Q: Hi there,
I'm evaluating the fixed income portion of my portfolio and am debating between a ladder GIC vs a HISA ETF. I understand GICs are locked in rates and HISA etfs are floating, but can you provide any insight as to the general historical differences in performance over historical time? In other words, say 100k split into 5 rungs of 20k vs 100k in a floating rate HISA etf - is there any difference in performance historically?
Thank you!
I'm evaluating the fixed income portion of my portfolio and am debating between a ladder GIC vs a HISA ETF. I understand GICs are locked in rates and HISA etfs are floating, but can you provide any insight as to the general historical differences in performance over historical time? In other words, say 100k split into 5 rungs of 20k vs 100k in a floating rate HISA etf - is there any difference in performance historically?
Thank you!
Q: Just a comment with regard to RoC paid by ETFs...if there is a large inflow of new funds between the payment declaration day and the date of record that can result in RoC. For example, an ETF such as PSA declares a 9 cent interest payment with the date of record 2 weeks in the future. If the 9 cents is 100% of the interest earned but a large inflow occurs before the record date, the ETF would likely have to pay out the extra interest as RoC. I imagine this can be minimized by holding back some of the interest earned in case that happens.
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Purpose High Interest Savings Fund (PSA)
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Global X Cash Maximizer Corporate Class ETF (HSAV)
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High Interest Savings Account ETF (HISA)
Q: Hi,
I was surprised to learn yesterday that a T3 form was provided to me from by bank for holding Purpose High Interest Savings Fund (PSA). It says there is a minuscule return of capital. I thought PSA would only provide interest as reported on a T5.
I went to the PSA website and sure enough, there is a ROC and has been since 2013. Do you know if this is typical of these high interest savings account ETFs and if there is another fund that is similar to PSA without the ROC component?
Thank you.
Michael
I was surprised to learn yesterday that a T3 form was provided to me from by bank for holding Purpose High Interest Savings Fund (PSA). It says there is a minuscule return of capital. I thought PSA would only provide interest as reported on a T5.
I went to the PSA website and sure enough, there is a ROC and has been since 2013. Do you know if this is typical of these high interest savings account ETFs and if there is another fund that is similar to PSA without the ROC component?
Thank you.
Michael