BetaShares AAA ETF (ASX:AAA)
The BetaShares AAA ETF provides investors with exposure to Australian cash, without the need to open a bank account or have capital locked up in a term deposit.
What does the AAA invest in?
The BetaShares AAA ETF invests in a number of deposit accounts from Australian banks or APRA approved ‘ADIs’ (Authorised Deposit Institutions).
What do investors use AAA for?
The interest rates earned from AAA can be higher than what you’d get with most savings accounts or term deposits. However, the main benefit of the AAA ETF versus a term deposit, is that AAA provides greater flexibility for essentially the same interest rate. Taking your money out of a term deposit early can mean losing all interest, whereas the AAA ETF can be bought and sold like shares and pays a monthly distribution.
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