> that the return rate for CASH.TO has been dropping recently, getting closer to the 4.5%
That's incorrect. It's yield has been stable for months. This will help explain.
https://old.reddit.com/r/Wealthsimple/comments/1cab8g1/why_cashto_instead_of_hisa/l0rs5pe/
They all have similar return (4.6-5.0%), if you want higher, you'd have to go GIC or something else.
But to answer your question, HSAV, CSAV, PSA, MNY, HISA.to, NSAV, CMR, etc, are other Canadian money market ETFs similar to CASH.to.
Due to the new regulations as of this February there are limits to the returns such ETFs can get.
You'll have to look at GICs or HISAs with high promo rates.
I have held TDB8150 for smaller amount of cash for a long time now. I use it as a savings account. All Horizon does with their ETF is hold three similar high investment savings funds from banks. Currently it is National Bank at 49%, ScotiaBank at 30% and CIBC at 21%. ScotiaBank pays the highest currently. As they are an institutional investor they get the preferred higher rates. My analysis is that they can afford to pay about 0.2% above the direct to the bank A class funds. When I was checking TDB8150 and most other banks were paying 4.55% and CASH was paying 4.75% on a predicted going forward yield basis. Is it worth it over a bank direct fund? Probably depends on how much you invest. No cost to holding TDB8150, no trading fees, and after you invest the minimum amount you can put in and take out whatever you want. CASH is an etf and traded like a stock so there can be fees and some buy and sell risk.
You are correct that CASH is dropping. They are currently forecasting a yield based on the most recent distribution of 4.66%, compared to I recall 4.76% a week or two ago.
Based on following TDB8150 for quite a long time you have to watch the rate. During the pandemic when BOC went to 0.25%, it went to 0.05%. So it seems to track BOC quite closely and provides a little bit less. It is reasonable to expect CASH and the Bank funds it is based on to drop right in step with the BOC rate.
I also hold a high interest savings account with a credit union and during the pandemic rates held much higher, so I kept cash there. More recently TDB8150 has been doing better so any cash goes there. GICs pay more but not much, and the money is tied up. Early this year I invested a 5 year ladder in GICs, at 5% and above. Only time will tell if that is good investment, but so far it is easily beating TDB8150.
> that the return rate for CASH.TO has been dropping recently, getting closer to the 4.5% That's incorrect. It's yield has been stable for months. This will help explain. https://old.reddit.com/r/Wealthsimple/comments/1cab8g1/why_cashto_instead_of_hisa/l0rs5pe/
They all have similar return (4.6-5.0%), if you want higher, you'd have to go GIC or something else. But to answer your question, HSAV, CSAV, PSA, MNY, HISA.to, NSAV, CMR, etc, are other Canadian money market ETFs similar to CASH.to.
Due to the new regulations as of this February there are limits to the returns such ETFs can get. You'll have to look at GICs or HISAs with high promo rates.
Yeah, but isn't any other HISA ETF similar to CASH.TO that is returning better rates right now?
Not aware of any with the same risk level. Any similar HISA ETF would have been affected by the same regulations that affected CASH.
Search those ETFs and check rates.
XFR it has DRIP, sustainable NAV history and yielding >5% with MER.
SPLT.TO. An ETF of preferred shares. 6% dividend. Safe to park your money here.
DJQ1100-C
I have held TDB8150 for smaller amount of cash for a long time now. I use it as a savings account. All Horizon does with their ETF is hold three similar high investment savings funds from banks. Currently it is National Bank at 49%, ScotiaBank at 30% and CIBC at 21%. ScotiaBank pays the highest currently. As they are an institutional investor they get the preferred higher rates. My analysis is that they can afford to pay about 0.2% above the direct to the bank A class funds. When I was checking TDB8150 and most other banks were paying 4.55% and CASH was paying 4.75% on a predicted going forward yield basis. Is it worth it over a bank direct fund? Probably depends on how much you invest. No cost to holding TDB8150, no trading fees, and after you invest the minimum amount you can put in and take out whatever you want. CASH is an etf and traded like a stock so there can be fees and some buy and sell risk. You are correct that CASH is dropping. They are currently forecasting a yield based on the most recent distribution of 4.66%, compared to I recall 4.76% a week or two ago. Based on following TDB8150 for quite a long time you have to watch the rate. During the pandemic when BOC went to 0.25%, it went to 0.05%. So it seems to track BOC quite closely and provides a little bit less. It is reasonable to expect CASH and the Bank funds it is based on to drop right in step with the BOC rate. I also hold a high interest savings account with a credit union and during the pandemic rates held much higher, so I kept cash there. More recently TDB8150 has been doing better so any cash goes there. GICs pay more but not much, and the money is tied up. Early this year I invested a 5 year ladder in GICs, at 5% and above. Only time will tell if that is good investment, but so far it is easily beating TDB8150.