Introducing Our USD Cash Yield Portfolio

21 September 2023

Want to earn a rate on your cash with ultra-low risk? You can now invest in short-dated US treasury bonds with a yield of 5.4%* p.a.

*The yield to maturity is provided by the fund manager and is not a guarantee for future returns. Yield as of  31 August 2023.

Bond yields are currently at decade highs, so it’s a great time to consider putting your cash to work in a high-yield, ultra-low-risk portfolio. Our USD Cash Yield  portfolio fits the bill with exposure to short-dated US government bonds with remaining maturities between 0 – 3 months.

📱 In the app, select Flexible Portfolios > Start with a template portfolio > US Cash Yield

An overview of our USD Cash Yield Portfolio:

✔️No lock-in period

There are no restrictions on withdrawals and transfers.

✔️No minimum investment amount

Start investing with $5, $500, $50,000 HKD or more - it’s up to you!

✔️No cap on the balance that can earn returns

Earn the full rate on any amount.

✔️It’s ultra-low risk

US treasury bonds are backed by the US government.

✔️Helps protect against inflation

Yields are correlated to rising interest rates.

Firstly, what are short-dated US treasury bonds?

Short-dated US Treasury bonds are also known as Treasury bills (T-bills). They're debt securities issued by the US government with a maturity of one year or less, making them highly liquid.

How is the USD Cash Yield different from fixed deposits?

Many fixed deposit accounts require a 6–12 month lock-in period and minimum deposit amounts. On top of that, fixed deposit accounts may have a cap on the balance that can earn returns, as well as other investment, insurance, or salary requirements.

With our US Treasury portfolio, there are no lock-ins, no minimum or maximum deposit amounts, and no other requirements to earn the full rate.

Who is the USD Cash Yield good for?

Everyone. Since US Treasury bonds are ultra-low risk and liquid, it’s a great way to manage your cash.

Cash management should be part of any financial plan, no matter your net worth and risk tolerance. An ultra-low-risk, rate-earning cash management portfolio protects your money from losing too much of its value to inflation. It also protects your money from any sudden market dips just as you might need to withdraw it.

You can use our USD Cash Yield portfolio to prepare for your short-term goals, such as:

  • Getting ready to make a downpayment on a property
  • Saving up for that year-end holiday
  • Using it to dollar-cost average into a long-term investment portfolio

For financial goals with longer time horizons, consider investing in one of our General Investing portfolios instead.

How risky are US Treasury bonds?

US Treasuries are backed by the US government, making them virtually one of the safest investments around. The US government has a long history of meeting its debt obligations since it can pay off its debts by raising taxes or printing more money. The only credit risk associated with US Treasuries would come from the highly unlikely scenario that the US government would default.

How to buy US Treasury bonds?

You can invest in US Treasuries as part of our Flexible Portfolios offering. To create a portfolio in the StashAway app:

📱 In the app, select Flexible Portfolios > Start with a template portfolio > USD Cash Yield

*The yield to maturity is provided by the ETF fund manager and is not a guarantee for future returns. The latest annualized yield is as of 31 August 2023, and may change depending on market conditions

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