Larry Berman CFA, CMT, CTABMO Ultra Short-Term Bond ETF (USD)ZUS.U.TOCOMMENTDec 15, 2025
ZST vs. ZUS.U -- for a safe investment to hold cash.
ZUS.U is US exposure. Money market rates and short-term corporate rates in the US haven't come down. The BOC has rapidly cut interest rates, while the Fed is just starting. So you'll get a naturally higher yield in the US.
The difference is if you need that USD yield and income. Yes it's a higher yield, but now you're exposed to the US dollar rather than just a CAD investment. You have to look at your currency exposure too, not just compare the yields.
ZUS.U is US exposure. Money market rates and short-term corporate rates in the US haven't come down. The BOC has rapidly cut interest rates, while the Fed is just starting. So you'll get a naturally higher yield in the US.
The difference is if you need that USD yield and income. Yes it's a higher yield, but now you're exposed to the US dollar rather than just a CAD investment. You have to look at your currency exposure too, not just compare the yields.