# Purpose High Interest Savings ETF (TSX:PSA)



## gocanada (Jan 3, 2014)

Does anyone have any thoughts or experience on this ETF?

At 1.35% interest, it seem like a good way to park cash, especially in a Questrade account where I would only pay the selling trading fees.

How else do people park cash?

Thanks!


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## randomthoughts (May 23, 2010)

Looking for a follow up on this - any thoughts? This ETF basically deposits money in a couple of HISAs and distributes the profits monthly.

I'm in the same situation - Questrade with the ability to buy for free.

The obvious risk seems to be that if one of the banks with deposits goes under, you lose half your assets. Is there a risk of fraud or anything like that?


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## AltaRed (Jun 8, 2009)

Why would one buy an ETF of HISA accounts? Buy an offering bought/sold like mutual funds.... no fees either if appropriate selections are made, unless of course, Questrade is so inept they don't have a mutual fund ISA offering. 

See http://www.canadiancapitalist.com/high-interest-savings-accounts-at-discount-brokers/ Surely Questrade offers the Manulife options?


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## gibor365 (Apr 1, 2011)

PSA has yield 1.06%, free mutual fund ATL5000 1.1%, so what the point?


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## Fain (Oct 11, 2009)

EQB200 pays 1.7%.


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## gibor365 (Apr 1, 2011)

Fain said:


> EQB200 pays 1.7%.


Actually it's 1.45%
http://www.equitablebank.ca/brokerage/en/ds-hisa.html
and I cannot buy it in CIBC IE anyway...

I use ATL5000 and HFR


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## AltaRed (Jun 8, 2009)

Fain said:


> EQB200 pays 1.7%.


Only if bought through a fee paid advisor. F series (class) is not available directly to retail investors


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## randomthoughts (May 23, 2010)

gibor said:


> PSA has yield 1.06%, free mutual fund ATL5000 1.1%, so what the point?


Oh didn't realize I could buy that without commissions. Will check, thanks.


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## randomthoughts (May 23, 2010)

AltaRed said:


> Why would one buy an ETF of HISA accounts? Buy an offering bought/sold like mutual funds.... no fees either if appropriate selections are made, unless of course, Questrade is so inept they don't have a mutual fund ISA offering.
> 
> See http://www.canadiancapitalist.com/high-interest-savings-accounts-at-discount-brokers/ Surely Questrade offers the Manulife options?


I didn't think they did...

Edit: looks like it's $10 to buy/sell.


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## gibor365 (Apr 1, 2011)

randomthoughts said:


> Oh didn't realize I could buy that without commissions. Will check, thanks.


ATL5000 (1.1%), TDB8150 and RBF2020(not sure) (1%) - buy and sell without commissions, HFR I both for free when CIBC IE traded for 3 months ETFs for free....

yes, it's $10


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## GalacticPineapple (Feb 28, 2013)

https://www.highinterestsavings.ca/chart/


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## gibor365 (Apr 1, 2011)

GalacticPineapple said:


> https://www.highinterestsavings.ca/chart/


Question was about discount brokerage


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## GalacticPineapple (Feb 28, 2013)

He also asked how people parked cash.


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## gibor365 (Apr 1, 2011)

GalacticPineapple said:


> He also asked how people parked cash.


yes, in brokerage! Can you buy ETF otherwise?!


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## humble_pie (Jun 7, 2009)

perhaps the fact that questrade is a standalone broker, not a bank-affiliated broker, makes it difficult or impossible for them to develop their own HISA product.

the problem for a HISA ETF - which might have been manufactured to fill voids such as questrade's - is that investors tend to stream money into & out of a broker HISA frequently, so the commissions to sell would be onerous.

i for one do something like 15-18 HISA transactions annually, on the sell side, 8 sells @ quoted questrade commish of $5 would cost $40.

steep costs for a small HISA deposit of perhaps $10-30k. Commissions like these will erode the quoted return.


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## AltaRed (Jun 8, 2009)

deleted


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## Canuck (Mar 13, 2012)

interesting thread, I never knew you could buy something equivalent to a HISA through your discount broker.

So right now EQB has a 52 week range of $54-$70, but am I to assume my principal is secure? how does that work

thanks

And do I just buy & sell it like I would a stock (put in an /buy ask price)


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## AltaRed (Jun 8, 2009)

You buy and sell the HISAs just like money market mutual funds, with a FundSERV code. Settlement is T+1. All relevant codes have been supplied in the list via Canadian Capitalist. I know nothing about EQB100.

Principal may not be CDIC insured. Have to check the prospectus like anything else. But just like MMFs, no HISA issuer would be caught dead having the unit value miss its expected unit value of $10 (or in some cases $1 like BMO's AAT770)


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## Canuck (Mar 13, 2012)

thanks.

I see what I did there, I put in the symbol EQB, rather than EQB100.

And PSA will probably cost me $10 to buy and sell, so better to stick with the others.

are these all the same? ( I'm assuming they offered 4 to increase CDIC insurance)
TDB8150, TDB8155, TDB8159, TDB8157


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## Fain (Oct 11, 2009)

AltaRed said:


> You buy and sell the HISAs just like money market mutual funds, with a FundSERV code. Settlement is T+1. All relevant codes have been supplied in the list via Canadian Capitalist. I know nothing about EQB100.
> 
> Principal may not be CDIC insured. Have to check the prospectus like anything else. But just like MMFs, no HISA issuer would be caught dead having the unit value miss its expected unit value of $10 (or in some cases $1 like BMO's AAT770)


Its insured


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## Fain (Oct 11, 2009)

gibor said:


> Actually it's 1.45%
> http://www.equitablebank.ca/brokerage/en/ds-hisa.html
> and I cannot buy it in CIBC IE anyway...
> 
> I use ATL5000 and HFR


Wrong it's 1.70%. Your looking at EQB100


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## AltaRed (Jun 8, 2009)

Fain said:


> Wrong it's 1.70%. Your looking at EQB100


Yes, but to my knowledge a retail investor cannot buy EQB200 directly (e.g. discount brokerage account) since it is advisor class (F class). Please advise if you know differently. F class is normally reserved for advisors who will charge for the service, e.g. fee for service, %AUM, etc.


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## Fain (Oct 11, 2009)

AltaRed said:


> Yes, but to my knowledge a retail investor cannot buy EQB200 directly (e.g. discount brokerage account) since it is advisor class (F class). Please advise if you know differently. F class is normally reserved for advisors who will charge for the service, e.g. fee for service, %AUM, etc.


Retail can have but many retail brokers will choose not. it depends on your broker. Equitable Bank will offer the F-class to whichever broker wants to offer it. Its offered at Questrade


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## james4beach (Nov 15, 2012)

This isn't the only ETF for 'cash'. There's also one called CMR.

As far as I can tell, PSA's deposits are not CDIC insured
http://canadianmoneyforum.com/showt...g-Cash-at-TDDI?p=955914&viewfull=1#post955914


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## Eclectic12 (Oct 20, 2010)

Canuck said:


> interesting thread, I never knew you could buy something equivalent to a HISA through your discount broker.


The brokers have been restricting it to their product for the "no fee, no holding period" ones but where one does one's homework, it usually beats what the basic interest the brokerage account will pay.

http://www.canadiancapitalist.com/high-interest-savings-accounts-at-discount-brokers/


Cheers


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## mikeyrofl (Jul 12, 2016)

Hi everyone, I have a CIBC IE account and was wondering where do you all recommend parking money at the moment? I noticed ALT5000 is only 0.75% thank you!


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## AltaRed (Jun 8, 2009)

mikeyrofl said:


> Hi everyone, I have a CIBC IE account and was wondering where do you all recommend parking money at the moment? I noticed ALT5000 is only 0.75% thank you!


That is par for the course at all the discount brokerages I know, including at BMOIL and Scotia iTrade. All these HISAs are in mutual fund form and the retail public have to buy the A series form which pay trailers to the brokerage. Only if you are an advisor can one access the F series versions that pay another 0.25% but then your advisor takes that away as part of his/her % of AUM fees.

The only other thing you can do is to hold separate HISA accounts at other online banks and then set up transfer mechanisms to move funds to/from your brokerage to these online banks.


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## mordko (Jan 23, 2016)

How is PSA.TO taxed in a non-registered account?


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## Eclectic12 (Oct 20, 2010)

Mostly "other income" aka interest plus a cent or two of Return of Capital for the four years of tax info on their web site.

https://www.purposeinvest.com/funds/purpose-high-interest-savings-etf/


Cheers


*PS*

The link keeps defaulting back to the main page so don't forget to click on the right hand "Distribution & Tax Info" tab. The tax info is at the bottom of the page.


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## mordko (Jan 23, 2016)

Thanks @Eclectic. Guess one can play the system a bit by timing the buy and sell to avoid distributions and being taxed on "capital gains".


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## Eclectic12 (Oct 20, 2010)

??? ... my understanding is that like the big bank HISA MFs, the unit price is held constant so that units paid are the interest.

If one skips the distributions - then one loses only source of CG (aka RoC) AFAICT.


Cheers


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## mordko (Jan 23, 2016)

Unit price steadly increases through the month and then drops before the "ex div" date. So, it is constant (ish) at the same point in the cycle but obviously swells towards the distribution dates. Otherwise people would only buy it before the distribution.


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## Eclectic12 (Oct 20, 2010)

Interesting ... maybe this is a way to have CG only.


Cheers


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## mordko (Jan 23, 2016)

Yep. But considering commission you'd have to put in 7 digits to make a difference and there are far better ways to use 7 digits.


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