Investment Q&A

Q: I have a BMO High Interest savings ETF. The distributions are reinvested in the ETF. Will the interest be reported annually by BMO? And so, no capital gain will occur when the ETF is sold? Thanks.

Q: It looks like we could be heading for a market correction, where are a few good safe place to park cash for up to 6 months..

Q: I deal with CIBC Investors Edge and was wondering if there is a good ETF for buying GICs for my registered account. GIC are paying 6%, I believe? maybe some other instrument?

Q: Good morning

Having slowly raised my cash position recently and still not ready to jump back in as I believe the market will go lower later this year. Could you list a few places to park these funds ranking from best return/conviction

Q: With the assumption being the market will face a downturn later this year.

What are your three best choices to park some cash today for someone using a bank trading platform like itrade.

The goal being to earn the best return but still have easy access to the cash to buy later in the year or into next year.

Q: I have an RESP for my nephew who is in grade 12 now and attending a college in the fall. His parents are not great savers, and I don't have children, so I'm fine to subsidize his education. I currently hold only CDZ and TD in the RESP and would like to add some additional cash soon.

What's your advice on how to proceed? Do I add to one or both, or would I be better to invest in CASH or PSA.

Thanks,
Robert

Q: Where did you get the yield on these ETFs being 4.6% and 4.8%? My TD webbroker shows yields of 2.29% and 2.26% respectively

Q: Hello,

What is the difference between PSA and CASH?

Also, I own ZCS and CBO and was wondering if I should increase my allocation to CASH and PSA while reducing my allocation to ZCS and CBO considering the higher rate (better yield) on the short end of the curve. It seems to be higher income / lower risk strategy. Can you please provide your comments. Thank you.

Q: I have some cash that I was thinking of putting into PSA or CASH for the shorter term. But I am wondering if the unit price of those may drop suddenly when the market turns bullish, and investors move back into stocks. So, well I may earn a nice yield, I could lose some capital. Is that something I should worry about? Thanks.

Q: Hi
What is the advantage of holding an ETF like CASH or PSA Instead of a money market fund such as TDB8150?
The latter appears to pay a much higher interest rate (3.8%).
Thank you.

Q: I have a bit of cash on the sidelines that I'd like to deploy in a money market fund/cash proxy etf product to earn a bit of interest on. Do you have any suggested ETFs for this purpose in this market?

Q: I’m looking to put a fairly large cash position to work (my portfolio is 30% cash) over the short term and would like to atleast gain some income (while I wait for a short-term recession scenario to play out) but limit large equity exposure. Can you give some short term bond etfs or some liquid traded products that would serve that purpose. I own a large position in zwb already but realize I’ll still get dinged in a pull back (at which point I’d shift that position back into underlying bank equities for a recovery). And also what kind of yields would I be looking at? I also would like to be paid out atleast monthly. Thanks

Q: Can you please recommend your favourite yield products for stability and income?

Q: Good Day Team,

Is this a good time to go into cash and if so do you favor any of these listed?

Thank you,
John G.

Q: Strategy Question

If I had 200 - 300 000 in savings meant for a home purchase down payment in the next 1-3 years. I would be in the highest tax bracket. Besides GIC's what do you suggest parking this money in, what are safe and tax efficient alternatives.

Q: Good morning 5i,

I have a question regarding the PSA ETF. There will be a change in January in the nature of the ETF, for me who owns a significant amount in PSA, will this change anything in regards to its safety or any other drawbacks (or benefits). I would appreciate your informed opinion.

Posted by Purpose Investments on Nov 22nd, 2022 —
Purpose Investments Announces Fund Merger of Purpose Money Market Fund into Purpose High Interest Savings ETF and Name Change of Purpose High Interest Savings ETF

Purpose Investments Inc. (“Purpose”) today announced its proposal to merge Purpose Money Market Fund (“PMT”) into Purpose High Interest Savings ETF (to be renamed Purpose High Interest Savings Fund) (“PSA”) (the “Merger”) on or about January 27, 2023 (the “Effective Date”). These funds are designed to provide investors with monthly income while preserving capital and liquidity by investing in high interest deposit accounts. The Merger is being implemented in order to more effectively and efficiently manage the fund portfolios as well as to reduce costs for the benefit of unitholders.

The Merger will be implemented on a tax-deferred basis. Following the Merger, PSA will continue to provide an opportunity for preservation of capital and liquidity and monthly distributions.

As a result of the Merger, holders of Class A units and Class F units of the Fund will become holders of Class A units and Class F units, respectively, of PSA on the Effective Date. The change of name of PSA to Purpose High Interest Savings Fund is expected to be effective on or about January 13, 2023.

Thanks

Q: I am considering purchasing a high interest savings etf at wealthtrade
1. Is it covered by CDIC?
2. Does it have an ex dividend date like stocks?
3. If I purchase it before this date, will I get the interest?
4. The price always goes up on the 28th. Does it make sense to wait to purchase it?
Thanks

Q: Further to your reply to Gord on November 02, 2022, please explain why I should not simply select the ETF with the best historical "total return" if no tax implications (RSP or TFSA). My Koyfin Watchlist tells me that HSAV offered 0.32% more than the next best ETF over the past year (HSAV 2.40%; CASH 2.08%; PSA 2.02%; CSAV 2.01%). Are there liquidity issues with any of these ETFs? Or will their values move in different directions in rising rate or decreasing rate environments? I'm just trying to understand the different offerings, and unlike historical equity returns, can I just select the ETF that is offering the best historical total return - Thank you.

Q: I hope to retire in about a year. I'll have a comfortable defined benefit, I've used the portfolio analysis to diversify my investments. I have a sizeable cash amount earning nearly nothing at a bank. I have contemplated GIC's but don't like the idea of having my funds locked up in the event I would like to direct it to a project or investment .
Would there be a ETF /bond that would be relatively safe that would mirror the GIC returns?

Q: Are shares in the ETF insured?