Investment Q&A

Q: Hi 5i, I have a fair bit parked in CASH and PSA, enjoying the decent interest on the funds I dont want to have exposed to market volatility. My question is, if Canadian interest rates drop significantly sooner and/or further than US rates, would it make any sense to move out of CASH or PSA and in to something like HISU.U?

Understand, of course, this introduces the element of currency risk/volatility. But, ignoring that, would this strategy work to continue realizing interest rates of +/- 5% (assuming US holds longer)?

Thanks!

Q: I'm curious as to the lack of a high dividend paying etf in your Income portfolio? Also curious as to your thoughts on the partial use for these in a RRIF or PLIf account ( I am in MB and we have PLIF's). I'm setting up a PLIF and considering having more than a full position of HDIV, along with big stable dividend growers I'd pick from your favorites. I have a RRSP of the same value of the PLIF and investments in TFSA. I've been 100% equities all my life, eat volitility for breakfast. If you were setting up your own PRIF, looking to make significant income, what would it look like?

Q: How safe is something like CASH or PSA? I know they invest in the deposit accounts of banks and credit unions and are not protected by CDIC. But what is the worst case scenario? That one of the banks fails? Just trying to determine how much of a safety difference there is between these and a GIC. Thanks!

Q: Is there a US dollar version of these that would not have the 15% withholding tax?

Thanks for all your great work
Mark

Q: Any estimate as to the degree of interest reduction when interest rates begin to fall for these 2 and would one be more resilient in this scenario? Thanx.

Q: Hi,

My partner I are doing financial planning, we will need a relatively significant (to us) amount of cash in the next 2-5 years for replacing aging cars and a down payment on a larger house.

I am always hesitant to hold cash/GICs for fear of missing out on growth opportunities. Currently, almost all the funds in our RRSPs and TFSA's are invested EXCEPT a long term GIC that came to term and is now sitting in cash (some in TFSA, some in Non-registered). We will need all this cash in the next 2-5 years.

I am looking for ideas on how to manage the cash.

Right now, the best option I can see is GICs with various terms, do you have any other suggestions or ideas to consider?

(we have already owned a house, so cannot use RRSP loan or the new FHSA)

Thanks

Q: What will likely happen to PSA and CASH as interest rates drop?

Q: Good morning, I’m looking to park some cash, both CAD and USD in a savings account ETF. What are your favorite, high yielding, ETF options? Thanks

Q: Do you have a couple of recommendations for safe ETFs that would be alternatives to money market mutual funds for Canadian funds? Thanks

Q: I understand this is a new ETF issued by TD Asset Management. There is a little information on its website. I am interested in it as a short term cash management option. I could not determine the yield. If you look at the current holdings, it states over 90% is invested in other than Canada. In its top 10 it holds a number of Trusts and when you look into these they represent a range of money market investment options including car loans, credit card debt, etc. Though it states the risk is low, its holdings would seem to suggest otherwise. Firstly, can you compare TCSH yield with that of GICs or HISAs. Further, do you have an opinion of this ETF as a place to park money. If you prefer other like ETFs would you also state how you would rank them. Thank you.

Q: I am retired and looking to park some cash. TCSH and MCAD appears to be another type of ETF being offered around fixed income. These ETFs along with ETFs like PSA and CASH seem to be a good place to park some cash for a while. What would your opinion be on the safety of either type of ETF and any advantages or disadvantages of either class of ETF?


Ken

Q: HI,

What is a good time to sell these units/ETFs? To lock in the distribution of that month's interest? I am looking at taking some cash off these and be ready to deploy the capital. Not in a rush. But want to be prepared.

Q: I am looking to park some cash for a while but have it relatively easily accessible. I understand that these ETF’s are not CDIC insurable but other than that what is the downside/risk of these ETFs and which one would you consider the best? Also I noticed that these etf’s are trading above their set value…$50.14. Under what circumstances would they trade back to their $50.00 value?

Q: What would you recommend a young couple hold in an FHSA to get some growth better than an ISA? Looking at a potentially short hold of under 1 year.

Q: Hello, the distribution paid by these ETFs is starting to come down, even before the new rules becoming effective Jan 31th. Distributions will also follow the BoC rate when it starts going down as well. What would happen if shareholders start selling PSA, CSAV or CASH en masse? Is there some sort of marketmaker for these ETFs that, no matter what, will keep the share price close to NAV? Thanks.

Q: I have about $250k that I am looking to park for up to a year not in equities, what are some low risk options? And as a side note can you clear up what a 'money market' account is and invests in typically?

Q: Morning 5i;
If you have for an example $50K in a PSA or HISA account and you have that same amount on the 30th of the month ie x-dividend date you will get the full amount of the interest payment the next month a few days later . My question is if you had of taken out say $5k after the first two weeks of the month say the 15th , do you receive any interest payment on that $5k for the first 15 days that it was in the account OR do you only receive an interest payment based on whats in the account on the 3oth ?
Thanks
Bill C

Q: Happy Holidays,
I have a question about tax efficiency on HISA ETF investments in non-registered accounts. Do the dividends received from these ETFs qualify for any dividends tax credits? Or are they being treated as interest income, such as GIC, which will be subject to the usual marginal tax rates?

Thank you,

Q: My daughter has opened her First time Home buyer Savings Account with the intent to wait 1 ½ to 2 years until she will be ready to purchase her first home. Do you have any ETF's you would like to suggest ?

Q: Between the high interest savings account ETF’s CSAV, PSA and HISA, would you have any preference for one over the others for an RESP where the kids are in and soon to be entering university? Thanks and Merry Christmas!