Investment Q&A

Q: Back in July, David was asking about CSAV to park emergency fund money in and you seemed to like PSA more because of the liquidity of a larger fund.

It looks like CSAV now has around $300M in assets. Is that large enough to remove any concerns about liquidity? CSAV has a slightly lower MER but their monthly payout seems to fluctuate more so I'm not sure which to choose for emergency funds.

Thanks

Q: It is my understanding that ZST.L does not pay out any interest or dividends but rather reinvests them. If that is the case, when one eventually sells their holdings would the gain in share price be treated as a capital gain instead of interest or dividends?
Looking at both PSA and ZST.L, apart from the face one pays out regularly and the other does not, does one stand out as a better place to park some cash to you?

Q: To park my cash, I have been using the TD Investment Savings account TDB8150 (CDN) paying 1.6% and TDB8152 (US) paying 1.45%. I just saw your answer about PSA and PSU High Interest Savings ETFs that pay in the range of 2.25%....I assume these returns are net of fees?. On the surface, it seems a no brainer that I should move into PSA and PSU, however, I wanted to check to see if there was any downside (increased risk, lower liquidity, etc) that I should be considering. Thanks

Q: Where would you put the money portion of your US and Canadian portfolio now?Thanks

Q: Hi Team,
99.3% of PSA's holdings are in cash. Is it then reasonable to assume that the maximum downside to this etf is 0.7%.
Cheers,

Q: I would appreciate your opinion on this etf and would it be a good safe place to put cash for holding for future deployment in a market downturn? Do you have any other suggestions that are equal to or better than?

Q: Thanks for all the help with my investing. I have valued your info on companies as the only one I truly believe. I would like your thoughts on this part of our RIF's. I rely on the dividends for 3/4 of my yearly cash flow and the principle for the rest. I do not want to be out of the market so I keep 2 years of cash in our RIF's but would like to put 3 years and put 2 years of that into PSA-T getting the interest of 2 plus %. This would take the sting out of getting nothing for the cash. My question is does this make good sense. Thanks Gary

Q: I am looking to put a large amount of cash in TD Webroker registered and non registered accounts, safely on the sidelines. Could you please tell me what your preference would be and why, including any other recommendation. Many thanks as always.

TDB8150 (savings account) Currently offering 1.6% yield. CIDC guaranteed.
TDB165 (premium money market funds, with initial minimum investment of $100,000 required) Currently offering 1.54% yield. CDIC guaranteed ?
PSA (high interest savings ETF). Currently offering 2.125 yield. Not CIDC guaranteed.

Q: I have about 1.5 million in stocks and another $500,000.00 in cash just sitting doing nothing. I am 86 years old and skittish about investing additional money in the stock market. My inclination is to invest the cash in PSA. Would appreciate your opinion. Thanks Bill

Q: Hi 5i,
I am looking for your advice on what to buy for a new TFSA (full $63,500 deposit) at this time. The funds in this account will be required in the next 3 to 5 years. Income and growth are the objectives, within the requirement to preserve capital. Would you allocate your recommendations equally or ? Thanks!

Q: I am looking to hold some cash for 6-12 months. My broker - RBC Direct Investing - does not allow me to purchase PSA or CSAV. Would you consider HFR to be reasonably safe, or do you have another suggestion? I am somewhat reluctant to change brokers, but maybe I should.

Q: 2:00 PM 7/14/2019
I expect to be parking a lot of cash in our 4 TDWaterhouse accounts... two RRIFs and two TFSAs
I want to be sure the money is covered by CDIC insurance
.--------------------------------------------
The CDIC site states :
Eligible deposits are insured separately in each of seven categories:
in one name
in more than one name
in a RRSP
in a RRIF
in a TFSA
in trust
for paying taxes on mortgaged properties
.-------------------------------------------
From the CDIC website :
We insure eligible deposits at each member institution up to a maximum of $100,000 (principal and interest combined) per depositor per insured category.
Eligible deposits include:
1. Savings accounts
2. Chequing accounts
3. Term deposits, (such as GICs) with original terms to maturity of five years or less

Uninsured financial products include:
1. mutual funds (including money market funds), stocks and bonds
2. term deposits, such as GICs, with original terms to maturity greater than five years;
3. foreign currency deposits (e.g., U.S. dollars);
-------------------------------------------
The question is just what specific securities are eligible.
Do the :
1. TD "savings" account TDB8150,
2. and the Purpose High Interest Savings ETF PSA.TO
3. and the Horizons Active Floating Rate Bond ETF Common HFR.TO
all qualify or are they considered to be "Mutual Funds"

So it looks as though just <5 yr GICs, and cash sitting uninvested in these accounts actually qualify

Can you please clarify this issue and tell me just what savings vehicles actually do qualify?
Thank you.

Q: Is there a US equivalent of PSA, i have US $ in my RRSP trading account and I am not ready to invest yet ?

Q: I have some cash set aside for an emergency fund (about 50k) currently sitting in a Tangerine account, earning only about 1%/year. I am considering moving this over to a high interest ETF such as CSAV. What is your opinion on this move? Opinion on CSAV or suggest some alternatives for both USD and CAD accounts. Thanks.

Q: I have a large amount of money that I am sitting on and would like to invest for a period of about 6 months. Would appreciate your suggestion as to where to invest it. Thanks, Bill

Q: I tried to buy 100 units of this on my TD Webroker Account for CAD$5,000 and change. Got an error message telling me to call a TD rep at an 800 number. The rep told me that I could not buy this through them. I have never run into this in the past for any stock or ETF that I wanted to buy or sell. What brokers take orders for PSA:CA and which brokers will not take these orders.

Q: Would be grateful if you could tell me in which of the above funds is it most beneficial for me to hold cash in a managed account - 1% fees?
What is the difference between the 3 - are there MER's. In which fund would a financial advisor hold his cash? Would appreciate any comments on this subject.

Q: Hello, I presently have a managed account with TD Wealth. Is there a no management fee account where cash can be held? What is the difference between PSA and CMR? Where would you want your cash to be held?

Q: With large deposit ($1M+), what is the WORST case scenario for this ETF?
Deciding between a 0.9% high interest account and this ETF.
Need funds within year.

Thanks!

Q: Hi Team,

I hold some of TD's high interest savings product (TDB8150 - 1.6% interest) for short term cash. You have also mentioned PSA.TO (1.86% interest) as a similar product.

Do you know if there is any substantive difference in these two products in terms or cost or risk or anything else?

Thank you.

Michael