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Global X High Interest Savings ETF (CASH $50.02)
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Global X 0-3 Month T-Bill ETF (CBIL $50.04)
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iShares 0-3 Month Treasury Bond ETF (SGOV $100.45)
Q: I have been trimming a few positions in my TFSA as they've gone up quite high and now I have $40,000 USD and $4000 cad. I've been waiting to buy certain stocks on the dip and will DCA some of these funds into market but I was thinking I should put it in some type of interest receiving liquid option in the meantime. What you you recommend? I was thinking Cash.to for canadian dollars? SGOV for USD? I believe Sgov would trigger that 15% dividend withholding tax in the tfsa but it's better than swapping to cad and back to usd cuz my instituation charges i think 1.5% each time. Are there any other options you would recommend? for liquidity I can sell and have access same/ next day? thnks!
5i Research Answer:
We would be fine with CASH, PSA or CBIL. We might prefer a US dollar money market fund of SGOV but would be fully comfortable with SGOV as well. We certainly would prefer to keep US dollars in US-currency investments to avoid charges. We can also suggest HSUV.U, which does not pay distributions so this eliminates any withholding tax issues.