Q: A question about this savings product came up the other day. When I search, it shows as trading on "CHI"; what is that exchange? Is the fund itself CDIC insured and if not, are its holdings? Will the yield fluctuate every month? Any other info you can provide will be appreciated. Thanks
5i Research Answer:
HISA trades on the NEO Exchange, an alternative stock exchange. There is nothing 'wrong' with NEO it is just newer, and can facilitate trading for smaller companies. But HISA is $1.8B. The fund is NOT CDIC insured. It holds high interest deposits in several Canadian banks and gets institutional rates. Yield will vary with short term interest rates. In 2023 monthly distribution has ranged from 17.7c (May) to 25.4c (Sept).