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  5. UCSH.U: I have owned an HISA ETF for a couple of months now - in this case UCSH. [Global X USD High Interest Savings ETF]
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Q: I have owned an HISA ETF for a couple of months now - in this case UCSH.U. I had assumed these ETF types to be quite safe but am surprisingly already down 0.21% in a very short period of time. What are the dynamics that make this ETF go up or down in value over time ?
Asked by James on December 06, 2024
5i Research Answer:

The 52-week trading range on UCSH.U is just 24 cents: $50.00 to $50.24. But if buying on the market there will be a bid ask spread. Buying at the high and selling at the low of the year would be a 0.48% loss. More than likely, though, the decline being referenced is the fact that most brokers set the 'bid' price as the valuation in accounts. So as of yesterday this would have been $50.04. A trade today could very well be above the bid price, depending on demand. Market makers can also create/cancel units depending on demand/supply of investors. Units may also fall when the fund goes ex-distribution. For example on Nov 29 it went ex of 18 cents and units fell 0.36% that day. Finally, if the units are held in a Canadian dollar account and not a US dollar account, the valuation will also reflect daily currency movements. Yesterday for example the C$ was strong and investors holding this fund in a Canadian account would see a small decline in value because of this.