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Purpose High Interest Savings Fund (PSA)
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Global X High Interest Savings ETF (CASH)
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High Interest Savings Account ETF (HISA)
Q: Dear 5i
Could you please confirm the MER's for the above stated high interest funds and that the stated 12 month yield is net of the MER . Also is it more important to go with the fund with the higher yield or the fund with the tighter bid/ask spread or the fund with the tighter 52 week differential or try to determine the best when considering all three factors knowing there is some compromises ?
Thanks
Bill C
Could you please confirm the MER's for the above stated high interest funds and that the stated 12 month yield is net of the MER . Also is it more important to go with the fund with the higher yield or the fund with the tighter bid/ask spread or the fund with the tighter 52 week differential or try to determine the best when considering all three factors knowing there is some compromises ?
Thanks
Bill C
5i Research Answer:
CASH has an MER of 0.11%, a gross yield of 5.4% and a net yield of 5.29%.
PSA has an MER of 0.16%, a gross yield of 5.45%, and a net yield of 5.29%.
HISA has an MER of 0.15%, a gross yield of 5.46%, and a net yield of 5.31%.
We prefer high-interest savings ETFs that have a combination of the largest AUM (in this case it's HISA and PSA at $5.4B and $5.6B, respectively) and the highest net yields. Given this, we would place HISA and PSA at the top of the list. Funds with a higher AUM will generally have a tighter bid/ask spread.