Investment Q&A

Q: Hello. Which one of these is a better place to stash cash in my Questrade account? PSA or CSAV. Is money in these protected by CDIC or something else. Is there anything better you would recommend? Thanks

Q: I'm holding cash and gradully adding to it with dividends in case there's a market correction. What's the best place to hold these funds that are secure yet get some interest while waiting?

Q: Hi 5i,
I will be needing to spend around 50-100k from my portfolio in 6 months to one year time frame. Can you give me some safe alternatives to park this money now so it is all there when needed and still makes a return until then?
Thanks
John

Q: What is your opinion on newer ETFs that are basically high interest savings account? I'm referring specifically to Purpose High Savings Interest ETF and CI First Asset High Interest Savings ETF. Is there any risk here or do they pay such low interest rates that just holding cash or a cashable GIC would be preferable? Thanks.

Q: I presume distributions are taxed as income from these funds. Are there any other tax items with these ETF's, such as Return Of Capital?

Q: 11:06 AM 10/19/2019

I am trying to compare PSA to TDB8150

My problem is I have already $100K in TDB8150 in my Cash acct and would like to put additional cash funds somewhere, ideally with CDIC protection. I have no more room in TFSA and RRIF accounts. So I am wondering if it is ok to just exceed the $100K amount in TDB8150 since PSA is not CDIC insured anyway. I am not interested in GICs or T-bills as these are not really liquid. Do you have any suggestions? The difference between TDB8150's 1.6% and PSA's 2.14% [or 1.74%?] seems trivial at this time when safety of principal is paramount.

I am very confused about PSA because Yahoo! gives the following data on PSA;
Net Assets 2.1B
Yield 2.16%
YTD Daily Total Return 1.74%
Beta (3Y Monthly) 0.00
Expense Ratio (net) 0.15%
Inception Date 2013-10-15

Does the yield vary from 2.16% ? I see on Aug 06 19 you said PSA has a "2.37% indicated yield", not the 2.16% mentioned in Yahoo. Why does Yahoo indicate a YTD Daily Total Return of "only" 1.74%. What yield do I actually get?

The price of PSA starts each month at $50.00 and rises in 9 or 10 steps a cent at a time during the month to end the month at $50.09 or $50.10 then drops back to $50.00 at the start of the next month. Are the earnings [interest] accumulated during the month and only paid out at month end? Is the payment in cash to one's brokerage account or are more units issued or the cash reinvested?

Thank you.......... Paul K

Q: Comment on PSA and greedy bankers!
I have more than one brokerage account and transferred my cash in my canadian account from TD to Scotia itrade which allow the trade. considering doing same with US cash account. TD mutual fund savings pays 1.6 compared to 2.16 for PSA.

Q: In the fund facts for PSA under risk it says:

"The value of the ETF can go down as well as up. You
can lose money."

How would one loose money with this product? I assumed it was basically like a savings account. Similar to TDB8150.

Thanks

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.