# Ally rate now lowered to 1.2% ...What is the best HISA now in Canada??



## warp (Sep 4, 2010)

With RBC taking over ALLY , today they lowered their HISA rate to a lousy 1.2%.

I would like to ask anyone on this Forum what financial institution they use for their high interest savings accounts. Please let us know what you like about who you use, or who you would recommend.

Obviously, also please post their High Interest Savings rates, and if they are easy to use, and easy to move funds in and out of , preferrably ONLINE.

As well. it would be important to include if they are covered by the CDIC, or by provincial Deposit insurance, and to what amounts, if you know.

Tell us who you think has the best HISA in Canada. Thanks for any info/responses.


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## iherald (Apr 18, 2009)

Implicity Financial is a Manitoba credit union but accepts money from anywhere is currently at 2%


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## J Watts (Jul 19, 2012)

Updated regularly: http://forums.redflagdeals.com/offi...avings-accounts-2013-tfsa-season-here-681290/


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## Echo (Apr 1, 2011)

I've just updated this article with the top savings account rates. http://www.boomerandecho.com/canadian-high-interest-savings-account-comparison/

Not much difference between these accounts now and so I think your other criteria becomes more of a factor (easy to move money in and out online, CDIC insurance, etc).

I'm using ING Direct.


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## jamesbe (May 8, 2010)

Echo, good review of the accounts. You may want to note here:


> On the surface, the RBC High Interest eSavings Account appears to be a really competitive option with no minimum balance and no monthly fees, but when I dug a bit deeper there are still plenty of fees and restrictions on this account.
> 
> Although you can still pay bills online, there is a $5 fee for every assisted transaction, and a $5 fee for any money transfers outside of your RBC accounts. You are allowed one cash withdrawal per billing cycle.


That although RBC does charge if you move money or pay bills from their savings account (what a crock at $5 a transaction) they do not charge to move the money to a linked chequing account. So just move the money from savings to chequing and then pay the bill, the move from savings to chequing is instant.


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## leoc2 (Dec 28, 2010)

Echo said:


> ...
> 
> I'm using ING Direct.


What about using Peoples Trust Bank?
https://www.peoplestrust.com/main/


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## Echo (Apr 1, 2011)

@jamesbe - thanks for pointing that out.

@leoc2 - I find that some of the smaller FI's and credit unions move their rates around a lot. For example, last year Peoples Trust paid 2.1% and now they pay 1.9%. I'd rather find a stable account that I can link to my chequing account and that's easy to move money in and out of.


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## My Own Advisor (Sep 24, 2012)

PCF Interest Plus isn't too bad...1.35% I recall with only $1K min.


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## dsaljurator (Jan 12, 2012)

i use ctfs right now. I started with ING, and left them for PCF when PCF first started to offer interest plus. when PCF's rates dropped, i moved to CTFS.

i've always used http://www.highinterestsavings.ca/chart/ to see what rates are out there on accounts of this type. It also has the history of rate changes.


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## leeder (Jan 28, 2012)

I personally use PCF interest plus savings account, now that RBC is being a douche about Ally.



My Own Advisor said:


> PCF Interest Plus isn't too bad...1.35% I recall with only $1K min.


I just got a letter yesterday from PCF. Effective April 1, 2013, interest plus and the tfsa accounts will no longer have the anniversary bonus (I think they will still pay it for 2013, but after the last payment, this bonus interest will not be given). They also removed the $1,000 limit.

With all this said, I wonder if I'm better off putting excess savings, which I won't use but want to preserve the capital, into a monthly GIC. I know TDW issues one that is 1.45%...


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## My Own Advisor (Sep 24, 2012)

@leeder,

Really?

I couldn't find anything on their (PCF) site:
http://www.banking.pcfinancial.ca/a...ccount.page?region=ON&language=en&signinop=OB

Maybe the internet is not up to date with the paper you got


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## lonewolf (Jun 12, 2012)

With registered accounts the fees can get expensive when transfering to another institution. Credit unions like iherald pointed out for having a high rate also seam to have lower transfer fees.


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## Maybe Later (Feb 19, 2011)

I think Canadian Direct is 1.9%?, 2.55% in TFSA. Their website is a bit clunky, but navigable.


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## leeder (Jan 28, 2012)

@ Maybe Later: I have the 2.55% TFSA from Cdn Direct through Canadian Western Bank. They used to pay 3% for a number of years before dropping to 2.55% last year. I have no issues with this product whatsoever and would highly encourage anyone who wants cash in their TFSA to take a look at it. As for the 1.9% nonregistered HISA, I would be careful because, as listed on the Cdn Direct website, there are lots of fees attached.


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## warp (Sep 4, 2010)

Anyone dealing with ACHEIVA Financial?

I am moving from Ally/RBC, as they have lowered their rate overnight with no notice.

I have spoken with Acheiva...they npay 2%....will give you free checks, and you are allowed 1 tranfer a month, and ony $1 each after that. I would be using it as a savings vehicle only anyway.
They told me that they have very easy ONLINE transfers with just a few clicks. 
Deposits are covered 100% by the Manitoba Deposit Guarantee corp, ( who I called, and I was told they do much diligence to assure the deposits are safe)
It all sounds good........does anyone have experience with them?...Perhps I may start a new thread asking for Acheive clients to post their experience.

I am also using People's Trust at the moment. They pay 1.9% ,and they have always been easy to deal with. They just recently started allowing Online transfers. I haven't used that system there yet, as again , it is simply a savings vehicle.

ALLY was paying a bit less at 1.8%, but they were very easy to deal with and the customer service was good too.
Too bad they are gone, As an RBC shareholder, I hope they know what they are doing with this deal.

I will thankyou in advance for any replies.


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## purple.platypus (Dec 10, 2012)

Echo said:


> I've just updated this article with the top savings account rates. http://www.boomerandecho.com/canadian-high-interest-savings-account-comparison/
> 
> Not much difference between these accounts now and so I think your other criteria becomes more of a factor (easy to move money in and out online, CDIC insurance, etc).
> 
> I'm using ING Direct.


What are your criteria for inclusion? Besides various other options mentioned in this thread, at least three online institutions associated with Manitoba credit unions are offering 1.95%, fully insured, including Outlook Financial who I am with. Overall, of what I'd consider the really attractive options, very few are listed in that article.


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## warp (Sep 4, 2010)

purple.platypus said:


> What are your criteria for inclusion? Besides various other options mentioned in this thread, at least three online institutions associated with Manitoba credit unions are offering 1.95%, fully insured, including Outlook Financial who I am with. Overall, of what I'd consider the really attractive options, very few are listed in that article.



I haven't seen much on OUTLOOK Financial in my searches. You say you have a HISA account with them paying 1.95%.
What features do you like there? Do they have ONLINE transfers, and is the website easy to navigate and deal with?
Are transfers done in a timely manner,,,eg, 3 days?
Also, are there any fees, and what are the fees like?
Do they allow you to easily open joint accounts?

At ACHEIVA I was told you can ONLY open a joint account if the bank account you want to link the HISA to, is also a joint account. This is a bit of a minus to me, as ALLY allowed you to open a joint account very easily, without the linked bank account having to be joint.

There's always something!

thanks for your, and all other, replies


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## Echo (Apr 1, 2011)

purple.platypus said:


> What are your criteria for inclusion? Besides various other options mentioned in this thread, at least three online institutions associated with Manitoba credit unions are offering 1.95%, fully insured, including Outlook Financial who I am with. Overall, of what I'd consider the really attractive options, very few are listed in that article.


For the chart, I looked at the big 5 and the popular online banks and then I mentioned the top credit unions and smaller FI's in the paragraphs below the chart (including Outlook). Reality is, most people feel more comfortable with a known brand.


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## Young&Ambitious (Aug 11, 2010)

Is anyone familiar with Canadian Western Bank?

They are offering 2.55% for a TFSA demand account. 

http://www.cwbank.com/rates/tfsa.asp


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## leeder (Jan 28, 2012)

Young&Ambitious said:


> Is anyone familiar with Canadian Western Bank?
> 
> They are offering 2.55% for a TFSA demand account.
> 
> http://www.cwbank.com/rates/tfsa.asp


I keep a portion of my TFSA with CWBank's demand account. As mentioned previously, this 2.55% is actually a product of Canadian Direct Financial, which is a subsidiary of Canadian Western Bank. They will allow you online access to view your money, but if you want to withdraw or transfer money, you need to be physically at the bank. That said, the staff at CW is pretty nice and don't ask a billion questions if you do withdraw money, unlike some other financial institutions.

Also note that previously, their TFSA demand account was at 3% interest. They were at 3% for a couple years before dropping to 2.55% last summer. There's no telling whether or not the 2.55% will remain; however, the people there have not indicated an impending decrease in the near future.


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## Young&Ambitious (Aug 11, 2010)

Alright so after reviewing all of the options I am going to go with Peoples Trust Company. So long Ally, it was nice knowing you...!


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## fraser (May 15, 2010)

We will be exiting Ally.

That is what is so good about the web. You can pick the best rate/institution and move yor funds immediately and with very little hassle.

Perhaps Ally's new owners have overlooked this. 

Bye bye Ally. Fortunately you are not the only game in town!


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## purple.platypus (Dec 10, 2012)

warp said:


> I haven't seen much on OUTLOOK Financial in my searches. You say you have a HISA account with them paying 1.95%.
> What features do you like there?


Honestly, mainly just the (relatively) high interest rate. Their GIC rates are also very competitive with a relatively low ($1000) minimum.


> Do they have ONLINE transfers, and is the website easy to navigate and deal with?


No and yes, respectively. For transfers and such, I use ING Direct, where my main day-to-day chequing account is, as a main "hub" and control such things from there, so the lack of this feature at Outlook doesn't bother me. Under other circumstances, it might.


> Are transfers done in a timely manner,,,eg, 3 days?


Yes, usually the end of the second business day so far.


> Also, are there any fees, and what are the fees like?


If you mostly just put money _in_, and you make at most one transaction per month that takes money _out_, you will pay no fees. There is no minimum balance for this, or anything like that. Any transaction that involves removing money from your Outlook account - cheque, bill payment, ATM withdrawal (at any credit union), transfer, whatever - is $1 a pop for each one beyond the first every month.


> Do they allow you to easily open joint accounts?


I don't know.


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## james4beach (Nov 15, 2012)

I have also used Outlook financial for many years. No complaints. I use PC Financial to move money in & out. I also write cheques from Outlook to move money out... 1 free withdrawal a month.

I also have some money in their GICs.


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## Cal (Jun 17, 2009)

Leaving Ally also. I have to wonder what rate of customer loss RBC had calculated when they purchased Ally, I received the paperwork the other day regarding closing the accounts by the end of April.


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## My Own Advisor (Sep 24, 2012)

@Cal,

I had thought about that as well, they must have projected a major customer-base loss... 50% maybe?


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## warp (Sep 4, 2010)

Just to let you all know, in case you didn't see it...( which I found out by accident and luck before opening an account there).....ACHEIVA lowered their rate today to 1.8% !

Probably because ALLY has been taken out of the picture.

Anyone else know of a higher/better HISA to look into?


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## Four Pillars (Apr 5, 2009)

warp said:


> Anyone else know of a higher/better HISA to look into?


Here are my thoughts :

http://www.moneysmartsblog.com/best-canadian-high-interest-savings-rates-for-ally-replacement/

Of course the rates are subject to change, so hard to know which one is truly the best.


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## warp (Sep 4, 2010)

PILLARS.

Thanks for that post...I did read it.

After much looking around, and wasting time, I just went with People's Trust.
I already had accounts there, and opened up a couple more family accounts,, with diff joint names, to get the extra CDIC coverage.

I will say again however, that it is dam sad that we have to consider 1.9 % or 2 %, as a "high" interest savings account, to park "safe" cash.


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## Dave (Apr 5, 2009)

Outlook financial reduced the savings account rate from 1.95% to 1.80%. That really sucks. I wonder why they are suddenly in a hurry to reduce rates if the Bank of Canada baseline rate has nowhere lower to go. 

Dave


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## GoldStone (Mar 6, 2011)

Dave said:


> I wonder why they are suddenly in a hurry to reduce rates...


Less demand for mortgages and other loans?


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## 6811 (Jan 1, 2013)

Dave said:


> Outlook financial reduced the savings account rate from 1.95% to 1.80%. That really sucks. I wonder why they are suddenly in a hurry to reduce rates if the Bank of Canada baseline rate has nowhere lower to go.
> 
> Dave


Greed. And because they can.


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## NorthernRaven (Aug 4, 2010)

Ally was probably well-known and slick enough that it acted as a bit of a "floor" on rates - many people looking for high interest would probably feel comfortable there, and lesser institutions probably had to offer rates at least numerically better to attract attention. With Ally gone, the general downward pressures would weigh heavier, since everyone left at the high end is in the same sort of "small-fry and oddball" boat. It doesn't look like the underlying BoC rate is going up anytime soon, and the extra spread can be used to pay for the mortgage rate battles. It is no more "greed" to reduce deposit rates than it is "generosity" to reduce mortgage rates - they are balancing their cost of funds with attracting customers to various products.


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## Echo (Apr 1, 2011)

Canadian Tire Financial also dropped its rate from 1.7% down to 1.5% on Feb 22nd.


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## eulogy (Oct 29, 2011)

Echo said:


> Canadian Tire Financial also dropped its rate from 1.7% down to 1.5% on Feb 22nd.


Yeah, I put my application in the mail on the 22nd in the morning. Boy was I pissed when I got to work and saw that they dropped it. It seems to function just like Ally, which is what I was really looking for, but it seems like they're taking the full 5 business days for deposits (which I'm not thrilled with).


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## My Own Advisor (Sep 24, 2012)

Ouch. re: CTC. I don't mind PCF, some stability there...for now...I think...maybe....


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## Beaver101 (Nov 14, 2011)

Thought I bump up this thread .. is anyone still using HISA in their brokerage accounts? If so, which one do you use or considered the best currently (November 2014)? I took a look at one HISA dedicated website but the info is at least a year old - BTB100 was the best then but I can't even locate this fund in my brokerage account. Thanks in advance for any info! each:


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## carverman (Nov 8, 2010)

My Own Advisor said:


> Ouch. re: CTC. I don't mind PCF, some stability there...for now...I think...maybe....


Don't think so. They are Loblaws virtual bank wearing Galen Weston's disguise using the CIBC infrastructure and rates and they play games with your
money just like the others. HISA is a misnomer these days...they should change it to LISA.


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## Beaver101 (Nov 14, 2011)

carverman said:


> Don't think so. They are Loblaws virtual bank wearing Galen Weston's disguise using the CIBC infrastructure and rates and *they play games with your
> money just like the others*. HISA is a misnomer these days...they should change it to LISA.


 ... how's that? I'm trying to figure out which version of L stands in the misnomer LISA ... low or looser? :biggrin:


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## carverman (Nov 8, 2010)

Beaver101 said:


> ... how's that? I'm trying to figure out which version of L stands in the misnomer LISA ... low or looser? :biggrin:


loser..as the rate of return at 1.x% with tax consequences is far less than the current rate of inflation at 2.4%

http://www.rateinflation.com/inflation-rate/canada-inflation-rate


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## NorthernRaven (Aug 4, 2010)

Presumably anyone using an ISA (Investment Savings Account, via brokerage) is only parking cash for a short time (days, weeks) while waiting to re-invest. Otherwise, transfer out to HISA/GIC of one's choice. You can't do that in an RRSP/TFSA, but holding cash in those at a brokerage for any significant time probably isn't a good thing.

Here's a list of many ISAs. All the ISAs seem to converge on a common rate (currently 1.25%), with little or no variation. Also, I think some of the big-bank brokerages are limiting choice to just their own ISAs.


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## Beaver101 (Nov 14, 2011)

*Sorry, I kind of lost ya here. Do you mean we can't hold a HISA in a RRSP or just the transfer out? I have these divies accumulated in my RRSP cash account over the course of the year and I don't know what to buy with them and so looking at the optimal to park it - for short term of a couple or more months. Not interested in a GIC (locked in) nor in money market funds (MER) as done that before.


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## Beaver101 (Nov 14, 2011)

> _*Originally posted by carverman*: loser..as the rate of return at 1.x% with tax consequences is far less than the current rate of inflation at 2.4%
> 
> http://www.rateinflation.com/inflati...inflation-rate_


...

You have a point but look on the bright side, at least CPP/OAS is indexed to inflation.


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## NorthernRaven (Aug 4, 2010)

Beaver101 said:


> *Sorry, I kind of lost ya here. Do you mean we can't hold a HISA in a RRSP or just the transfer out? I have these divies accumulated in my RRSP cash account over the course of the year and I don't know what to buy with them and so looking at the optimal to park it - for short term of a couple or more months. Not interested in a GIC (locked in) nor in money market funds (MER) as done that before.


Sorry, I meant you can't transfer funds out of the RRSP to the high-paying institution of your choice. You can still buy into whatever ISA your broker offers, currently at around 1.25%. If this was a non-registered account, you could just move the cash out to Peoples/Hubert/etc.

Note that the CDIC-insured funds on that list are normally referred to as ISA (Investment Savings Account), rather than HISA (a standalone high interest savings account). They are bought and sold like stocks/mutual funds, are in street name (the broker's, in trust), and would be separate from any other $100,000 CDIC limit grouping you might have at the issuing bank.

There's actually an extra 0.25% the issuing banks are willing to offer (1.50%), but the versions being sold by the brokerages are "A" (advisor) class, and the brokers get that quarter-point commission.


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## Beaver101 (Nov 14, 2011)

^ okay, thanks for the response! each:


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## Butters (Apr 20, 2012)

could add another one to that list... an etf called, PSA.to it has a benchmark of 1.36%
watch bid/ask and free ETF purchase with questrade (5$ to sell)
http://www.purposeinvest.com/funds/purpose-high-interest-savings-etf/


This is also a really good chart/comparison for HISA
https://www.highinterestsavings.ca/chart/


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## james4beach (Nov 15, 2012)

SheaButters said:


> could add another one to that list... an etf called, PSA.to it has a benchmark of 1.36%


This has no deposit insurance at all. The ISAs at 1.25% are CDIC (federally) insured.

I don't see any point to PSA. You can go with a credit union (I use Outlook) and get 1.8%, which still has deposit insurance through the provincial guarantee corps. Why would one accept a lower yield (1.36%) _and_ give up deposit insurance?


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## Butters (Apr 20, 2012)

I did list the chart with 1.8% rates. 

PSA you can transfer to PBI (or vice versa) and not pay capital gains. Was just giving another option to park brokerage money.


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## Eclectic12 (Oct 20, 2010)

carverman said:


> loser..as the rate of return at 1.x% with tax consequences is far less than the current rate of inflation at 2.4% ...


Where one is willing take additional risk plus has a longer time frame ... I understand this.
Where one needs the money in a short time frame ... how is being paid 0.05% or less a better deal?

Surely losing 1.1% plus taxes is better than losing 1.9% plus taxes?


Cheers


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## Eclectic12 (Oct 20, 2010)

SheaButters said:


> ... PSA you can transfer to PBI (or vice versa) and not pay capital gains.
> Was just giving another option to park brokerage money.


If it's brokerage money in a taxable account ... isn't it an *advantage* to pay the lower capital gains tax rate versus reporting the interest as income?

The way I understand HISA MFs, the additional units from interest are re-investments at the same per unit cost. The net effect is that proceeds ACB always equals the cost ACB so that only the interest is reported.

If as the PSA page says, everything goes into bank HISA's - one still have to pay taxes on the interest, do they not?


Cheers


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## Butters (Apr 20, 2012)

Say you made a gain of 20k with PBI and u felt that equities were not your cup of tea now, and u plan on making less money next year in a lower tax level, you can transfer to PSA hold out a few months and then sell in 2015 year, etc. 

Again I was just listing another name. Take it however you want. 



I got some in People's Trust.


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## Eclectic12 (Oct 20, 2010)

So it's not about starting with a HISA then.


Cheers


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## fstamand (Mar 24, 2015)

PSA was mentioned many times in this thread. I notice the charts appear to be a monthly up/down between 50.00 and 50.05. What is the method of operation with this type of etf, buy at 50.00, sell at 50.05, or just buy, hold and sell when the liquid is required ?


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