Wealthsimple Invest is designed to automatically invest any funds you add to an investment account. Unlike Wealthsimple Trade, this means you aren't able to hold a cash balance in your Invest TFSA, RRSP, or RESP.
However, there may be times when you want to reduce your exposure to market forces and avoid any losses. In this case, moving your funds to a high-interest savings ETF might be a good choice.
A high-interest savings ETF is like a money market fund that purchases savings accounts across Canada. Unlike guaranteed investment certificates (GICs), there is no minimum holding period and you can access your funds at any time.
Wealthsimple uses the Purpose High-Interest Savings ETF (trading as PSA) as our high-interest savings ETF.
If you wish to invest your TFSA, RRSP, or RESP in a high-interest savings ETF, please contact our support team. They will help you get in touch with one of our Portfolio Managers to make this change for you.
Frequently asked questions
- What are the fees for investing in PSA?
Our standard fees apply. Wealthsimple’s standard management fee is 0.5%. For accounts over $100,000, this fee drops down to 0.4%. To learn more about fees, click here.
- What kind of interest does PSA pay?
You can find the yield (or the interest it pays) and more information about the fund here.
- Can I also invest in this ETF in a non-registered (personal) account?
Yes. However, our Save account pays more interest and does not have any fees. If you'd like to move any non-registered funds to a risk-free investment, consider moving them to a Save account.
- Why does PSA decrease in value at the end of each month?
The price of PSA goes up throughout each month as the fund earns interest on their holdings. At the end of the month, PSA takes the interest it has earned and issues it to shareholders as a dividend. This makes the value of the fund dip, however the dip is offset with an interest payment once the dividend arrives in your account
This results in a predictable decrease in the price of PSA each month, which you can see reflected on this chart.
- When are dividends paid out by PSA?
You'll receive your monthly dividend as a cash payment a week or so after the dividend payment date set by PSA.