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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)
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High Interest Savings Account ETF (HISA)
Q: The four referenced cash accounts pay roughly the same rate of return. Which of these are best in terms of risk and liquidity. What would you recommend for cash portions of the portfolio and which etf if any would you avoid. Thanks
5i Research Answer:
In order of highest liquidity to lowest:
PSA has an AUM of $5.4B, and an MER of 0.15%.
HISA has an AUM of $5.1B, and an MER of 0.15%.
CASH has an AUM of $3.5B and an MER of 0.11%.
HSAV has an AUM of $2.2B, and an MER of 0.2%.
We would be most comfortable with PSA and HISA, and HSAV has a slightly different payout method, whereby it does not issue distributions directly, but rather reinvests the interest earned back into its NAV.
While we cannot personalize responses and weightings, in general we feel a cash balance between 5% to 10% can be appropriate for certain investors. A lot depends on individual needs and comfort levels.