Q: Hi Peter, my question is in regard to HSAV. What do you think of the current premium to NAV. Can you comment on when you think it is too much. Also with rates coming down do you expect to see the yield come down also.
5i Research Answer:
Premium today is 0.29%. Considering the possible tax advantages of the ETF to higher-tax-rate investors, we would not be concerned with this much at all. Above 0.55% then the premium starts eating into returns, especially if rates continue to head lower. Total return will likely decline with rates ('yield' is 0% due to the structure).