Investment Q&A

Q: Hi,
Relying on the adage that there are "no stupid questions", can you confirm that the principal is guaranteed in PSA? I couldn't find that explicitly stated anywhere, other than the statement that there is no lock-up, which means something else to me.

Thanks
Robert

Q: Hi Team,

I am holding some cash that I intend to hold for 12 -15 months at which time I will be closing on some real estate and will need the money. Do you have any recommendations for a safe 12-15 month hold for these funds where there is still some opportunity for a modest return?

Q: This question may be a little premature however with on line discount brokerages such as CIBC Investors Edge about to charge fees to buy and sell Mutual funds where can I find a place to park short term cash?
I have been using Investors Edge high interest accounts which pay very little however are easy to use. Being a Mutual Fund this will incur fees in the future?
As I have twelve (12) different investment accounts this can become a little pricey for no upside other than minimal interest.
I am now looking for another home for short term cash . Ideas would be greatly appreciated.
Thanks

Q: Hi Everyone at 5i! I need your advice. I have a non registered portfolio, half I have invested in Canadian and US growth and income stocks. The other half I would like to invest in something more secure. GICs come to mind, but with low interest rates, inflation and unfavourable taxation, they seem like a loosing proposition. Any low risk suggestions??? Thank you for all that you do!!! Cheers, Tamara

Q: fyi
Question was asked where to park cash for short periods that is readily available. You suggested PSA ETF. Looked this up and I think the yield is .57%. EQ Bank (virtual) currently pays 1.25% calculated daily and is CDIC backed. Money can be transferred between EQ and your bank at any time (up to 3 days to clear). There are other high interest savings opportunities but for the past while, EQ has paid the highest rate.

Q: I have some cash in a discount brokerage which is earning nothing in interest/dividends. Can you please suggest where I could put this cash (still within the same account) to earn at least something? Something I can cash out on demand.
Thanks for your help.

Q: Hi, how can Purpose can fund a 0.6% distribution with a 0.15% management fee given how low bank deposit rates are? Thanks.

The fund documentation states ‘Deposits securely invested in cash accounts with Schedule 1 Canadian banks’.

Q: Some of our GICS have come due. I went on to buy new ones and was shocked at how low the rates are... 0.8 was the highest I could find for a 1 year. I was thinking about buying the PSA ETF instead until rates go up. It's only slightly less at 0.6 and can be sold at any time . What do you think of this strategy? Any risks with PSA that I'm not aware of?

Q: I have 25K that was in a GIC, making basically nothing (or losing money when considering inflation). Can you recommend something that is likely to retain the principal and earn more in 2 years than the 1.5% 2-year GIC? Thank you.

Q: Hello, could you please provide some of your favourite ETF's to fill the fixed income portion of a portfolio?

What about cash?

Q: About 25% of my portfolio is in cash, enough for 5 years of cash needs. The problem is that it earns only 0.2%. Now I am thinking of putting this cash in 5 or more high quality Bond ETFs. Is this a right move? If so, could you give few names? Thanks.

Q: Looking for both US and Cdn (GIC replacement) ideas for an 80+ year old, looking for some income, not looking to shoot the lights out. Sitting in cash is tough. 4-6 suggestions would be appreciated. Thanks.

Q: I have cash sitting in my open on line trading account earning nil at the moment. Can you recommend anything other than a GIC or term deposit with no fees that is reasonably safe and accessible.
thanks.
Doug

Q: Hi, my high interest savings account currently pays a ridiculous 0.1% interest. Could you please recommend me any alternatives (ex.: ETF, CPG) as to where I could park a large amount of $$$ over the next 10 months?
Thanks in advance.

Q: Hello could you tell me of any ETFs you could recommend with high interest saving for putting cash in that you are not using say in a trading account and typically what do they pay,... thanks for the great service
PS Peter will you or Ryan be on BNN anytime soon

Q: I am with TD and they do not list this ETF (PSA) wish they did - is there a TD product that is available that compares.

Q: I am a client at Disnat.
I would like to have a suggestion on how best to use my cash until I decide what type of investment I want to make. Is there a mutual fund or ETF that I could use? Thank you

Q: Hi, I'm 100% equities and when holding cash waiting for opportunities I've been parking it in PSA. With the yield so low now, do you have a few other suggestions for almost cash like bond ETF's that have low risk/volatility and low MER and have a higher yield (~2-3%)? Usually hold less than 5% cash in my portfolio and holding period <6months. I was looking at the Vanguard or iShares ETFs for options. Thanks!

Q: For you previous question you noted PSA and CSAV, however, neither are available on RBC Direct Investing? Any options for USD?

Q: Do you have any recommendations on safe ETFs to park some CAD and USD that will be needed in the next 1-2 months and earn a little yield?