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  5. HSAV: How to explain the (unusual) stock 1. [Global X Cash Maximizer Corporate Class ETF]
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Q: How to explain the (unusual) stock 1.86 % decline from 107$ (fév.,. 2023) to 103$ (march 2023) ? since the only factor that I was considering when investing into this ETF was the premium, are there other factors to take into account in order to avoid a similar situation ?
Asked by Jean-Yves on December 13, 2023
5i Research Answer:

HSAV was trading at a premium to its NAV at that point, and on February 3, 2023, it announced the suspension of creating new units as it had reached an AUM of ~$2.0B. This suspension in new units sent the premium even higher, momentarily, however, when the US regional banking crisis hit in March, the premium fell sharply. The erosion of the premium at that time was likely due to investor concerns over rate declines because of the banking crisis, which would inevitably cause the ETF to trade closer to its NAV. 

HSAV currently trades at only a 0.03% premium to its NAV, and we feel that even in the event of rate cuts, the ETF is unlikely to trade at a significant discount to its NAV for long, meaning a decline of that magnitude from March is unlikely to occur.