Canadian Money Forum banner
1 - 10 of 10 Posts

· Registered
Joined
·
11,330 Posts
^ What's so interesting about its 5 years chart, especially on a HISA. Just look at 2023 - the highest point I see from that tiny chart is $50.15 so a quick calc seems to indicate it gave a 3% rate. Whoopie. And are you prepared to pay a commission to acquire some units? I would rather stick it in a regular GIC unless you need liquidity - ie. sell off some units at anytime.
 

· Registered
Joined
·
14,113 Posts
The only thing interesting is it validates how short term interest rates dropped circa Mar 2020 and then took off again later in 2022.

I think an ISA would have yielded better, or about the same, than these Cash ETFs which have buy/sell commissions in some/most brokerages.
 

· Registered
Joined
·
3,949 Posts
Anyone hold this ETF.? Seems to have had an interesting 5-yr chart - if your timing was good....

View attachment 24066
Nothing special here, it's a graph showing the effect of dividend distribution on price.

If you buy low, basically right after the ex-dividend date, you'll buy at $50, then the price will slowly increase as it approaches the ex-dividend date, where you are allowed to get the next dividend.

If you sell right before that date, you'll be at the peak $50.15, which is a 0.3% profit for the month, but you won't get the next dividend.

If you sell right after that date, you'll get the next 0.15$ dividend, but the price will have dropped back to $50. Same profit.

Basically, you can't game it, you can't try to win from timing it.
 

· Registered
Joined
·
25,821 Posts
If you have no trade commissions, CSAV would be a good one. They simply deposit into savings accounts across a few major banks (the list can be found on their web site). There are a few like this and they're all similar:

CASH, CSAV, PSA

All of them are banned at TD Direct Investing, RBC DI and maybe other bank brokerages.

That chart is also misleading because of all the distributions. You have to look at it in total return form which looks like this using adjusted prices (to include interest distributions).
Rectangle Slope Line Font Plot
 

· Registered
Joined
·
11,330 Posts
Hey jargey3K, you might want to consider HISA/ISAs from this thread. At least there's no commissions required upfront for these (unless you're getting free buy & sell of ETFs already). As to which HISA/ISA you can buy depends on which brokerage you are with.

high interest savings account

4.75% 4.25% for a HISA at iScotia is aheck lot better than that ETF I say. Heck, the HISA over at Manulife at 4.10% is still better than that ETF that I have to pay commissions on.
 

· Registered
Joined
·
2,311 Posts
HSAV pays 4.57% after fees. I might dump some $ into there vs just cash. It's total return so cap gains vs interest too.
HSAV: TSX TAX-DODGER
Horizons Cash Maximizer ETF - Horizons ETFs
Horizon's CAD - tax avoidance perk - converts interest income into capital gains (taxed half as much)
Gross Yield: 4.75%, MER: 0.18%
Remarks: Closed-end fund now - check NAV premium/discount to not get ripped off, amazing use-case in taxable account
Data update date (MM/DD/YYYY): 12/08/2022

Formula
Discount/Premium to NAV = (Price / Net Asset Value) -1
Both price and net asset value can be found @ Horizons Cash Maximizer ETF - Horizons ETFs [on the right-hand side of the page below the category ribbon/tabs]
 

· Registered
Joined
·
1,695 Posts
HSAV: TSX TAX-DODGER
Horizons Cash Maximizer ETF - Horizons ETFs
Horizon's CAD - tax avoidance perk - converts interest income into capital gains (taxed half as much)
Gross Yield: 4.75%, MER: 0.18%
Remarks: Closed-end fund now - check NAV premium/discount to not get ripped off, amazing use-case in taxable account
Data update date (MM/DD/YYYY): 12/08/2022

Formula
Discount/Premium to NAV = (Price / Net Asset Value) -1
Both price and net asset value can be found @ Horizons Cash Maximizer ETF - Horizons ETFs [on the right-hand side of the page below the category ribbon/tabs]
It is overpriced vs the RSI too. So I'll wait until the NAV and price are more similar
 
1 - 10 of 10 Posts
Top