For clients who wish to avoid losses, a high interest savings ETF might be a good option.
What is it?
Think of it as fund that purchases savings accounts across Canada. Unlike GICs, there is no minimum holding period and it is liquid, meaning that it can be sold anytime. More importantly, it can also be held within an RRSP, TFSA, or any registered account. You can find the yield (or the interest it pays) and more information about the fund here.
When should I invest a high interest savings ETF?
It is ideal for clients who plan to withdraw the majority of their funds from a particular account in the near term - generally within the next 3 years. For example, a high interest savings ETF is a good choice if you're planning to use your RRSP for a homebuyer's plan or need the funds in your RESP to fund your children's education.
Can I also invest in this ETF in a non-registered (personal) account?
You can. But our Cash account pays more interest. If you'd like to move any non-registered funds to a risk-free investment, you can move them to your Cash account. If you don't already have a Cash account, click here to open one. Once opened, or if you already have one, you can simply transfer the funds to it using the funding tab.
What are the fees on this ETF?
We charge the same management fee regardless of what you're invested in. This is to ensure that we're not incentivized to recommend one portfolio over another. In other words, we'll always recommend the best portfolio for your situation. You can learn more about our management fees here.