Investment Q&A

Q: In a non registered account,there is no tax on hsav monthly interest neither on hewb monthly dividend.When those ETF are sold though,do one has to pay tax on the total of interest accumulated in the ETF or on total dividends accumulated (+capital gains)since the acquisition,or tax shall be only due on capital gains ?

Q: What is the present yield and MER of the above funds?

Q: I need to sell 1/3 of my portfolio and park the cash for 3-6 months. TD will not allow me to buy PSA, CASH, HISA, or HSAV. Can you recommend a few other good options.
Thank you,
Derek

Q: Dear 5i
Do most or all high interest savings accounts pay distributions monthly or quarterly ? How would you rate the above ones that i've listed ? Do you have to be a little cognizant of when you buy them as i see the price can fluctuate slightly throughout the day ? Are you best to buy the one with the highest % distribution or a combination of % distribution and the smallest 52 week high /low spread ?
Take as many points as necessary as i have multiple questions and lots of points .
Thanks
Bill C

Q: I have money invested in non-registered accounts which I will need in 1-3 years for a downpayment on a house.

Am I correct that money needed in a 1-3 year time frame should not be invested in the markets ?

If so, what should be done with this money ? Any "money" ETF s to consider ? Thank you !

Q: I have about 80,000. in cash that I would like to collect interest on for a while. Can you suggest some options for this.
Thank You
Peter

Q: If we had $75K in an unregistered account, would it be accurate to say that purchasing an ETF like HSAV would be better than putting this money in a GIC or high interest savings account, due to the fact that there are no distributions and thus, only 50% of any income are taxable?

In other words, if I am deciding between a 6% GIC, or HSAV (which I believe has a similar yield), I would pick HSAV correct?

Are there similar ETFs like HSAV that have similar characteristics (ie do not pay out dividends) that you would prefer over HSAV?

Q: The four referenced cash accounts pay roughly the same rate of return. Which of these are best in terms of risk and liquidity. What would you recommend for cash portions of the portfolio and which etf if any would you avoid. Thanks

Q: For an income component, would you lean to a bond holding like PFIA at this point or more to a high interest account like HSAV?

Thanks

Q: Now that I discovered that RBC has opened its direct investing accounts to high interest saving ETFs, I am interested in moving the cash portion of my portfolio. HSAV is interesting because of the capital gains tax advantage. However I noticed that it has been fairly volatile in the last few weeks - swinging by almost 1% in a single day. That is more volatility than I would’ve expected from an investment that primarily holds bank savings accounts that reprice daily. Is there something else going on here?

Q: Hi there,

With so many low risk, high yielding ETFs now that are producing better rates than savings accounts, which would be the best to hold in a non registered account, and why?

Thanks!

Q: I'm looking to park some cash and let it earn some interest. My bank doesn't offer any meaningful savings interest rate and I'm not interested in a GIC. Can you please recommend a couple of money market funds or ETFs I could buy through my non-registered iTrade account.

Q: Hi there, could you please name your favourite high-interest savings account etf for a non-registered account, with a short description of why?

What is your favourite for a registered account and why?

Thanks!

Q: For the High interest savings etf's listed, which has the best net yield (or if another has a better yield that is not listed please let me know)?
With the HSAV product not paying a distribution, how do you find its yield? (In an answer to a previous question recently, it had the highest gross yield at that time of 5.25%)

And lastly, for funds held within a corporation, what would be the best tax advantaged way to go (pay tax on the dividend or the capital gain on HSAV)?

Thanks very much,

Q: For tax reasons, I want to buy some ETFs or stocks in my unregistered account, that pay little or no dividends. Which of the Horizon's total return ETFs would you recommend at this time? HSAV seems to be really unstable and I am concerned it could be a money loser in the short term. I read in the G & M that the manager of Langsford Wealth Counsel in Oakville has been buying HXDM with better valuation than the US. Thanks!

Q: Hello! For large sums of money that need to be held in cash which is the best and safest option and what is the difference in yield one receives in these different investments? Is money held in these kinds of investments CDIC insured up to $100,000 or is that only if one holds in a GIC? Thank you!

Q: I wish to find a place for some cash. I am not entirely clear on some details for HSAV: the current trading price is around $106,60.

Of course, there are no distributions; What do you calculate the effective yield to currently be?

My trading platform suggests NAV is $106.30, so there is a premium being paid at the current price. What effect will that have on the yield? And what effect when I come to liquidate the holdings?

Last, if you see HSAV a not that good a place to deposit, what other place(s) would be good to hold some cash? BMO HISA is currently offering 4.6%

Many thanks

Q: Hello Team,

What are your favourite etfs for high interest savings account for both CAD and USD?

Thank you!

Q: I was considering investing 300k into 2 or 3 of these picks below for almost guaranteed savings. This would be in a non registered holding company.

1. Horizons Cash Maximizer- HSAV (which you have pointed out is more tax efficient since they don't pay distributions and yield gains are building into escalating price, etc)

2. Horizons High Interest Savings-CASH which is straight up high taxation interest gains

3. Purpose High Interest Savings- PSA which is straight up high taxation interest gains.

Please advise if you have a preference for perhaps two picks at 150K, or all three at 100k for example.

Alternatively, if there is another TSX traded option that you suggest, i would look at that too. To be purchased via CIBC Investors Edge.

Thank you.

Q: I own TDB8150...I use it to park cash within my TD Webbroker accounts...currently pays 4.05%...that rate didnt move higher with latest interest rate hike...believe it didnt move higher on last rate hike either...I go onto TD's website to see mgmt fee but am unable to find details on it...are you able to tell me what the current mgmt fee TD is charging for this investment...please and thank you...and also any suggestions as an alternative place to park cash...take as many credits as you need...and thanks for your insight...Cheers