Larry Berman CFA, CMT, CTA BMO Money Market Fund ZMMK-T BUY Sep 09, 2024

Holds money market funds.
Providing short tern interest rate exposure.
High yields good for investors (~5%).
Safe & easy cash alternative. 

In order to pay higher rates - added mortgage assets. Regulators not approving mortgage additions, so interest rates will fall on this product. 

He recommends "barbelling" it in with longer-term fixed income like ZAG.

Diversified. Perfectly fine (aka "boring") to hold a bit of this for a cash-like instrument.

Now paying 15-20 bps higher than a plain-vanilla high-interest savings ETF. Good if you need access to cash, never drops below where you bought it if you buy on the ex-dividend date. A cash-like position in your portfolio. Pays interest. 

The sawtooth graph is explained as money accumulating on short-term paper holdings, and then paid out all at once every month. You can, of course, automatically reinvest the proceeds.

A short-term money market ETF is not going to be impacted by currency volatility. They're Canadian plays in Canada. Even though the BOC is a lot more aggressive in terms of cutting rates because the Canadian economy is significantly weaker than that of the US. 

The more in money market you are, the safer it is because the time to maturity of holding assets is lower. So the shorter the duration, the safer. The more government, the safer, but also a lower yield.

For an enhanced money market yield, he really likes ZST.