Investment Q&A

Q: Hi 5i,
I have a bit of a tax-treatment question for ETFs like PSA held in taxable accounts. Assuming one is in the top tax bracket, should they not look to make monthly sales right before ex dividend so that the 'growth' in share price gets taxed as a capital gain vs. having the distribution pushed out as income? Am I thinking about this correctly? The total tax owing would roughly be cut in half. Assume trades are zero commission for simplicity :)

Q: Some time ago, you published a very good statement about when HSAV is undervalued and overvalued based on NAV. Where can I find it or can you give me another answer here. Thanks

Q: Hello and appreciate all your insight. I have raised a fair amount of cash in my portfolio and was wondering what would be a safe way to invest it but still have immediate access to it if needed. I would like to have access to it for opportunities that arise but at the same time would like to earn something on it with very minimal risk in the current environment. Thoughts?

Thank you

Q: Hi,
I'd like to get a better return on the Cash sitting in the Canadian Account. I don't want to lock it into GICs now as I would like the flexibility to use it until I get a better sense of where we're going with all of this. I looked at CASH.TO Global X High Interest Savings ETF and HSAV.TO Global X Cash Maximizer Corporate class ETF. Mgmt fees and MERs are lower on CASH and the yield is a bit higher but it has tax implications whereas HSAV has slightly better performance and deferred tax. Once our taxes are filed there may be a bit more contribution room left in the TFSAs but it won't be much.

Any opinions? Any thoughts on what I can do with the US Cash?

Thanks!
D

Q: I need to hold cash for 1 yr (HSAV is interesting but it needs to avoid a significant premium vs NAV + yield is quite modest...) .Could you suggest 3 stocks + 3 ETFs with dividends and with a very favorable entry price at the present time,that would meet this objective and would offer "acceptable stability" in this volatile world politico- economic environment ? Hoping that this is not an "impossible question " to answer !

Q: what is your opinion on TSCH-TD Cash Management ETF? Are there other options I should consider? I am considering putting some of my cash into this ETF- this cash is not required for at least 18 months so I would like to optimize returns. Thanks.

Q: In the current environment, of the above etfs, in a taxable account, where would you cash for a 1 year hold for 1) low risk; 2) moderate risk ? Is there another vehicle you like better ? Thank you.

Q: The price of HSAV is the same as 2.5 months ago and the premium shrunk to 0.14%, which seem to be extremely low considering the tax advantage of HSAV. Is it because there are a lot of sellers and nobody wants to keep money in cash these days? Does it have something to do with the CDN$? Or there are other reasons for such a poor performance of this fund lately?

Q: Can you suggest 3 mechanisms to "park" cash with safe steady income and good tax efficiency?

Q: I’m looking for safer areas to park money in each of our tsfa’s ,rrsp’s and non registered accounts. Can you suggest a few of your favourites for each. We are semi retired and won’t need the funds for at least 10-20 yrs but would like a little more protection in a downturn.Currently 80 equities ,20% cash (CBIL and BIL )and no bonds. If there are safe bond ETFs that you prefer in certain accounts please recommend them as well. Take as many credits as needed. Thanks!

Q: In a response to Bruce this morning regarding HSAV you state: "Note it is not 'guaranteed' in the typical sense." I had thought that holding HSAV was as safe as holding cash. As a holder of HSAV I would appreciate it if you could expand on the risks of holding HSAV. Thank you.

Q: I have $500,000 from sale of house that I need to park until January when I can contribute it back to my TFSA. Given the recent strong markets and the fact we are going I to seasonally weak months I don’t want to be exposed to market risk. Once back in my TFSA I will put the money to work in the markets.
I was thinking of using HSAV as the returns are by way of unit price appreciation which would be taxed more favourably than interest paid out in CASH or PSA. The unit price growth in HSAV is somewhat erratic which is a bit concerning.
Your thoughts or other suggestions.

Q: I currently have 25% of my unregistered investment portfolio in PSA and HSAV. While the rest of my portfolio is well-diversified, I've noticed that the returns / interest from PSA and HSAV, (after accounting for taxes,) aren't keeping pace with inflation. I'm looking for strategies or alternative investment ideas to address this and improve my portfolio's ability to beat inflation.
The money in these funds are not needed in the foreseeable future but serves as sleep at night factor.
(TSFA's and RRSP's are fully funded)
Any ETF ideas would be much appreciated

Q: Where would you recommend that cash or near cash be held in a registered acct. in order to get best net return for next 6 months? Also, for an extra credit, please compare CASH:TSX to:

TDB8150
ISA-TDB@2.30% PA /NL'FRAC

Thank you.

Q: Several weeks ago one of your members said they were seeking the safety and yield of CASH:CA and another name I can't remember or find again. This to ride out the market turmoil. I remember both names as being stable and having a decent dividend. Can you suggest the forgotten name or other names that are similiar and offer similiar features?

Q: I asked this question on June 1, 2025 but did not get an answer so I am asking again.

What is the difference in underlining risks between ZST and high interest saving ETFs like CASH and HSAV?
What is the difference in yield between them?
I have about $100k in cash to park for 1 year ish so I am looking for a bit of yield during this time.

Q: I’m thinking of switching my cash from CASH and HSAV to ZST. The reason is ZST now has a higher yield than CASH and HSAV (3%+ versus 2.6-2.7%)The intended duration is about 1 year.
What are the risks associated with ZST? Is ZST riskier than CASH and HSAV?

Q: Is TDB8160 as good as these others? What is the advantage or disadvantage to the others, and is one more liquid/safer than the other? Thank you!

Q: I submit this question again since it did not seem to go through, sorry if is doubled .I intend to invest cash very progressively in 2025 ,since I consider as ''not totally impossible'' that (among other world factors ), the economic situation in Japan could lead to a sell-off of their US bonds , and have an impact on word economy and eventually on interest rates. On Yahoo finance website : YTD daily total return indicates : 0,97% for CASH,1,08% for PSA,and 0,77% for HSAV ! Does this means that lower NAVs counterbalance the yields after one year ? (but NAV looked relatively stable..).Once I can finally understand those numbers, I wish to choose the most efficient ETF in a non registered account if you could suggest one of the 3 ,considering all factors , as capital gain fiscal advantage of HSAV, VS total Yields and NAVs tendencies. Many thanks for your always very useful clarifications

Q: If a bond crisis were coming in Canada ,with increased interest rates( including Moody's lowering CDA rating ),increased debt and deficits for instance , would ETFs similar to HSAV or CASH also be at risk ( as longer term bonds) and in such case,woùd you have better ETF suggestions for short term investments ?