You may have noticed that in all our portfolios, the cash share is invested in the ETF SHY. As this has triggered several questions, we believe this post may be of interest for other members.
In financial theory, cash is usually defined as the risk free asset. Short term U.S. Treasuries are commonly viewed as the risk free asset, hence cash and T-bills are close substitutes. Associated with the risk free asset is the risk free ...Continue Reading →