Investment Q&A

Q: Not having the ability to look into a crystal ball and see the future: How would you invest 500,000 CAD with a 6-month time frame in mind and the realization that there are capital gains and other factors to consider. Investment appetite is mildly-conservative.
Thanks for your ideas. Lesley

Q: Im looking for a place to park some cash for my sons university costs and make a little bit of interest while it sits. Is CASH.TO a safe bet or do you have other recommendations.

Q: Good morning,

I was looking for somewhere to put my money for a short period of time and I heard about money market fund etfs and high intrest savings account etfs. I have a vague understanding of the two but would it be possible to get the pros and cons of each and when they preform differently and the worst case scenario (ie what a maximum loss would look like) for these two types of etfs?

Thank you very much,

Aidan

Q: For earning short term interest, in the past I have bought BA's and CP issued by Canadian Banks. I am now considering PSA and CASH.......which show better yields with lower buy/sell commissions. So - it seems like a no-brainer to put short term cash investments into PSA which shows an indicative yield of 5.5% - versus BA's CP or CASH. Am I missing anything here - does an investment in BA's or CP have advantages over buying PSA?? Does CASH have advantages over PSA despite the lower yield??
Thanks

Q: On behalf of my kids I am about to begin to drawn down some RESP funds. My goal is to keep some invested but move to less volatile/risky investments. As part of that I want to keep 1-2 years worth of draw down as 'near cash' but in an interest bearing instrument within the self directed RESP. What are some suggestions that maximize the cash generated but minimize the volatility?

Q: Hi, Is there a site giving the actual yield of all the HISA ETF’s? The distributions are already decreasing. I guess they are pretty similar, but they change monthly. PS: I do not think the dividend/yield on 5iResearch MarketData are up-to-date. Thanks.

Q: What are my best options for short term to park cash while gaining interest in a registered account, during BNN market call yesterday there was a discussion on a ETF [starting with P?] where interest is calculated daily until you hold the security.

Q: Hi,

Just curious how these ETF providers are able to make money with these etfs with a very attractive rates.

Thanks,

Sunday

Q: Hi 5i, I have a fair bit parked in CASH and PSA, enjoying the decent interest on the funds I dont want to have exposed to market volatility. My question is, if Canadian interest rates drop significantly sooner and/or further than US rates, would it make any sense to move out of CASH or PSA and in to something like HISU.U?

Understand, of course, this introduces the element of currency risk/volatility. But, ignoring that, would this strategy work to continue realizing interest rates of +/- 5% (assuming US holds longer)?

Thanks!

Q: How safe is something like CASH or PSA? I know they invest in the deposit accounts of banks and credit unions and are not protected by CDIC. But what is the worst case scenario? That one of the banks fails? Just trying to determine how much of a safety difference there is between these and a GIC. Thanks!

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: Hi,

My partner I are doing financial planning, we will need a relatively significant (to us) amount of cash in the next 2-5 years for replacing aging cars and a down payment on a larger house.

I am always hesitant to hold cash/GICs for fear of missing out on growth opportunities. Currently, almost all the funds in our RRSPs and TFSA's are invested EXCEPT a long term GIC that came to term and is now sitting in cash (some in TFSA, some in Non-registered). We will need all this cash in the next 2-5 years.

I am looking for ideas on how to manage the cash.

Right now, the best option I can see is GICs with various terms, do you have any other suggestions or ideas to consider?

(we have already owned a house, so cannot use RRSP loan or the new FHSA)

Thanks

Q: What will likely happen to PSA and CASH as interest rates drop?

Q: Do you have a couple of recommendations for safe ETFs that would be alternatives to money market mutual funds for Canadian funds? Thanks

Q: I understand this is a new ETF issued by TD Asset Management. There is a little information on its website. I am interested in it as a short term cash management option. I could not determine the yield. If you look at the current holdings, it states over 90% is invested in other than Canada. In its top 10 it holds a number of Trusts and when you look into these they represent a range of money market investment options including car loans, credit card debt, etc. Though it states the risk is low, its holdings would seem to suggest otherwise. Firstly, can you compare TCSH yield with that of GICs or HISAs. Further, do you have an opinion of this ETF as a place to park money. If you prefer other like ETFs would you also state how you would rank them. Thank you.

Q: I am retired and looking to park some cash. TCSH and MCAD appears to be another type of ETF being offered around fixed income. These ETFs along with ETFs like PSA and CASH seem to be a good place to park some cash for a while. What would your opinion be on the safety of either type of ETF and any advantages or disadvantages of either class of ETF?


Ken

Q: Could you please recommend two 100% safe and liquid holdings, one Canadian and the other American. Could you advise the current interest rate they each pay?

Q: Morning Peter & Team,

Please recommend a minimal risk minimal volatility minimal fee ETF that will generate a good dividend? I am looking at liquidity within 6 months.

Thanks for all you do.

gm

Q: HI,

What is a good time to sell these units/ETFs? To lock in the distribution of that month's interest? I am looking at taking some cash off these and be ready to deploy the capital. Not in a rush. But want to be prepared.

Q: I am looking to park some cash for a while but have it relatively easily accessible. I understand that these ETF’s are not CDIC insurable but other than that what is the downside/risk of these ETFs and which one would you consider the best? Also I noticed that these etf’s are trading above their set value…$50.14. Under what circumstances would they trade back to their $50.00 value?