or investment decision. This information is not intended as a recommendation to invest in any particular asset class or strategy or as a promise of future performance. There is no guarantee that any investment strategy will work under all market conditions or is suitable for all investors. Each investor should evaluate their ability to invest long term, especially during periods of downturn in the market. Investors should not substitute these materials for professional services, and should seek advice from an independent advisor before acting on any information presented.
Past performance does not guarantee future results. There is a potential for loss as well as gain in investing. StashInvest does not represent in any manner that the circumstances described herein will result in any particular outcome. While the data and analysis StashInvest uses from third party sources is believed to be reliable, StashInvest does not guarantee the accuracy of such information. Nothing in this article should be considered as a solicitation or offer, or recommendation, to buy or sell any particular security or investment product or to engage in any investment strategy. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. StashInvest does not provide personalized financial planning to investors, such as estate, tax, or retirement planning. Investment advisory services are only provided to investors who become StashInvest Clients pursuant to a written Advisory Agreement. For more information please visit www.stashinvest.com/disclosures