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Purpose High Interest Savings Fund (PSA)
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CI High Interest Savings ETF (CSAV)
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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 have money invested in non-registered accounts which I will need in 1-3 years for a downpayment on a house.
Am I correct that money needed in a 1-3 year time frame should not be invested in the markets ?
If so, what should be done with this money ? Any "money" ETF s to consider ? Thank you !
Am I correct that money needed in a 1-3 year time frame should not be invested in the markets ?
If so, what should be done with this money ? Any "money" ETF s to consider ? Thank you !
5i Research Answer:
Everyone has different risk parameters, but we think any money that is needed in one to three years should not be in equities, or at least a high portion of equities. Markets, at times, can go down a lot. Also, in a few historical periods, markets can decline two years in a row. Three years of decline is more rare, but has still occurred a few times. A house payment could decline significantly if one's timing was bad. Generally, one can 'park' cash safely in GICs, treasury bills, government bonds held to maturity, money market funds, or high-interest ETFs. ETFs such as PSA, CASH, CSAV are all solid options in our view.