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Purpose High Interest Savings Fund (PSA)
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Global X Cash Maximizer Corporate Class ETF (HSAV)
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Global X High Interest Savings ETF (CASH)
Q: I was considering investing 300k into 2 or 3 of these picks below for almost guaranteed savings. This would be in a non registered holding company.
1. Horizons Cash Maximizer- HSAV (which you have pointed out is more tax efficient since they don't pay distributions and yield gains are building into escalating price, etc)
2. Horizons High Interest Savings-CASH which is straight up high taxation interest gains
3. Purpose High Interest Savings- PSA which is straight up high taxation interest gains.
Please advise if you have a preference for perhaps two picks at 150K, or all three at 100k for example.
Alternatively, if there is another TSX traded option that you suggest, i would look at that too. To be purchased via CIBC Investors Edge.
Thank you.
1. Horizons Cash Maximizer- HSAV (which you have pointed out is more tax efficient since they don't pay distributions and yield gains are building into escalating price, etc)
2. Horizons High Interest Savings-CASH which is straight up high taxation interest gains
3. Purpose High Interest Savings- PSA which is straight up high taxation interest gains.
Please advise if you have a preference for perhaps two picks at 150K, or all three at 100k for example.
Alternatively, if there is another TSX traded option that you suggest, i would look at that too. To be purchased via CIBC Investors Edge.
Thank you.
5i Research Answer:
Investors can still get slightly better rates on GICs, which of course have 100% guarantees (up to $100K). Oaken right now offers 5.25% for one year. The 'indicated' rates on the ETF are similar, even marginally higher, but will decline if rates do. But for the above, we are largely indifferent, but would suggest a combo of HSAV and CASH. Investors should use some caution on HSAV to ensure there is not a big premium on the day of purchase.