There are countless ways to hold cash in your investment account.
In the simplest form, you can just hold cash itself. But there are downsides to that. Specifically, cash doesn’t generally pay any interest.
Sweep programs are designed to take unallocated cash and invest it in a money market fund so that clients can generate a small additional yield on their cash holdings. They rarely make the difference between success and failure of an investment program, but can definitely be helpful at the margin.
We encourage clients to opt into Altruist’s sweep program for that reason, but clients are free not to do so.
