Investment Q&A

Q: How are the returns on these money ETFs taxed?

Is it better to hold this type of ETF in a registered acct?

Q: Which ETF product would be suitable for a one year holding period in an RESP?

Q: With bank failures in the forefront these days would you still consider HISA ETF's safe in this environment? Will the issues in the banking sector affect the NAV prices of these ETF's?

Q: Hello 5i Team

Further the many questions on HISA ETF (i.e. CASH, HSAVE, PSA etc.)

The Globe and Mail on February 09, 2023 a summary of the brokers services including availability to purchase HISA ETF; HISA Mutual Funds; and GIC.

Link (may be behind a pay wall) - https://www.theglobeandmail.com/investing/article-canadas-top-digital-broker-is-td-direct-investing-with-an-assist-from/

Essentially the three brokerages which do NOT allow HISA ETF are:

BMO Investor Line
RBC Direct Investing
TD Direct Investing

Regardless most brokers allow access to HISA mutual funds, however you may be restricted to the particular brokerages affiliated products (i.e. Royal Bank at RBC Direct Investing TD Bank at TD Direct Investing).

Thanks

Q: My sister needs to park around $90,000 which she intend to put on a house down-payment next February.

She can get around 4.5% for a 9-month GIC.

From reading your website over the years, I know that the above funds are also an option. However, I don't know how to judge the return that can be expected.

Which of the two options (GIC or one of these funds) would you recommend?

Thanks as always.

Q: It looks like we could be heading for a market correction, where are a few good safe place to park cash for up to 6 months..

Q: Would you consider CASH etf as safe as a regular high interest savings account in terms of seeing any kind of large fluctuation in the $50 share price?
looking at parking a large sum of cash before needing for a real estate transaction.

thank you!

Q: I believe all of these ETF’s are paying close to 3%. How do they do this?

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: Good morning

Having slowly raised my cash position recently and still not ready to jump back in as I believe the market will go lower later this year. Could you list a few places to park these funds ranking from best return/conviction

Q: I have an RESP for my nephew who is in grade 12 now and attending a college in the fall. His parents are not great savers, and I don't have children, so I'm fine to subsidize his education. I currently hold only CDZ and TD in the RESP and would like to add some additional cash soon.

What's your advice on how to proceed? Do I add to one or both, or would I be better to invest in CASH or PSA.

Thanks,
Robert

Q: Good day 5i - I would like to know if it is advisable to pay a fee for an ETF Cash Account if you are frequently depositing and withdrawing funds to use to buy stocks, etc. I realize the funds are more liquid. Also, not having used an ETF previously, do you need to be concerned when the ETF is at a higher price when you purchase it. Thank you.

Q: Where did you get the yield on these ETFs being 4.6% and 4.8%? My TD webbroker shows yields of 2.29% and 2.26% respectively

Q: Hello,

What is the difference between PSA and CASH?

Also, I own ZCS and CBO and was wondering if I should increase my allocation to CASH and PSA while reducing my allocation to ZCS and CBO considering the higher rate (better yield) on the short end of the curve. It seems to be higher income / lower risk strategy. Can you please provide your comments. Thank you.

Q: I have some cash that I was thinking of putting into PSA or CASH for the shorter term. But I am wondering if the unit price of those may drop suddenly when the market turns bullish, and investors move back into stocks. So, well I may earn a nice yield, I could lose some capital. Is that something I should worry about? Thanks.

Q: Hi
What is the advantage of holding an ETF like CASH or PSA Instead of a money market fund such as TDB8150?
The latter appears to pay a much higher interest rate (3.8%).
Thank you.

Q: I have a bit of cash on the sidelines that I'd like to deploy in a money market fund/cash proxy etf product to earn a bit of interest on. Do you have any suggested ETFs for this purpose in this market?

Q: I’m looking to put a fairly large cash position to work (my portfolio is 30% cash) over the short term and would like to atleast gain some income (while I wait for a short-term recession scenario to play out) but limit large equity exposure. Can you give some short term bond etfs or some liquid traded products that would serve that purpose. I own a large position in zwb already but realize I’ll still get dinged in a pull back (at which point I’d shift that position back into underlying bank equities for a recovery). And also what kind of yields would I be looking at? I also would like to be paid out atleast monthly. 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.