So glad I saw this video. I had no idea these existed and it's a great place to store our safety net funds! One question for HSAV, since interest is reinvested into the fund, is there anything that can cause the price to drip rapidly (ie, interest rate decline, mass sales by large stakeholders, etc?)
20:30 Great info . I was totally unaware of these instruments . Will be looking at both as they offer a valuable option to bonds in this volatile market .
I just found CASH a week ago, and here I find a review of it…I have to ask myself why I have a savings account with my bank and not a position in CASH in my TFSA.
what a timing video. i have lots of cash on the side which i was thinking to put into GIC but now I have 2 great options thanks to your video. loved it. keep up the awesome work.
My understanding: Horizons' CASH can be held in an RRSP; it is possible to buy or sell units anytime during market hours like other ETFs; distributions are paid monthly and are not taxed in a registered account - only withdrawals would be taxed accordingly. Are there any other caveats or consequences of holding and selling this ticker in an RRSP (other than the lack of CDIC)? Thanks
great video...if i put this in a tfsa for a year or two does it count towards the max i can put in a tfsa..im a new investing and if my tfsa is maxed what other account can i put it in?..thanks
Thanks for this info, I had not heard of these. Please increase your output volume in your videos. It is very hard to hear your voice even with the volume cranked up.
Thanks for this..I have been looking at PSA through Purpose as an option for my cash. Any thoughts on it? I feel it is similar to the first fund you spoke to.
@@KASPA-KEY Volume is kind of irrelevant. If you want to buy, units are generated and money is placed in HISA. If you want to sell, money is pulled from HISA. There is never really going to be liquidity issues here. PSA is virtually the same ETF, except Purpose charges extra management fees.
Does the payout get re-invested automatically ? Or doe the payout just goto your cash portion of your account ? don't really want to have to check everyone month to put it back in.
Great video, but can you explain what HSAV means by this: "TORONTO - February 3, 2022 - Horizons ETFs Management (Canada) Inc. (“Horizons ETFs” or the “Manager”) is announcing the suspension of new subscriptions to the Horizons Cash Maximizer ETF (“HSAV” or the “ETF”), effective at the close of business today, February 3, 2022. The suspension of new subscriptions follows HSAV reaching approximately $2.0 billion in net asset value (“NAV”), as of February 3, 2022." I just don't get what they mean about no more new subsciptions, does that mean over 2 billion in net asset value, you can't invest in this ETF? If so, I guess that I would have choice to park in $CASH unless there is another substitute to HSAV.
You can still buy HSAV but it will be at a premium to NAV. You kind of have to weigh your situation to see if it is beneficial to pay a bit more for HSAV or to buy CASH. Hard for me to give direct indication of what to do
@@StocktradesLtd ok keep me updated pls on their website says Horizons Cash Maximizer ETF Suspends New Subscriptions After Reaching Approximately $2 Billion in Assets.
Sorry, let me try asking again, so many typos last time. I was wondering what do you think of buying HSAV today, despite its subscriptions being suspended? For example, today's premium was about 0.58% above NAV, and from my quick math, it seems like you'd get back the premium paid in about a 1 to 1.5 months in growth - the interest/dividends paid out within the ETF. That seems like it'd be fine if rates maintain. Is it worth getting HSAV today for the tax-efficiency, or does it trading above NAV complicate it. What do you think?
How can I buy these when most of the major banks don't sell them? Can I put CASH inside my RSSP to defer tax? What about inside a TFSA..which is best? Nice video. Thanks,
Unfortunately if the big banks don't offer them, you can't buy them. I find very little advantage to any big bank brokerage besides convenience really. I'm not sure how they're keeping clients these days on the brokerage front besides maybe National Bank which has commission free trades (and they offer these funds to buy). You can put them inside tax sheltered accounts yes.
Great video. If one were to put this in their Childs RRSP would it be best to stick with the CASH vehicle over the HSAV for long term hold? Also is there a high interest ETF following the USD but purchased with CAD? From what I understand the HSUV is USD>CAD. Is it prudent to buy cash at the first of the month when the ETF is around 50$ following a 20c dip. Thanks.
Doesn't really matter when you bought it. If you bought CASH at the start of the month, you'd accumulate 20c over a month. If you bought it halfway through, you'd accumulate 10c over half a month. Same thing. HSAV is tricky right now due to NAV premium. Holding long term however does reduce the risk of the fund trading at a premium to NAV.
This is much needed content, couldn't find hardly anything when i was looking into these ETFs. I love getting this kind of yield on my liquid cash position in my tfsa.
In CASH or HSAV, you are exposed to savings deposit accounts at the big banks, and the only way you'd lose your money is in the event of insolvency. With HMAX, you are exposed to general market movement, earnings of the banks etc
I thought I commented on this post a while ago. Good fund for now, but it should be known new shares of HSAV have stopped. So it is bound to act more randomly, and has been versus GICs and Cash. I'm guessing not an interest rate increase equal to dividends. But it depends on the fund. Just like anything, buy low, sell high. Even in these cash ones.
In theory if the banks that hold the underlying savings accounts (National Bank, CIBC etc) go insolvent you would lose your capital yes. Up to the investor to weigh the odds of this
Thank you, really interesting idea. I found this video while I was going to invest in a 1 year GIC. So, with the new year and new TFSA contribution limit, could we place say $5000 of CASH.to into a broker (lets say WealthSimple because they're commission free). And just keep that amount there while building monthly div. and just sell when you're ready to buy a stock? So if you buy each month (dollar coast average over 2023) then this would be a better alternative then leaving it in the bank? Is it too good to be true?
Thank you for the video. something confuses me though, why HSAV has dropped from 107 to 105 since a month ago? isnt this one always growing because of interests reinvesting? thanks!
Great video. Unfortunately, you're right about not being able to buy these through TD Webbroker. I can't find a similar TD Cash ETF. Anyone find an option that works at TD?
TD Investment Savings Account (TDMC) TDB8155 purchased through TD Waterhouse. No fees to buy or sell nor are there any MER fees. Positions are liquid as long as market is open. Currently has a 4.05% as of today. I think it went up sometime in January from 3.80%. Was 3.4% around July so. They have a F series version at 4.20% but I think the minimum $ is much higher?? Perhaps 100K They also have a US currency version at 3.90%
@StocktradesLtd I'm new to these types etfs/investing, but isn't it best to get more data on how they perform before going out and purchasing? For Eg, don't you want at least 5 years of data to look at the trends over time? Or are these meant to be used in high inflationary/interest times similarly to a covered call etf?
Read about these on the globe, I forgot to look into them. Great video. One caveat is they don't provide CDIC coverage? Also the big banks won't let you buy it on their trading platforms. (As a lifelong Credit Union user, I don't know why people go to banks and pay them money...)
Nothing against Wealthsimple Trade. Commissions are just such a small impact to my portfolio that I really can't be bothered to switch from a brokerage with a lot of features in Qtrade to a no frills one in WS Trade.
Just an update regarding HSAV. New subscriptions HAVE been stopped, and you have to watch the NAV if you're looking to buy: horizonsetfs.com/horizons-cash-maximizer-etf-suspends-new-subscriptions-after-reaching-approximately-2-billion-in-assets/
@@StocktradesLtd so I'm not quite sure if I'm following. Can't I just go on questrade and buy it from someone who's willing to sell it? Does this mean I need to go directly to horizons if I want to buy HSAV?
@@ToroMoto you can go to questrade and buy it from someone yes but it trades at a premium to the net asset value of the ETF. Meaning you could potentially buy it for a premium and only be able to sell it at NAV. Typically, when an ETF is still issuing new units like this when you buy it they just create new units and your money is deposited in the savings accounts. Now that there is a suspension of new units, the popularity of the fund may drive premiums to NAV higher.
@@StocktradesLtd okay thanks. So first question, if I buy it at a premium couldn't I also sell it at a premium later making the premium cancel out? Also how can I determine the NAV, so that I can see what the current premiums are?
Again, it's the liquidity factor. If you have a cash position waiting to deploy in the market, a savings account for a vehicle you want to buy in 6 months, a mortgage down payment you need in 6 months etc, 1 year GIC's aren't feasible.
@@StocktradesLtd cashable 1-2 years are avaailable. 4.6% at maturity. 3.75-4% after 6 months. Whatever worx as long as ithe money loses value at slower pace.
I've been looking at CASH & HSAV for a couple weeks now. Tempted to move my TFSA cash from my savings to the CASH ETF. HSAV has like 2B in the fund and actually suspended further subscriptions. CASH has around 1B in the fund which is nuts. My big issue is if the base price of CASH ever goes down below $50, like from a bank run. Also no CDIC coverage is another negative for me. Too bad all the big banks are only paying like 1.3% on high-interest savings accounts. Credit Unions seem to be paying 2% to 3%.
I also wonder about this from the Horizon's website "However, investors and potential investors should note that during a period of suspended subscriptions, the Manager expects shares of HSAV to trade at a premium to its NAV per share. Due to this expected premium, Horizons ETFs is strongly discouraging purchases of shares of HSAV during this suspension of subscriptions."
Bro, why even promote this? Why not just promote wealth simple and their high interest savings account that you don't need a minimum balance and you can just withdraw anytime you want
Going to add $CASH to my Wealthsimple TFSA. Good video!
So glad I saw this video. I had no idea these existed and it's a great place to store our safety net funds! One question for HSAV, since interest is reinvested into the fund, is there anything that can cause the price to drip rapidly (ie, interest rate decline, mass sales by large stakeholders, etc?)
20:30 Great info . I was totally unaware of these instruments . Will be looking at both as they offer a valuable option to bonds in this volatile market .
👍👍
what's the risk? can this drop majorly if it stops giving out a high yield and everyone starts selling?
I just found CASH a week ago, and here I find a review of it…I have to ask myself why I have a savings account with my bank and not a position in CASH in my TFSA.
Excellent video. Thanks.
👍
Was literally just looking at these but wasn't sure about the tax implications. Thanks for the informative video!!!
No problem. Make sure to read up on the subscription stoppage for HSAV.
Interesting, thank you!
Watched and liked, thanks!
Thank you!!
This is great information!
Thanks!!
Thanks for posting! I didn't know about this
No problem! I have a more recent one done a few weeks ago
Why did HSAV value droped at the end of the graph at 17:40 m time stamp ?
When you cash these ETF's, are they taxed 26.53% (Quebec's %) like the interests on GIC'S? Thank you
what a timing video. i have lots of cash on the side which i was thinking to put into GIC but now I have 2 great options thanks to your video. loved it. keep up the awesome work.
Glad I could help!
My understanding: Horizons' CASH can be held in an RRSP; it is possible to buy or sell units anytime during market hours like other ETFs; distributions are paid monthly and are not taxed in a registered account - only withdrawals would be taxed accordingly. Are there any other caveats or consequences of holding and selling this ticker in an RRSP (other than the lack of CDIC)? Thanks
Great video with clear infos.
National Bank Courtage Direct is where i buy and sell with no comission HSAV.
Are these HSAV ETF still available?
They are yes
great video...if i put this in a tfsa for a year or two does it count towards the max i can put in a tfsa..im a new investing and if my tfsa is maxed what other account can i put it in?..thanks
Growth in a TFSA does not count against what you can deposit into it.
Thanks for this info, I had not heard of these.
Please increase your output volume in your videos. It is very hard to hear your voice even with the volume cranked up.
Noted!
Thanks for this..I have been looking at PSA through Purpose as an option for my cash. Any thoughts on it? I feel it is similar to the first fund you spoke to.
Nearly identical fund yea
@@KASPA-KEY Volume is kind of irrelevant. If you want to buy, units are generated and money is placed in HISA. If you want to sell, money is pulled from HISA. There is never really going to be liquidity issues here. PSA is virtually the same ETF, except Purpose charges extra management fees.
Pretty good content.
Does the payout get re-invested automatically ? Or doe the payout just goto your cash portion of your account ? don't really want to have to check everyone month to put it back in.
With CASH it would not be reinvested
It seems to accurately go from around 50 to 50.14, couldnt someone just arbitrage that instead of holding it for the dividends?
You could sell day before ex dividend and buy back after yep
Sorry I don’t understand all … but if I hold Cash in TFSA … do i have to pay tax for its interest amount ?
It would be tax free in a tfsa
Great video, but can you explain what HSAV means by this:
"TORONTO - February 3, 2022 - Horizons ETFs Management (Canada) Inc. (“Horizons ETFs” or the “Manager”) is announcing the suspension of new subscriptions to the Horizons Cash Maximizer ETF (“HSAV” or the “ETF”), effective at the close of business today, February 3, 2022. The suspension of new subscriptions follows HSAV reaching approximately $2.0 billion in net asset value (“NAV”), as of February 3, 2022."
I just don't get what they mean about no more new subsciptions, does that mean over 2 billion in net asset value, you can't invest in this ETF?
If so, I guess that I would have choice to park in $CASH unless there is another substitute to HSAV.
You can still buy HSAV but it will be at a premium to NAV. You kind of have to weigh your situation to see if it is beneficial to pay a bit more for HSAV or to buy CASH. Hard for me to give direct indication of what to do
cash in IB also get 3.8% interest
So can we still buy hsav this year yes or no??
Will have to look into it. Apparently it's over subscribed, I didn't notice any of this on their website.
@@StocktradesLtd ok keep me updated pls on their website says Horizons Cash Maximizer ETF Suspends New Subscriptions After Reaching Approximately $2 Billion in Assets.
What do you think is better if hsav is not available cash or csav?
I called hsav you can still buy But you pay a premier of .27 cent today witch etf is better for non registered account hsav,csav or cash?
Sorry, let me try asking again, so many typos last time.
I was wondering what do you think of buying HSAV today, despite its subscriptions being suspended?
For example, today's premium was about 0.58% above NAV, and from my quick math, it seems like you'd get back the premium paid in about a 1 to 1.5 months in growth - the interest/dividends paid out within the ETF.
That seems like it'd be fine if rates maintain. Is it worth getting HSAV today for the tax-efficiency, or does it trading above NAV complicate it. What do you think?
How can I buy these when most of the major banks don't sell them?
Can I put CASH inside my RSSP to defer tax?
What about inside a TFSA..which is best?
Nice video.
Thanks,
Unfortunately if the big banks don't offer them, you can't buy them. I find very little advantage to any big bank brokerage besides convenience really. I'm not sure how they're keeping clients these days on the brokerage front besides maybe National Bank which has commission free trades (and they offer these funds to buy). You can put them inside tax sheltered accounts yes.
@@StocktradesLtd Thanks Dan.
What about 3rd party brokerages like Quest Trade?
Great video. If one were to put this in their Childs RRSP would it be best to stick with the CASH vehicle over the HSAV for long term hold? Also is there a high interest ETF following the USD but purchased with CAD? From what I understand the HSUV is USD>CAD. Is it prudent to buy cash at the first of the month when the ETF is around 50$ following a 20c dip. Thanks.
Doesn't really matter when you bought it. If you bought CASH at the start of the month, you'd accumulate 20c over a month. If you bought it halfway through, you'd accumulate 10c over half a month. Same thing. HSAV is tricky right now due to NAV premium. Holding long term however does reduce the risk of the fund trading at a premium to NAV.
Thank bud i was looking for this at the moment and boom you pop à New vidéo haha
Good timing 😄
Oh yes il go with hsav
Can you buy these cash ETF inside your TFSA which would mean no capital gain or interest to declare?
Yes you can. Because HSAV is currently shut down for new subscriptions, I'd probably lean towards CASH
This is much needed content, couldn't find hardly anything when i was looking into these ETFs. I love getting this kind of yield on my liquid cash position in my tfsa.
It's pretty amazing!!
When interest rates go down will you start to lose your money or only lose how much they pay you?
Only what is paid out in distributions from CASH
Another questions. If the biggest risk is the big banks, why wouldn't one invest in HMAX for 14% yield instead. Thanks a lot.
In CASH or HSAV, you are exposed to savings deposit accounts at the big banks, and the only way you'd lose your money is in the event of insolvency. With HMAX, you are exposed to general market movement, earnings of the banks etc
I thought I commented on this post a while ago. Good fund for now, but it should be known new shares of HSAV have stopped. So it is bound to act more randomly, and has been versus GICs and Cash. I'm guessing not an interest rate increase equal to dividends. But it depends on the fund. Just like anything, buy low, sell high. Even in these cash ones.
Any one know RBC direct investing offer these?
They don't no. It's unfortunate
Can you lose your principal with these etfs?
In theory if the banks that hold the underlying savings accounts (National Bank, CIBC etc) go insolvent you would lose your capital yes. Up to the investor to weigh the odds of this
Investors who hold a GIC most likely don’t like any risk. I’m not talking about myself
Thank you, really interesting idea. I found this video while I was going to invest in a 1 year GIC. So, with the new year and new TFSA contribution limit, could we place say $5000 of CASH.to into a broker (lets say WealthSimple because they're commission free). And just keep that amount there while building monthly div. and just sell when you're ready to buy a stock? So if you buy each month (dollar coast average over 2023) then this would be a better alternative then leaving it in the bank? Is it too good to be true?
It's a great place to park cash yup
Thank you for the video. something confuses me though, why HSAV has dropped from 107 to 105 since a month ago? isnt this one always growing because of interests reinvesting? thanks!
I have a new video on this. Check out the channel. I made it a few weeks ago I believe
Could the price of CASH go down ? or it’s fix price ?
You'll see the price gradually rise and then drop when it pays its distribution.
@@StocktradesLtd thank you 🙏
Great video. Unfortunately, you're right about not being able to buy these through TD Webbroker. I can't find a similar TD Cash ETF. Anyone find an option that works at TD?
TD Investment Savings Account (TDMC) TDB8155 purchased through TD Waterhouse. No fees to buy or sell nor are there any MER fees. Positions are liquid as long as market is open. Currently has a 4.05% as of today. I think it went up sometime in January from 3.80%. Was 3.4% around July so. They have a F series version at 4.20% but I think the minimum $ is much higher?? Perhaps 100K
They also have a US currency version at 3.90%
Search under high interest savings account in your TD Waterhouse account and you'll find more info on this and some other companies which are lower
@@cro38363 Thanks. Found it.
@@tomtimmerman2810 I can't see the replies here?
TD wants you to use their money market Fund. It is a vehicle that moves with the interest rates.
These ETFs are available on Scotia iTrade.......I'm presently holding CASH....as you mentioned the liquidity is the best feature of these ETFs.
Nice! That's good to know.
Ummm money market funds are providing 5.25%
how do you find funds/stocks such as these? word of mouth? or are you always scouring these sites looking for new products?
A mix of both!
@StocktradesLtd I'm new to these types etfs/investing, but isn't it best to get more data on how they perform before going out and purchasing? For Eg, don't you want at least 5 years of data to look at the trends over time? Or are these meant to be used in high inflationary/interest times similarly to a covered call etf?
Big banks hate this one simple ETF
Absolutely
Read about these on the globe, I forgot to look into them. Great video.
One caveat is they don't provide CDIC coverage? Also the big banks won't let you buy it on their trading platforms. (As a lifelong Credit Union user, I don't know why people go to banks and pay them money...)
Paying fees for a chequing account is so last century lol. There's places like Simplii, Tangerine, and EQ Bank that provide no-fee accounts.
The CDIC is relatively small risk. Unless you believe the banks will go insolvent
Well said. Why do you use qtrade for tsx stocks? Why not Wealthsimple trade?
Nothing against Wealthsimple Trade. Commissions are just such a small impact to my portfolio that I really can't be bothered to switch from a brokerage with a lot of features in Qtrade to a no frills one in WS Trade.
Is this relevant today?
These funds still exist yep. I even own a bit of HSAV
Just an update regarding HSAV. New subscriptions HAVE been stopped, and you have to watch the NAV if you're looking to buy: horizonsetfs.com/horizons-cash-maximizer-etf-suspends-new-subscriptions-after-reaching-approximately-2-billion-in-assets/
What does "new subscriptions" mean?
@@ToroMoto new units of the ETF.
@@StocktradesLtd so I'm not quite sure if I'm following. Can't I just go on questrade and buy it from someone who's willing to sell it?
Does this mean I need to go directly to horizons if I want to buy HSAV?
@@ToroMoto you can go to questrade and buy it from someone yes but it trades at a premium to the net asset value of the ETF. Meaning you could potentially buy it for a premium and only be able to sell it at NAV.
Typically, when an ETF is still issuing new units like this when you buy it they just create new units and your money is deposited in the savings accounts. Now that there is a suspension of new units, the popularity of the fund may drive premiums to NAV higher.
@@StocktradesLtd okay thanks. So first question, if I buy it at a premium couldn't I also sell it at a premium later making the premium cancel out?
Also how can I determine the NAV, so that I can see what the current premiums are?
Can you make any suggestions for people trading with TD?
I think they have some high interest savings funds that are like 3.25%
See my earlier reply to another individual this morning
TD Investment Savings Account (TDMC)
TDB8155
you can get over 5% on 1 year GIC with monthly pay. Simple enough for me, supplements my dividend stocks.
Again, it's the liquidity factor. If you have a cash position waiting to deploy in the market, a savings account for a vehicle you want to buy in 6 months, a mortgage down payment you need in 6 months etc, 1 year GIC's aren't feasible.
@@StocktradesLtd cashable 1-2 years are avaailable. 4.6% at maturity. 3.75-4% after 6 months. Whatever worx as long as ithe money loses value at slower pace.
I've been looking at CASH & HSAV for a couple weeks now. Tempted to move my TFSA cash from my savings to the CASH ETF. HSAV has like 2B in the fund and actually suspended further subscriptions. CASH has around 1B in the fund which is nuts. My big issue is if the base price of CASH ever goes down below $50, like from a bank run. Also no CDIC coverage is another negative for me. Too bad all the big banks are only paying like 1.3% on high-interest savings accounts. Credit Unions seem to be paying 2% to 3%.
Can we still buy hsav? On questrade
I also wonder about this from the Horizon's website "However, investors and potential investors should note that during a period of suspended subscriptions, the Manager expects shares of HSAV to trade at a premium to its NAV per share. Due to this expected premium, Horizons ETFs is strongly discouraging purchases of shares of HSAV during this suspension of subscriptions."
Yeah it's trading at what looks to be a 27 cent, or around 0.25% Premium to NAV at the time I'm writing this comment.
I perfer CSAV as it seems more stable then CASH that took a sudden drop for a day last month.
im pretty sure any bank can let you invest in it.
Bro, why even promote this? Why not just promote wealth simple and their high interest savings account that you don't need a minimum balance and you can just withdraw anytime you want
4% is not great
I'm curious where you're getting absolutely risk free returns with complete liquidity greater than 4%?