HISA ETFs might not be dead yet | Wealth Professional

Q: Is a Hisa ETF a good investment?

At least one advisor agrees. Evan Riddell CFP, lead at Riddell Private Wealth Management, part of IG Private Wealth Management, and one of the Best Financial Advisors in Western Canada, says the decision actually makes HISA ETFs more attractive in his eyes.

Q: Will Hisa ETFs pay a lower yield?

Banks had largely maintained a 40% runoff rate on HISA assets before this ruling. By mandating a 100% liquidity requirement it is expected that these ETFs will pay a lower yield.

Q: Should Hisa ETFs be clarified?

“Clarification on the treatment of HISA ETFs will help ensure risks are managed appropriately,” said Peter Routledge, Superintendent of Financial Institutions.

Q: Are Hisa ETFs still viable in 2023?

The OSFI ruling provided regulatory clarity on these ETFs and confirmed their ongoing viability,” says Rohit Mehta, President & CEO of Horizons ETFs. “In 2023, the Money Market fixed income category saw more than $9.3 billion dollars of in-flows, most of which were to HISA ETFs. That’s nearly 25% of all flows last year.

Q: How risky is a Hisa ETF?

The yield is considered capital gains (much like interest income) The Funds are not CDIC insured, which is the only real risk. Since these are ETFs, there may be a risk of Horizons, Evolve, or another HISA ETF company failing. Liquidity, based on the ETF it might take a little bit more time to withdraw with a 1-2 cents per share loss.

Q: How do Hisa ETFs work?

HISA ETFs invest money into a number of different high-interest savings accounts that earn interest which is paid back to investors. Most HISA ETFs aim to keep their share prices stable, and pay interest to investors as a monthly dividend. Depending on your strategy, you can choose to reinvest your dividends or withdraw them as cash.

Nov 1, 2023 · Evan Riddell CFP, lead at Riddell Private Wealth Management, part of IG Private Wealth Management, and one of the Best Financial Advisors in Western Canada, says the …

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OSFI Mandates 100% Liquidity For HISA ETFs | Wealth Professional …

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The Office of the Superintendent of Financial Institutions (OSFI) has mandated a 100% liquidity requirement for high interest savings account (HISA) ETFs, effective from January 31, 2024.

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Steve Bentley BA CFP On LinkedIn: HISA ETFs Might Not Be Dead Yet

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"The Office of the Superintendent of Financial Institutions (OSFI) announced yesterday they would be upholding a 100% liquidity requirement for high interest savings account (HISA) ETFs.

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Why Horizons Launched A USD HISA ETF As 100% ... - Wealth …

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Jan 31, 2024 · As a result, yields on HISA ETFs have fallen by between 35 and 45 basis points since the OSFI ruling was made. Naseem Husain, senior VP and ETF strategist at Horizons …

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HISA ETFs Now Subject To Stricter Liquidity Rules | Advisor.ca

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Oct 31, 2023 · Money-market ETFs had $3.1 billion in AUM on Sept. 30, per NBF. Mark Noble, senior vice-president of retail strategy with Guardian Capital LP — which released two short …

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High Interest Cash/MM ETFs (< 4.96%) [CAD/USD] [CDIC: NO!], …

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Aug 6, 2024 · The yields of HISA ETFs averaged 1.45 per cent in May and have doubled to about 3 per cent. Traditional high-interest CDIC-insured savings accounts currently pay 2 per cent to …

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Another HISA (PSA, 3.19%) Thread - Thoughts, Experiences?

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Dec 12, 2022 · Wealthsimple uses the Purpose High-Interest Savings ETF (trading as PSA) as our high-interest savings ETF. -- My email discourse currently reads that your money here …

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Advisors Anticipate Fallout From 0% Interest Rate | Wealth …

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Apr 13, 2015 · Getting fixed-income planning right may be the biggest challenge – and responsibility – for advisors if the prediction of a zero per cent overnight rate comes true.

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FAQs about HISA ETFs might not be dead yet | Wealth Professional Coupon?

Is a Hisa ETF a good investment?

At least one advisor agrees. Evan Riddell CFP, lead at Riddell Private Wealth Management, part of IG Private Wealth Management, and one of the Best Financial Advisors in Western Canada, says the decision actually makes HISA ETFs more attractive in his eyes. ...

Will Hisa ETFs pay a lower yield?

Banks had largely maintained a 40% runoff rate on HISA assets before this ruling. By mandating a 100% liquidity requirement it is expected that these ETFs will pay a lower yield. ...

Should Hisa ETFs be clarified?

“Clarification on the treatment of HISA ETFs will help ensure risks are managed appropriately,” said Peter Routledge, Superintendent of Financial Institutions. ...

Are Hisa ETFs still viable in 2023?

The OSFI ruling provided regulatory clarity on these ETFs and confirmed their ongoing viability,” says Rohit Mehta, President & CEO of Horizons ETFs. “In 2023, the Money Market fixed income category saw more than $9.3 billion dollars of in-flows, most of which were to HISA ETFs. That’s nearly 25% of all flows last year. ...

How risky is a Hisa ETF?

The yield is considered capital gains (much like interest income) The Funds are not CDIC insured, which is the only real risk. Since these are ETFs, there may be a risk of Horizons, Evolve, or another HISA ETF company failing. Liquidity, based on the ETF it might take a little bit more time to withdraw with a 1-2 cents per share loss. ...

How do Hisa ETFs work?

HISA ETFs invest money into a number of different high-interest savings accounts that earn interest which is paid back to investors. Most HISA ETFs aim to keep their share prices stable, and pay interest to investors as a monthly dividend. Depending on your strategy, you can choose to reinvest your dividends or withdraw them as cash. ...