Anyone using MINT ETF for their cash?

[njhowie]

I have accounts with Merrill Edge and Robinhood, neither which pay interest on cash balances. I'm considering pushing a good chunk of my cash into MINT ETF which seems like a good alternative to a money market fund and is available through both Merrill Edge and Robinhood utilizing commission-free trades.

The long-term chart looks rock-solid and it pays monthly.

http://www.pimcoetfs.com/Funds/Pages/PIMCOEnhancedShortMaturityStrategyFund.aspx

https://www.morningstar.com/etfs/arcx/mint/quote.html

Thanks.

 

[Ducati52]

I've not used MINT, but I know people who have and I've researched it. I think it depends what you want to do with the money, and if you're willing to accept additional risk (granted, very slight) of loss of capital to achieve slightly higher returns.

I'm approx. 3 years out from retirement, so I'm still in contribution mode, but I do have about 40% of my portfolio currently in cash/bonds, so return is important. But so is capital preservation, as I intend to deploy some of the cash back into equities in the case of a market decline.

Personally, I use Vanguard Treasury Money Market (VUSXX). It returns slightly less than MINT, but invests solely in short-term US Treasuries rather than bonds. They seek to provide a stable $1 share price, and have a long track record of doing that, but that's not guaranteed.

Another option is a Money Market account at an internet bank like Ally, which is FDIC insured and currently paying 2.20%

 

[COcheesehead]

I use MUB for my short term cash. Yes, it has a bit a risk to it, but not much. Tax free yield right now is about 2.47% I keep very, very little true cash. There are too many other sources of immediate funds if I need something within hours. Most of my expenses are known 30 days or more out.

 

[njhowie]

Thanks guys - appreciate the replies.

I would gladly choose a true money market ETF if there were one, but of the few that I've found which are close, MINT seems the closest/best which Merrill Edge and Robinhood allow to purchase.

Ducati - I have/want to keep the cash balance in the brokerage accounts at Merrill and Robinhood, so an ETF strikes me as the most straightforward way to accomplish it. I do have other accounts which pay money market rates (like Fidelity SPAXX/FZFXX), however I don't want to be ACHing the money around when I want to purchase something or after I sell.

COcheesehead - they both do allow purchasing MUB. However, MUB has duration of about 6 years which is a bit out there for what I'm looking for. MINT is down around 3 or 4 months.

Thanks again for the inputs.

 

[Sunset]

How about SPTS as the fee is extremely low .07% compared to the .42% of MINT

 

[njhowie]

How about SPTS as the fee is extremely low .07% compared to the .42% of MINT

Thanks! I need to check that one out.

 

[Spock]

Sorry to dig up a dead thread, but MINT showed up on my radar last night after googling JPST (JP Morgan Ultra-Short Income ETF)
Any updates on MINT, SPTS, or other ultra-short term bond funds in lieu of MMs?

 

[Onward]

MINT dropped 4.8% in March. I don't think it's equivalent to a MM fund, unless it's one that breaks the buck in times of stress.

 

[Montecfo]

Not sure it has returned enough historically to make it interesting as a cash alternative, particularly given ETF format and the drawdown in March.

Perhaps it will be better in our current lower rate environment.