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Tempted to Mimic Mohammed El-Erian's Move Into Cash? Check Out These ETFs

Cash-like exchange-traded funds may be a good compromise for investors looking to eke out a little income
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Photographer: Pete Marovich/Bloomberg

The news that Mohamed El-Erian has his portfolio largely in cash has many investors wondering if they should follow suit. But what may make sense for a megamillionaire’s portfolio isn’t necessarily a good move for people with much more modest holdings. 

Putting aside the fact that El-Erian is timing the market, not everyone can afford to move into cash if it means giving up an income stream. But if average investors are tempted to move some money out of the market, actively managed “enhanced” money-market exchange-traded funds may be a good option. These ETFs offer a way to earn some income and ward off any bite from inflation without taking on much risk.