Horizons Cash Maximizer ETF (HSAV) | Investing | Discussion forum

Strider, I found your second link very interesting. I didn't know how to find funds/etfs with no distribution (not that I've been too actively researching) and the info indicates "total return" instruments might do that trick, so now I have some idea where to look - thanks!

Thanks Strider, I did find that CCP blog info when I went looking. HULC & HXCN might be worth a closer look for me.

My situation is I don't want more income, I'd prefer to find some investments that pay no income, no distributions, just have chance of capital appreciation, but I don't want to spend time finding and following individual growth stocks that don't pay dividends, preferably want to find funds or other instruments that do it for me. Anyone's suggestions are welcome!

Dividends are tax free only if received by a connected corporation. To be a connected corporation, the corporation has to control over 10% of the paying corporation.

Capital gains dividends are not the same as capital dividends.

Capital gains dividends are most certainly taxable.

Capital dividends are tax free. Capital dividends can only originate from certain private corporations. Shares of the Horizon ETF mutual fund corporation trade publicly. Consequently, the mutual fund corporation is not a private corporation.

Also, the deduction for the MER each year can only be used once. If the MER deduction of one share class is used to shield the income of another share class, then the former share class will be paying more tax that year or in a later year.

That's okay if a shareholder owns shares of both classes. But, not so great if one only owns shares in the former class.

Plus taking account of the costs of acquisition and disposition, if any, of HSAV. That depends on the brokerage, and of course, the ability to spread any cost over the size of the holding. It makes little sense, for example, to buy $30k of HSAV @ $10 commission and then sell it a year later for another $10 commission. One has just reduced their cap gains from $210 (assuming 0.7% yield) to $190 for an effective yield of 0.63%.

Added: It goes without saying though that it would make sense with either higher amounts held for a suitable length of time or a 'no brainer' if one is with a 'zero commission' discount brokerage.

It depends on ones MTR and that should have been a qualifier.

Using the Motive example, with a 30% MTR, one would keep 77 cents out of interest yield of 1.1% (1.1@70%), while one would keep only 62 cents out of capital gains (0.73@85%). HSAV gross yield as of June 30 at 0.73% and capital gains inclusion rate of 50%.

However, with a 50% MTR, one would keep 55 cents out of interest yield of 1.1
% while in a capital gain situation, one would keep 55 cents (0.73@75%). Equivalence is at a 50% MTR.

Lastly, I have not done any qualifying work on what Horizon's definition of "gross yield" is. Morningstar data does not necessarily jive with Horizons yield. As of Oct 29, return performance of HSAV is 0.54% YTD, or 0.66% 12 months. Perhaps gross yield is BEFORE management fee of 0.08%.

FWIW, I've never found using the 'cash' ETFs to be anything more than an item of curiosity. My HISA balances vary each month AND both of my discount brokerages have $10 commissions. I will stick with EQ Bank and LBC Digital as my two HISA institutions.

One advantage of HSAV is that it is held at a broker, giving one flexibility to act on an opportunity faster. For this you give up some yield.
The big banks for sure won't offer to Horizons the same 1.1-1.5% rates of HISA for individuals. I think it's a toss up if it is better for the optionality. Liquidity seems so-so but not great. I tried for a week to buy at the bid and never hit. So I took the ask. Infuriating, but suggests liquidity is tightly controlled.

However there is a note in the prospectus which is potentially very lucrative.
It says that they may suspend redemptions if the size of the ETF gets to some size. If that happens, they say it will trade well above NAV.
I suspect IF interest rates eventually rise and people start piling into cash funds and HISA accounts to get higher yields that this could happen. Will it trade well above NAV? who knows.

If anyone knows a Canadian ETF with duration of less than 1 year , preferably 6 months, yielding over 1%, all ears )

Hello,

does anybody know with which Canadian Chartered Banks HSAV helds is money in Saving Accounts? Couldn't find anything in their FS and Reports.

Any idea how the use Swaps in HSAV?

Thanks,
F