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Purpose High Interest Savings Fund (PSA)
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Pathward Financial Inc. (CASH)
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Global X Cash Maximizer Corporate Class ETF (HSAV)
Q: I submit this question again since it did not seem to go through, sorry if is doubled .I intend to invest cash very progressively in 2025 ,since I consider as ''not totally impossible'' that (among other world factors ), the economic situation in Japan could lead to a sell-off of their US bonds , and have an impact on word economy and eventually on interest rates. On Yahoo finance website : YTD daily total return indicates : 0,97% for CASH,1,08% for PSA,and 0,77% for HSAV ! Does this means that lower NAVs counterbalance the yields after one year ? (but NAV looked relatively stable..).Once I can finally understand those numbers, I wish to choose the most efficient ETF in a non registered account if you could suggest one of the 3 ,considering all factors , as capital gain fiscal advantage of HSAV, VS total Yields and NAVs tendencies. Many thanks for your always very useful clarifications
5i Research Answer:
Looking at PSA as an example, indicated yield is 2.56%. YTD return is 1.08%, but the year is not half over. If we annualize YTD and account for the extra month (June) and potentially lower rates ahead, the rates are close and we would not expect asset value decay here. The 52 week range on the ETF is $50.00 to $50.22. Note that in a bond sell-off rates will rise, and high interest ETFs should start paying higher rates under such conditions. We would be comfortable with any of these three. The attractiveness of HSAV is going to vary with one's tax rates. In some cases, it will be a wash vs higher yields elsewhere. But for higher tax brackets we would lean to HSAV, if one can buy on a day when the premium to NAV is not high.