Purpose High Interest Savings (PSA.TO)

It was a previous past pick. You sit in cash and look for opportunities.

Purpose High Interest Savings ETF. During the summer, you want to reduce beta in your portfolio. You want to be less cyclically exposed. Since he is a bit concerned about the direction of rates, he is going for this one. All this is, is a 1% rate of return. You don’t have restrictions that would be imposed by the other high interest savings accounts. It is really just a place to park cash for the summer time.

See the Globe today. It is a savings vehicle and gives you higher than cash and money market.

They have secured high interest savings accounts with various institutions. They have generated a pretty decent yield and turned it into an ETF yielding about 1%. It is pretty good yield for a money market.

(Top Pick Jan 13/17, Up 0.20%) Cash is important in today’s environment. PSA-T behaves just like cash. It is like a money market fund.

If you showed a graph, you would almost see a flat line. It doesn’t mean that the patient is dead. It is basically an ETF that holds Cash. Pays about 1%. If you are very tax sensitive and you don’t like premium bonds, but want a cash like exposure in an ETF form, this is a way to do it.

(A Top Pick Aug 10/16. Up 0.31%.) During the period of volatility for equity markets, which really peaks between August and October, you want to be defensive. He saw this turn around in July where it indicated bond prices were coming off, so he rotated into this, which is simply a high interest savings account.

All this does is to invest in high interest deposit accounts. It is a constant steady stream of income. He hates recommending cash, but this is essentially a place to park your cash during the summer. You will at least get your 1% annual income.