Investment Q&A

Q: Can you clarify the tax advantage of HSAV over PSA for non-registered accounts.

Q: I have a BMO High Interest savings ETF. The distributions are reinvested in the ETF. Will the interest be reported annually by BMO? And so, no capital gain will occur when the ETF is sold? Thanks.

Q: So now that Horizons has suspended new issues of this ETF, the unit price dropped by about $1.50. will the price continue to drop until it reaches net asset value. In this case at what price should one target to buy this ETF. Do you expect the price to continue to decline in the short term. What would be your advise? Wait or buy now?

Q: In a follow-up to my question earlier, if I understand correctly the fund should go down another 1 1/5% as per your answer:
''HSAV has suspended new units, so investors can only buy in the market. Thus, it has traded at a premium to its asset value, and the premium is slowly decaying towards true asset value. The units are about $1.50 above asset value currently. But it can still move higher with any big buy orders coming in.'' unless a white knight comes in to buy a large order...

What happens with the yield that the fund collect with the high yield savings account it's invested in? Does time invested in the fund add value? In other words how is one supposed to make money or even hold on to one's money beeing invested in that fund? In your January 9th answer to a question asking for stability and income you put HSAV at the top of the list.
Frutrated investor...
Stll thankfull for your service.
Yves

Q: Can you explain why a money market fund like HSAV have ups and downs? This fund has gone down 2 days in a row from March first.

Q: Can you help me understand why the discount to NAV for HSAV has grown substantially since the beginning of the year (from 0.5% to ~2.3%)?

Q: I deal with CIBC Investors Edge and was wondering if there is a good ETF for buying GICs for my registered account. GIC are paying 6%, I believe? maybe some other instrument?

Q: Are there any other ETFs in Canada that are structured in the same way as this where one gets no cash distribution at all but pays a capital gains tax only when sold. Thanks

Q: Can you please recommend your favourite yield products for stability and income?

Q: Good Day Team,

Is this a good time to go into cash and if so do you favor any of these listed?

Thank you,
John G.

Q: Strategy Question

If I had 200 - 300 000 in savings meant for a home purchase down payment in the next 1-3 years. I would be in the highest tax bracket. Besides GIC's what do you suggest parking this money in, what are safe and tax efficient alternatives.

Q: Further to your reply to Gord on November 02, 2022, please explain why I should not simply select the ETF with the best historical "total return" if no tax implications (RSP or TFSA). My Koyfin Watchlist tells me that HSAV offered 0.32% more than the next best ETF over the past year (HSAV 2.40%; CASH 2.08%; PSA 2.02%; CSAV 2.01%). Are there liquidity issues with any of these ETFs? Or will their values move in different directions in rising rate or decreasing rate environments? I'm just trying to understand the different offerings, and unlike historical equity returns, can I just select the ETF that is offering the best historical total return - Thank you.

Q: Looking to park some US cash and some Cdn cash with a reasonable assurance of safety (CDIC aside) while avoiding interest income in favour of capital appreciation via Horizons corporate class structure using these 2 ETFs. Do you see these as a reasonable means of achieving the goal? Both ETFs have substantial amounts invested and seem to use a similar approach to generating returns yet HSAV has more erratic up and down performance. Why? Any cautions or concerns? Whatcha think - does this plan make sense? Thanks as always for your generous thoughts.

Q: With regard to your answer to Francisco earlier, high-interest savings ETFs are also available at National Bank Direct Brokerage.

Q: thanks for the info about CASH and HSAV.......looking at the price charts for both and both are rising up to the upper left......and this makes wonder - when interest rates start to fall, will the stock prices fall for both???
also if that is the case for one or both, what are the signs that I should watch more in order to sell out???...........many thanks for the guidance.......tom

Q: I have cash in my US$ RRSP and would like to park it in a ETF like HSAV but I don't want to be clipped by TD if I move the cash to my CDN$ RRSP account. I noticed HYGH.US in your ETF model portfolio but it is not like HSAV. Any suggestions would be greatly welcome or if HYGH is the best then please advise. Thanks again.

Q: I hope to retire in about a year. I'll have a comfortable defined benefit, I've used the portfolio analysis to diversify my investments. I have a sizeable cash amount earning nearly nothing at a bank. I have contemplated GIC's but don't like the idea of having my funds locked up in the event I would like to direct it to a project or investment .
Would there be a ETF /bond that would be relatively safe that would mirror the GIC returns?

Q: To park your money short term without risk, do you advocate HSAV? What's about NSAV and HISA on the NE? As far as you know, does a similar product exist in US funds?

thanks

Q: i will have some new cash available from sale of industrial property and i am fully retired at 66 years of age . My wife owns another industrial property from which she draws a monthly income.
We currently have investorline account with each of our rrsp, tfsa, and a joint account.
I here a lot of noise out there in investment world regarding bond etfs being a poor investment at this time, as well as covered call etfs not being a good investment due to limiting upside potentialComments on this please.
But what is your opinion as to what etfs we should invest our new cash: considering Maw 104, VCNS , ZWH, VCIP, RWVG. also High interest savings accounts HSAV?
Thank you!

Q: A couple questions on ZST. Deduct credits as needed.

Assuming this etf is held in a taxable account but the payout is taken in cash and not reinvested, will it make for a headache at tax time?Would HSAV be a better place to park cash in a taxable account?

It looks like every time this etf pays a distribution the price drops so even though the current yield is 2.17%, in reality you're only getting ~.5% return. Do I have this correct?

Thanks