Q: The price of HSAV is the same as 2.5 months ago and the premium shrunk to 0.14%, which seem to be extremely low considering the tax advantage of HSAV. Is it because there are a lot of sellers and nobody wants to keep money in cash these days? Does it have something to do with the CDN$? Or there are other reasons for such a poor performance of this fund lately?
5i Research Answer:
HSAV owns Canadian securities/deposits and trades in C$, so it should not be currency related. Premium today is 0.189% so it has risen a bit. One year return is 2.25%. With rates heading lower, there is likely simply less demand for such ETFs, and also at lower rates the tax advantages are less impactful, so these are likely contributing factors.