Saving account ETF | Page 3 | General financial discussion | Discussion forum

Norman1 said
The Globe & Mail article indicated that BMO InvestorLine will charge the usual $9.95 online trading commission for the PSA orders, even though a live representative is involved.

Normally, it is minimum $43 commission when a live representative is involved.

It is possible the representative could try to steer the caller to something else. There is a new cash ETF, the CI First Asset High Interest Savings ETF (symbol CSAV), that the writer mentions in his June column This is the place to stash your investing cash.

CSAV holds deposits in Royal Bank, Bank of Montreal, ScotiaBank, National Bank, and CIBC. The Big 5 Bank owners of the discount brokers may find CSAV more palatable.  

Thanks for the info. Like probably a lot of people here, I'm not a Globe subscriber and the content of their articles is hidden behind a pay wall and therefore unreadable

Norman1 said
The Globe & Mail article indicated that BMO InvestorLine will charge the usual $9.95 online trading commission for the PSA orders, even though a live representative is involved.

Normally, it is minimum $43 commission when a live representative is involved.

It is possible the representative could try to steer the caller to something else. There is a new cash ETF, the CI First Asset High Interest Savings ETF (symbol CSAV), that the writer mentions in his June column This is the place to stash your investing cash.

CSAV holds deposits in Royal Bank, Bank of Montreal, ScotiaBank, National Bank, and CIBC. The Big 5 Bank owners of the discount brokers may find CSAV more palatable.  

With all due respect, Norman, I think that's just idle speculation with no basis in fact. There's no indication the Big 5 bank-owned discount brokerages are in some way ideologically opposed to PSA from Purpose Investments. As well, from time to time, Purpose even holds one or more Big 5 bank GIC or HISA within its fund. It's just yet another channel in which to distribute their deposits. Even if it's not holding a Big 5 bank GIC or HISA, the discount brokerages still benefit from the trading commissions to enter or exit the position. I don't you can say that they are (a) opposed to PSA because it tends to hold CU or mid-tier bank GICs or HISAs and, subsequently, (b) that they'd find CSAV more palatable. Moreover, there's nothing stopping CI Investments, which manages the CI First Asset ETFs, from changing up the fund's holdings.

As well, there are a few other really good, liquid cash equivalent ETFs such as Horizons' short-term Floating Rate ETF (HFR) that does an equally good job of maintaining a constant $10 NAV (within a few pennies either way) that pays (currently) between 2-2.5%. As far as I know, no DB prohibits trading in that ETF. Other potentially good short-term cash equivalent ETFs include the BMO Ultra Short Fixed Income ETF (ZST) or its Accumulating Series version (ZST.L) that accrues the distribution to the NAV of the series, if you don't want to be paid the income on a monthly basis.

At any rate, regulatory proposals may finally bring about some change in the sector, with regulators increasingly concerned about DBs earning trailer fees for advice they're not providing. They could either (a) ban DBs from accepting the trailer fees, forcing the issuers to create a new class of their ISAs for the DBs to distribute or (b) compel the DBs to offer the Series F version of the ISAs to their customers. I think either of these options are "quite likely" within the next five years.

Cheers,
Doug

AltaRed said
Off-tangent: Until the G&M has digital subscriber pricing something like the NY Times ($1CAD/week promotion), most of us won't subscribe. The NYT promo rate is good for 52 seeks and then reverts to $3.75/week......but if one threatens to cancel at the end of the promo, one can negotiate another 52 weeks at the $1/week promo rate. I just did that...saying 'I'd love to support US mainstream media against the threats of the WH politicians, but as a Canadian, I don't love the US that much. What is the best you can do for me?'

P.S. I'd consider up to $10/mo for G&M digital subscription but they should be willing to be close to the NYT rate. If they won't negotiate, their loss......

Globe & Mail had a flash sale of 99¢/week several weeks ago. I couldn't accept because I was already on a $1.49/week special rate.

The current special is $1.99/week for 24 weeks.

suburbs4life said

I use questrade. Is there a US listed HISA etf people would suggest? Does PSA have a US listed ETF? I use the canadian version on TSX for temporary cash storage. I couldnt find a US listed one but just wanted to check here.  

They do have a website❗

All your 'PSA' questions can be answered here :

Link ➡ https://www.purposeinvest.com/