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Discussion Starter · #1 ·
Looking for your opinions/experience on this one, as I am relatively new in the world of investing...

I'm considering investing (or "parking") ca. $4,000 in a high-interest savings ETF, as I have some extra cash funds sitting in an RRSP, and I don't feel inclined to invest in stocks/indexes at this time... I'm considering NSAV (Ninepoint), PSA (Purpose), or CSAV (CI First Asset)).

What makes me uneasy is that they are not CDIC-insured.

Do you see this as a deal-breaking problem? Or is it something that's easy to overreact to? (like thinking it's too risky to send cheques through the mail without insurance... ; -)

There are no other descent (short-term) RRSP fixed interest options that I am aware of...

Interested to know your experience on this...
 

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I wouldn't worry about CDIC insurance since the underlying assets within the ETFs are pretty solid and I assume this is a temporary hold anyway, e.g. months, not years.

Current yields I think are in the 0.5% range, give or take. $4k is NOT enough to put into these vehicles if you have $10 commissions to pay, i.e. $20 round trip. $4k @ 0.5% = $20/yr interest. You would be better off being in a CDIC insured brokerage ISA account @ 0.2-.25% bought and sold as mutual funds with no commissions. Which brokerage?
 

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PSA is quite good as last time I looked, they mainly held cash deposits with credit unions and they also mix GICs into their portfolio to boost the yield.

But I'd stick with the ISA because of the fee issue mentioned here. Plus, some brokerages forbid trading on PSA, which I still think a lawyer should be looking into as it might be anti competitive.
 

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Discussion Starter · #4 ·
I wouldn't worry about CDIC insurance since the underlying assets within the ETFs are pretty solid and I assume this is a temporary hold anyway, e.g. months, not years.

Current yields I think are in the 0.5% range, give or take. $4k is NOT enough to put into these vehicles if you have $10 commissions to pay, i.e. $20 round trip. $4k @ 0.5% = $20/yr interest. You would be better off being in a CDIC insured brokerage ISA account @ 0.2-.25% bought and sold as mutual funds with no commissions. Which brokerage?
Thank you. I much appreciate this. I wasn't aware of mutual fund ISAs (Investment Savings Acount?). As for the non-CDIC thing, yes, I figured this was something that could yield a fear-factor that isn't as bad as people think (I figure these funds exist for a reason...). Yes, it's for a temporary hold, months, not years...

The $10/$20 both ways thing is very relevant, too. I find this can take a hit on small time investors. I'm with RBC Direct Investing. Do you know any worthwhile ISAs off-hand? I like the ISA take :)
 

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Discussion Starter · #5 ·
PSA is quite good as last time I looked, they mainly held cash deposits with credit unions and they also mix GICs into their portfolio to boost the yield.

But I'd stick with the ISA because of the fee issue mentioned here. Plus, some brokerages forbid trading on PSA, which I still think a lawyer should be looking into as it might be anti competitive.
Really appreciate this. Thanks. I like the idea of credit unions, too. But, yes, as mentioned, the ISA seems a great route :) Something that was unknown to me :cool:
 

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Thank you. I much appreciate this. I wasn't aware of mutual fund ISAs (Investment Savings Acount?). As for the non-CDIC thing, yes, I figured this was something that could yield a fear-factor that isn't as bad as people think (I figure these funds exist for a reason...). Yes, it's for a temporary hold, months, not years...

The $10/$20 both ways thing is very relevant, too. I find this can take a hit on small time investors. I'm with RBC Direct Investing. Do you know any worthwhile ISAs off-hand? I like the ISA take :)
Rbf2010
 

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The $10/$20 both ways thing is very relevant, too. I find this can take a hit on small time investors. I'm with RBC Direct Investing. Do you know any worthwhile ISAs off-hand? I like the ISA take :)
As post #6 said, RBF2010. Remember these are sold under the mutual fund "Fundserv" system to facilitate buying and selling, but are actually CDIC insured deposit accounts.
 

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Discussion Starter · #9 ·
Got the information, thank you! It's confirmed, 0.20% :) Case closed! (y)
It's really a question of nickels and dimes, so not much is at stake ;)
Thank you for opening my eyes to this option :geek:
Would like to wish all a good Victoria weekend :)👐
 
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