Global X Ultra-Short Term Investment Grade Bond ETF (HFR.TO)

There is not much upside in a floating rate security in Canada right now. This is not a vehicle that is going to earn you very much return here.

This is just a place to park stuff. It is $10 a pop and then goes up and down $.10 or $.20. Nice and safe and simple.

(Top Pick Aug 14/15, Down 0.77%) It is essentially cash.

(A Top Pick June 11/15. Down 0.16%.) He uses this as a way to park cash. You are not at much risk of interest rates rising.

The play here is very simple, Park the Money. This is swap based, but it is about a 6 month duration and the price stays pretty good. You are not going to make any money, but you are not going to lose any money.

(A Top Pick May 29/15. Down 0.23%.) (All 3 recommendations are cash or cash equivalents. Being in cash has been a very profitable investment during this period of time.) This ETF is a great way of putting cash away, so that you can quickly liquidate at any time and quickly move into a seasonal trade that might come up.

(A Top Pick April 24/15. Up 0.02%.) A great alternative to cash during the summer. If you are afraid an interest rate rise is going to crush your fixed income position during the summer, a floating rate bond ETF is where you want to be. Use this as potential cash storage to take advantage of things coming up. If we get weakness through the remainder of June, take advantage of the summer rally. You can even buy some of the cyclical sectors in the month of July.

You want to set up your portfolio so that when the summer rally happens, (he thinks it will happen between now and the end of October) you have the ability to go into it. This is short-term corporate and government bonds, basically a form of cash, giving you the ability to take some cash out for investments. In the meantime, you pick up a little bit of return.

This is essentially his cash hoard during the summer. When he takes off his equity positions, he goes into this, which is basically a steady Eddie gainer. It gains quite consistently. It’s a portfolio of debt securities and hedges of the interest rates through using Swaps. If we do get a rate rise this summer, you could potentially benefit from this.

(A Top Pick Jan 31/14. Up 1.78%.) This was just a place to park money. This is swap-based and he is comfortable with this swap. The counter party on this is National Bank (NA-T), so he has no concerns with it at all.

(A Top Pick Dec 13/13. Up 2.63%.) This only has about a 6 month duration on the bond portfolio. Very consistent. Trades $0.10-$0.20 on $1. A swapped base product. This is pretty much core and he has it in most portfolios. Unlike a lot of bond ETF’s, this one does not have the problem of premium bonds. They are basically doing treasuries. A good place to park some money.

(A Past Pick July 31/14. Up 0.18%.) This is really his cash holding and allows him to create a market neutral portfolio, during a time when the market is rather volatile.

(A Top Pick April 22/14. Up 0.43%.) This is equivalent to a cash holding, and is about 32% of his fund right now. This is a short-term duration bond ETF, and provides a hedge against the volatility that is frequent at this time of year. He intends this to be his holding through until October.

(A Top Pick May 9/14. Up 0.46%.) Basically a money market instrument, and gives you a bit of extra return. Wanted to be very conservative at the beginning of May, so only went into select areas.

Floating rate notes reset periodically and so give you a bit of interest rate protection. Does not believe interest rates will go up any time soon. This is not risk-free. It helps mitigate some risk if interest rates rise but he thinks they won’t do that any time soon.