Investment Q&A

Q: Can you suggest CDN and US dollar etfs to own for interest instead of just holding cash in non-registered and registered (TFSA, RSP) accounts? Thank you

Q: Hello Peter & Company,

Can you please suggest a US Exchange based fund equivalent to PSU.U.

Thanks for all you do

gm

Q: Looking to invest additional US dollars into a high interest ETF. Currently invested in UCSH.U, but are there others ones I should be considering as better options.

Q: Good morning,
which ETF, available at the moment, is the most effective for keeping cash without monthly distribution but rather a capital gain on resale?

Q: Hello 5i Team

For the reader asking for US$ denominated money market funds at RBC Direct Investing - suggestions are:

RBF2014 a US$ investment savings account with Royal Bank of Canada ($100k CDIC insurance) - trades as a mutual fund but no commission. Interest rate is competitive (4.90 %)

Any of the TSX listed US cash etf listed - RBCD charges $9.95 per buy or sell - as long as buying/selling greater than $1,000 the percentage charged is cheaper than the mutual fund charge (1 % to max $50).

Thanks

Q: I often have a variable amount of cash in my USA trading account, while I am looking for trades. Which safe money market fund with a good dividend would you recommend that I can use for short term holds? For example for my Canadian funds I use CMNY, I can trade it like a stock using my TD account. I got that recommendation on BNN market call. It has been very useful. I would like a similar one for the USA. Thanks for all your great advice and service.

Q: Hello 5i,

Are there any other ETF 's similar to HSAV in CAD or US that do not distribute dividends and instead add the dividends to the value of the units?

Thank you!

Q: On 9 Jan 2023, Horizons ETF issued a press release with the following comments on HSUV.U:
“suspension will help manage potential tax implications and ensure that HSUV.U can continue to reinvest its distributions”
“Horizons ETFs is strongly discouraging investors from purchasing shares of HSUV.U”
I was wondering what the risk was for: a) managing potential tax implications, and b) the inability to reinvest its distributions. The other point discouraging investors from purchasing shares was new to me and I’d be grateful for your views.

Also, in the not so remote possibility that the growing US Govt debt finally produced the anticipated “big bang” (ie. default, no new ceiling, … what else?), what would you expect to see just prior to the explosive event? If you were retired and had 65% of your nest egg presently in money market funds (100% safe), what number (% safe) would you apply to moving the funds to HSUV.U?

Your deep and practical insights into how the market reacts continue to surprise and impress me. I have learned so much since my first subscription to 5i and can simply offer a big thank you. And, of course, keep trying to do my own financing homework !

Q: Can you please suggest other ETFs in USD that have similar or better performance to HSAV.
Thanks again

Q: Is there a US dollar version of these that would not have the 15% withholding tax?

Thanks for all your great work
Mark

Q: Good morning, I’m looking to park some cash, both CAD and USD in a savings account ETF. What are your favorite, high yielding, ETF options? Thanks

Q: Hey Peter & Team,

Apologies if I missed the answer when I searched, but I found it difficult to find my answer when I looked for a U$ dollar equivalent to "CASH." What would you suggest 3 - 6 months hold??? OR is there a U$ ETF representing GICs?

Thanks for all you do

gm

Q: I am thinking of adding some HSUV.U to my cash account to earn interest on some U.S. cash that I hold. Do you think that this is a good time to purchase this fund, or is it selling at a premium now, and would it be better to wait? Also can you confirm that the gains are taxed as capital gains in Canada, and is there U.S. withholding tax on the gains? Also, can you suggest a better option with better tax treatment?

Q: Hi There, I have some USD funds, non-registered USD account. Can you please me give a few ideas to park in a high interest, tax efficient investment for a 2-3 months?

Thanks!

Q: RRSP US dollar : any recommendations please for a US ETF equivalent to a cash saving account + optimal interest (accepted by RBC ) ,since in canadian accounts RBC and TD do not trade CASH,PSA ETFs,but accept trading HSAV and MNY .

Q: Hello Team,

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

Thank you!

Q: If the unthinkable happens and the US doesn't raise the debt ceiling leading to the US government defaulting, how would this affect holdings in each of HSAV, HSUV.U and ZMMK? Secondly if an investor held both such an opinion and such holdings, would it then be prudent to sell the holdings before the limit is reached? Please define the risks to these holdings if any actually exist.

Q: Good day,

I was considering parking US$ funds from my brokerage account in SPRXX (Fidelity® Money Market Fund) or VMFXX (Vanguard Federal Money Market Fund). However, I am given to understand that Canadian citizens cannot own US mutual funds. (Thank you for the guidance!)

Is there something else that you can suggest for US$ in lieu of these? How do they compare to Canadian ETFs CASH.TO or PSA.TO in terms of safety etc?

Thank you

Q: Hello everyone,

I have U.S. cash on the sideline and would like to "park" it short term (3/6 mths), can you suggest where to place 20th$ ?
I need to keep funds in U.S. dollars.
Thanks and all the best !

Q: I am interested in both of these ETFs to replace PSA as my savings account. My understanding is that rather than the distributions being taxed as interest as in the PSA the earnings are reinvested and NAV increases accordingly and when I need money sales of units at higher prices are taxed as Capital Gains.
When reading the Horizons website both of these ETFs have suspended sales of new subscriptions. As these ETFs continue to trade am I correct that this will result in market prices being increasingly inflated over NAV. The website also goes on to say that it does not recommend purchasing units when price exceeds NAV.
Can u clarify what this all means and am I ok to purchase these ETFs to use as a savings account to place temporary excess funds.