Iād really like to have the option of parking money in a money market fund in order to keep a competitive interest rate given how bad banks are at passing cash rates on to savings. It would also mean using the ISA allowance which is a nice benefit and adds flexibility to investing the money later down the line.
Best I have been able to find is Ā£ERNS which seems like a decent option but still looks potentially like a slightly higher risk option to a true money market account.
Not really. QUID has been trading from between 99 to 103 pounds per share for a LONG time, and now paying out ~30p per month. MINT is much the same, and the acc versions have all got too rich for my blood, but they are a steady increase so if you put in money when it was more affordable to actually buy a share vs the ~1k$ per share now then you would have had a stable return bases off of the prevailing interest rateā¦
QUID essentially functions mostly as a deposit account. It pays out essentially interest of ~30p per month currently per share and the value tends to stay more or less constant at ~Ā£100. If the economy tanks and GBP drops then I suspect that your USD value of the investment would drop, but the GBP value would be the same. So if GBP/USD tanks to 1 and you have Ā£1k in QUID I suspect you would still have Ā£1K but instead of it being about $1.25k it would now be worth $1k. (If Iām grokking your question correctly.)
I love dividends so I know more about the dist ones vs the acc ones. QUID essentially pays out 0.34p per month, but it will be adjusted down or up depending on the prevailing interest rate. You can see the past 24 dividends here: QUID Dividends - PIMCO ETFs
Assuming that the interest rate stays high (~4-5%) then I would expect it to stay around the 30-40p per month. If the interest rate drops quickly then it will drop, but either way the underlying value of QUID should be about Ā£100 regardless. The 34p per month is in essence an interest rate of 4.08% assuming a QUID price of Ā£100. I see it more as a monthly savings account with a variable worth but like +/- 1% but giving a higher rate of interest. It also is quantised into large chunks so a minimum balance of Ā£100 and a minimum increment of Ā£100 also.
The accumulating ones are more of a buy and leave and the āinterestā is added to the value of the deposit. see:
You can see that over the past year the value of a share of XFFE went from $181 to $190 so an increase of $9. (If it were distributing it would have stayed at $181 but paid out a dividend of $9 over the course of a year)
If I were the evil emperor Iād do a 10:1 split of QUID to bring it down to a more reasonable cost, and Iād do the same to the accumulating ones occasionally splitting maybe every 10 years to keep the price ~Ā£10 .
