Investment Q&A

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: On 5i website the yield for CASH:ca is indicated as 2.298% whereas the Horizons website indicates 4.78% gross yield. Could you please explain the discrepancy of ~2.5%.
Thank you

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: 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: Good Morning
In response to Gord's question on November 2, 2022 you indicated that the yield on CASH is 4.29%. My discount broker shows a dividend of $.84 yielding 1.67% and the closing price was $50.12.

Can you please clarify.
Thanks

Q: More of a general question/comment. I wonder if you've ever experienced this or have suggestions?

I tried to make a purchase today of CASH.TO, the Horizon High Interest Savings Account ETF with my BMO Investorline account and the trade was not allowed, with the notification that only sell transactions are allowed for that security.

When I called the help desk, I was told that their internal policy does not allow investors to purchase any high interest savings account ETFs. Of course, they would be more than happy to open a BMO savings account for me!!

I was able to purchase this security just fine via Scotia iTrade. I am completely at a loss to understand the rationale here, but thought I'd post the question here as to whether this is standard practice in the industry or is there some inherent risk to this security that I'm completely missing that would cause them to blacklist it?

Thanks,

Ryan

Q: thanks for the info about CASH and HSAV.......looking at the price charts for both and both are rising up to the upper left......and this makes wonder - when interest rates start to fall, will the stock prices fall for both???
also if that is the case for one or both, what are the signs that I should watch more in order to sell out???...........many thanks for the guidance.......tom

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: Can you recommend some fixed income products? Either directly purchasable bonds, GICs, or funds that look set to benefit from current rates and expected future hikes.

Q: How safe are these savings ETFs? If the company behind them, say Horizon, which I believe is owned by a Korean company Mirae Asset goes under what happens to your money?

Q: Howdy 5i,

My small business has a corporate investment account with funds sitting in cash that I'd like to invest for the next 1 to 3 years. GICs are not an option as I need liquidity if/when recession arrives. Do you have recommendations for relatively stable ETFs/SPDRs with high dividends?

Regards,
Garth