ICSH ETF

ICSH: An Effective Cash Substitute

The BlackRock Ultra Short-Term Bond ETF is a better way than CDs and money markets for holding cash as it has more potential capital appreciation and a higher yield. ICSH has had much better returns than money market funds over the last 10 years. We rate ICSH a "strong buy."

Most of the macro data points to a higher for longer situation. Indeed, reflexivity effects even work against Fed objectives and may force them to crank things up. ICSH gets investors a low duration exposure that isn't at risk as rates potentially rise further, or trounce newfound expectations of a pivot.

The ultra short-term corner of the bond market has been hitting a 52-week high lately.

The BlackRock Ultra Short-Term Bond ETF is marketed as a cash replacement tool, offering higher yields than money market funds. ICSH outperforms 'cash' in most scenarios but can underperform during rising interest rate environments and is exposed to credit risk. I prefer the safety of treasury bills for cash allocation due to zero credit risk and little duration risk.

NEAR: Yield Goes Vertical To 6%