Purpose High Interest Savings (PSA.TO)

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.