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Purpose High Interest Savings Fund (PSA)
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Vanguard Canadian Aggregate Bond Index ETF (VAB)
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Hamilton Enhanced Multi-Sector Covered Call ETF (HDIV)
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High Interest Savings Account ETF (HISA)
Our investment strategy for the income model portfolio is to target a portfolio yield in the 4% to 5% range, and a total return target in the 6% to 8% range. As of the latest report, the portfolio yield is right in the middle of the range (4.5%), and we are pleased with the year-to-date returns of 2.6% as of the latest update. We have not incorporated a high-yield ETF mainly because while they offer high yields (mostly above 8%), these often come with a covered call or a leverage component, both of which can act as a drag on price performance. For the purposes of the income model portfolio, we do not feel that a high-yield ETF is a good fit at this time, as the portfolio yield is right on target, and we are looking for additional return through price return.
While we cannot personalize responses, we are quite comfortable with all names in the income model portfolio, but in the context of a PRIF, we might also add one of the high-interest savings ETFs (PSA, HISA, etc.), an aggregate bond component (VAB), and if one is looking for a 'boost' on yield, we like HDIV.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in PSA.