Q: What would be your choice between :
DJQ1100-C (DESJ CP EP PL-F/SF/N'FRAC) offered by Desjardins or CASH offered by Purpose investment?
Thank you.
DJQ1100-C (DESJ CP EP PL-F/SF/N'FRAC) offered by Desjardins or CASH offered by Purpose investment?
Thank you.
5i Research Answer:
The CASH ETF is through Global X, and it has a 4.7% distribution yield, with no lock-up and a good level of liquidity. It has an MER of 0.11%. Purpose also has a high-interest savings ETF, PSA.
The Desjardins DJQ1100-C savings accounts has the advantage of being CDIC protected, but there is a minimum investment of $1,000, whereas this is not the case with CASH. There are not transaction or service fees, which is a bonus above CASH, but the rates are slightly below the CASH ETF, which likely offsets not having an expense fee.
Overall, while CASH is not CDIC protected, we would prefer the flexibility and transparency of CASH vs. DJQ1100-C. Although, for investors that prefer the CDIC protection, the Desjardins product looks decent.