High Interest Cash ETFs (< 4.96%) [CAD/USD] [CDIC: NO!] + Money Market ETFs

X360 wrote: ↑ Usually, these CASH ETFs price are very closed to the NAV.
When you see 3 cents spread vs NAV then probably you see it on Friday before the weekend as the price expected to have few more cents accounted for Saturday, Sunday 2 days interest.

frugal1 wrote: ↑ I just updated the thread summary to reflect new yield for PSA. The net yield is now 4.84%.

frugal1 wrote: ↑ I just updated the thread summary to reflect new yield for PSA. The net yield is now 4.84%.

nicoco3000 wrote: ↑ Well i bought a few on monday and the spread wasnt really good. Anyway i bought only a few shares so it was ok to pay the sell price. If by 15h30 nobody sold to me, i buy at the sell price :-/

nicoco3000 wrote: ↑ Hope you like your .25

oakcan wrote: ↑ HISA too. Yield of 4.99% - 0.15% effective 2023-01-26

frugal1 wrote: ↑ I just updated the thread summary to reflect new yield for PSA. The net yield is now 4.84%.

frugal1 wrote: ↑ I just updated the thread summary to reflect new yield for PSA. The net yield is now 4.84%.

frugal1 wrote: ↑ It's the yield going forward and not a reflection of past distributions.

frugal1 wrote: ↑ No problem.

By the way, I just updated the summary to change "Gross Yield" to "Distribution Yield" for the two money market funds that are listed. The "Distribution Yield" that is posted on the respective websites is net of fees and expenses. It's the equivalent to the net yield for the other ETFs. So in order to do a proper comparison for CRM and CASH, for example, you simply look at the distribution yield for CRM (4.79%), but you need to take the gross yield of CASH and subtract it by its MER (4.78% - 0.13% = 4.65%).

nicoco3000 wrote: ↑ PSA doesnt disappoint. They added the full 0,25%. I still wonder if tomorrow we will have a 10$ share price instead of 50$.

Kaplano wrote: ↑ What are the implications of this? Do you know? I'm still trying to figure this out. Apparently it's all pretty normal but I don't really understand how it works. Apparently the NAV will remain fixed at $10.00 and the interest will simply be paid out on the payment date.

RoadRunner wrote: ↑ I didn't use past distributions. I took the latest distribution and projected it forward for 12 months. This resulted in 4.10%

dealhawk1 wrote: ↑ I was a victim of the same math as you but my friend X360 told us that it has to do with the number of days between ex dividend each month. Its different each month for each ETF.

wayneg9999 wrote: ↑ I was trying to calculate, is it worth it to actually buy on ex-dividend date at 50.01 (lose 1 cent), and sell at day before ex dividend date (lose another cent) each month, add in your trading commission costs, to earn Capital gain each month instead of taxable income?

Let's assume $100,000 (2000 shares of PSA) in your taxable account:

Assuming PSA distribution this month (0.17 yield)

Interest earned 0.17 * 2000 = $340
Lose 2 cents = $40; lose commission = $20

net gain = $280 capital gain @ 15% taxable = $242

whereas holding = $340 income @ 40% taxable = $204 (could be lower taxable in each case)

It's actually not much difference holding it unless you have a much larger sum in these ETFs.

dealhawk1 wrote: ↑ I was a victim of the same math as you but my friend X360 told us that it has to do with the number of days between ex dividend each month. Its different each month for each ETF.

RoadRunner wrote: ↑ I have since learnt that the gross yield is not tied to distributions. The fund earns interest at the overnight bank rate which, as of today, is 4.5% plus a yield premium of 0.49%. This gives a gross yield of 4.99%. Waiting to find out if the 0.49% is a yield premium that is fixed by agreement with the deposit banks or subject to change .