Please add a Chart on cash-alternative USD ETFs in Canada? | Site suggestions | Discussion forum

Why? There are only about 6 each of Canadian domiciled CAD and USD ETFs and yields constantly change as they do for CAD and USD money market mutual funds.

It would seem to be an endless and fruitless task to update yields perhaps on a weekly basis. Those who are in the market for those ETFs will already be tracking them.

StackExchange said
Your reply feels cantankerous? There exist many more than "6 each of Canadian domiciled CAD and USD ETFs".

HPYT.U — Harvest Premium Yield Treasury ETF

HYLD.U — Hamilton Enhanced U.S. Covered Call ETF

MNU.U — Purpose USD Cash Management Fund

LPAY.U — Global X Long-Term U.S. Treasury Premium Yield ETF

MPAY.U — Global X Mid-Term U.S. Treasury Premium Yield ETF

SPAY.U — Global X Short-Term U.S. Treasury Premium Yield ETF

UBIL.U — Global X 0-3 Month U.S. T-Bill ETF

It would seem to be an endless and fruitless task to update yields perhaps on a weekly basis. Those who are in the market for those ETFs will already be tracking them.

Couldn't you asseverate this of our HISA and GIC charts?  

Have you thought of building your own chart and having it hosted on cloud site with open public access? You could then come back to this site and post the link. Of course you would ideally keep it up to date, I'm not sure if there's a way to scrape the data daily for updates.

StackExchange said
Couldn't you asseverate this of our HISA and GIC charts?  

Not really. Each FI's deposit rate often stays the same for months on end.

MMFs and Cash ETFs, as flow through entities, can have a different yield each day. No chart for any of offerings would be 'current' for any length of time. They are simply a very different animal to fixed deposit rates (HISAs, GICs, even ISAs).

I doubt there would be many followers from those participating in this site and in most cases, MMFs now are equivalent performers to Cash ETFs since OSFI clipped the wings of Cash ETFs last winter, and especially so for those paying brokerage commissions to buy and/or sell Cash ETFs. It would likely be more value to follow MMF yields for most retail investors.

TINAisOver said
How useful a list of these types of investment products for the viewers and members of this site is warranted. An ongoing post, like the way Norman1 manages the ISAs in a forum discussion, listing the monthly distribution , ex-date, and a list of HISA / MMF ETFs is do-able, if there is someone willing to do so.  

I think @StockExchange seems to be keen on these EFT's. Perhaps they might be interested and willing to take it on.

TINAisOver said
Since I actively trade these financial products I have been tracking them for myself for the last two years. My list is about 10 deep and I just actually trade about four of them.
Most importantly to me is the periodic distribution amount and the ex-dividend date. Then I work those into my spreadsheet. I calculate the NAV of each ETF from the previous ex-div. date.

But I think that I'm a unicorn on this site when it comes to using these products. Instead of daily savings accounts for storing large amounts of cash earning interest I use these. From the comments made by members its clear to me that these ETFs are not well understood overall.

How useful a list of these types of investment products for the viewers and members of this site is warranted. An ongoing post, like the way Norman1 manages the ISAs in a forum discussion, listing the monthly distribution , ex-date, and a list of HISA / MMF ETFs is do-able, if there is someone willing to do so.  

What do you mean by "trading" these products, selling before record date and buying at record date to have capital gain instead of interest? Which are the HISA you are using (ZST, MNY, PSA ...?) Thanks, Fritz

AltaRed said
...
FWIW, I suspect most will simply buy and hold such products simply because most brokerages have buy/sell commissions on Cash ETFs. OTOH, with few exceptions, buy/sells of ISAs and MMFs are commission free.  

Agreed. every investor's circumstances vary and will make investment decisions accordingly.

Fritz23 said

What do you mean by "trading" these products, selling before record date and buying at record date to have capital gain instead of interest? Which are the HISA you are using (ZST, MNY, PSA ...?) Thanks, Fritz  

"Trading " because I'm in and out frequently. Primarily I use these ETF's as my cash account . In my case its much more fluid than my cash account and I'm earning value over time more so than my cash account. I want my cash funds available at all times to make stock purchase opportunities but I I don't know when my next trades are coming or I could take days off trading and earn while my cash sits idle (BTW, this is by fulltime gig. Investing / trading is my only source of income). Also, for Tax purposes I do sell prior to taking the ETF dividend and it buy back afterwards. Basically there is a significantly lower tax hit once you get into the higher tax brackets.

I often use Evolve's HISA, CASH, and MMF ETF's , I use ZMMK and CMR.

AltaRed said
I think that is the general idea, to create cap gain rather than fully taxed interest.

However, there are costs involved such as bid/ask spread, loss of 3% of the yield due to being out of the market for at least 1 business day (record date --> ex-record date), and possibly commissions one (or both) ways. Lastly, a risk of the product trading at more (or less) than NAV by a cent or two.

I can make far more money just being in dividend paying common equities and leaving my cash reserve in an ISA or MMF.  

For me , I am way ahead in gains being in MMF/ HISA ETFs. ISAs and MMFs takes days to liquidate before funds are available. So it does not meet my criteria. I also have dividend paying stocks in my swing trade and buy and hold portfolio.

In terms of commissions , it's a mute point for me since I use NBDB, one of the comission free brokerages. Regarding the rest that comes down to the skill of trading. There is no replacement for experience.

These ETF's are affected by interest rates just like daily bank accounts and GICs. I do notice the diminshing returns in these ETFs for the last 8 months. Once they no longer work for me , I will change and adapt.

An easy solution to listing these ETFs are to query a search with this criteria at
an accessible ETF screener, create a link and post it .

AltaRed said
Regarding underlined portion, Cash ETFs have the same T+1 settlement time as MMFs and ISAs, with the primary difference being 'mutual fund' orders must be placed before 2pm or so EDT rather than being tradeable to the end of the stock exchange trading day of 4pm.

The other difference potentially with some brokerages is the funds from a 'sell' order may not be able to be used until the MMF or ISA is 'contracted' at the COB instead of instantaneously with Cash ETFs during the trading day... which translates to effectively a T+2 settlement. I am not aware of brokerages that would operate that way, but regardless, that is likely only important if one is truly a day trader buying and selling each day.  

Although The ETF's , ISA, MMFs have the same settlement terms, they are not equal . ISA , MMF Funds do not transfer back into your trading account until after clearing the T+1 which means the trading day, the next full day and then its placed in your account another day after, only then available for redeployment. This does not include weekends , holidays. This could add 3 or more days for accessibility to your funds.
The ETF funds are placed in your trading account immediately after being sold and can be redeployed immediately since most other stocks , ETFs are also T+1. It's basically a wash.

StackExchange said
Just like our HISA and GIC charts, please chart ETFs denominated in USD trading on Canadian exchanges (on a separate page)? Examples are HISU, HSUV, PSU, UCSH, UMNY.U.

I'm NOT asking for USD ETFs trading on American exchanges.  

I wouldn't recommend it. HISA ETFs have less utility now as compared to Investment Savings Accounts.

They also wouldn't meet the criteria as they're not held directly in one's own name. HISA ETFs are held by the fund, through the custodian. ISAs are held through your brokerage firm and, in turn, through Canadian Depository for Securities.

If your brokerage firm doesn't support HISA ETFs, I recommend switching to a brokerage firm that supports ISAs, or just using Wealthsimple Cash.

Cheers,
Doug