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iShares Core Canadian Universe Bond Index ETF (XBB)
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Global X Cash Maximizer Corporate Class ETF (HSAV)
Q: Greetings,
I have put some cash into HSAV but feel there is not much return coming. As being very conservative is there a better place for better returns to pack some cash?
Thank you,
John
I have put some cash into HSAV but feel there is not much return coming. As being very conservative is there a better place for better returns to pack some cash?
Thank you,
John
5i Research Answer:
HSAV does not pay distributions, but its 3-year annualized return is 3.67%. But as interest rates come down we certainly would not expect huge returns here as it invests in high interest savings deposits. Some ETFs such as PSA (indicated yield 4.34%) may pay out more, but these too will see lower returns as rates come down. GICs today will offer the highest returns and the most safety. Canada T-bills are another very safe option for cash, but those two will see declining rates. We can't offer much here unless one moves to something equity or bond-based. A bond fund such as XBB can do well when rates fall, but prices fluctuate and therefore we would not see it as a cash equivalent.