Investment Q&A

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?

Q: Hi 5iTeam, In your answer to my previous question regarding XSB and XLB, you mentioned there are cash proxies that are less volatile than XSB. Would you please name these cash proxies.
Cheers,

Q: I have a larger amount of cash in PSA and CSAV. Is this safe or is it safter at this time in cash, with the return so low?
Thanks for your reply.

Q: TD claims I cannot hold PSA in my SDRIF. Is this correct? Could you suggest an alternative? Thanks.

Q: Can you recommend a money market fund to park some cash for about a year?

Q: FYI: TD Waterhouse - This is what I get when I try to buy PSA or CSAV:

This order cannot be placed electronically. Please contact TD Direct Investing ... to place this order. [ 90211 ]
This symbol is not eligible for trading online. For assistance, please call TD Direct Investing. [ 44221 ]

Gotcha!

Q: Any recommendation on where to park cash short-term within a direct investing account? I like the sounds of PSA, but 'for business reasons' TD Waterhouse does not allow TD Direct Investing Clients to purchase PSA. Instead, they offer their own savings account which only pays 1.60% in comparison to the 2.15% paid by PSA. Any suggestions?

Q: When I read/hear the phrase "GIC-like funds" what is being referred to? Can you provide a few examples if that phrase has meaning in the realm of investing?

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: 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: 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: 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: 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.