psa etf

Full review of PSA ETF: Purpose High Interest Savings Fund

In today’s fast-paced and ever-changing financial landscape, finding opportunities to grow your savings while minimizing risk can be a challenge. However, for Canadian investors seeking a reliable and high-interest savings option, the Purpose High Interest Savings Fund (PSA ETF) offers a compelling solution. In this article, we will delve into the features and benefits of the PSA ETF, shedding light on its potential to optimize your savings strategy.

What’s a High interest savings ETF?

High interest savings ETF are financial instruments designed to give investors a means to save capital while earning a competitive interest rate. Furthermore, they can provide investors with better returns than typical savings accounts or money market funds (while maintaining a high level of liquidity and safety, one of their main benefits).

These ETFs are often seen as relatively low-risk investments, in contrast to stocks or other types of investments.

PSA investment objective

PSA is relatively low risk investment suitable for investors looking for an alternative to high interest deposit accounts.

Updated daily – XIU Stock

Historical performance PSA vs similar ETFs

Overview – High interest savings ETF Canada

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Forward dividend yield and Management fees

Net Div

High interest savings ETF – Canada

cibc investors' edge

You can click on the ticker of each ETF to visit the issuer’s website. Please note the dividend yield shown on the issuers’ websites corresponds to the forward dividend yield. The latter is a projection based on the last dividend paid.

The trailing dividend yield shown in the table above is the dividend yield calculated using the dividend paid in the last 350 days.

GIC vs High interest saving ETFs

Savings ETF
Type of
Low-riskLow to moderate risk
ReturnGuaranteed fixed
rate of return
Potentially higher
rate of return
TermTypically 1 to 5 yearsNo fixed term
Typically higher than
savings accounts
Varies depending on
market conditions
RiskVery low riskHigher risk than GICs
GuaranteeGuaranteed by the
issuing institution
No guarantee of return
SuitabilitySuitable for
risk-averse investors
Suitable for those seeking higher
returns with moderate risk toleranc

Difference between Forward and Trailing dividend yield

Dividend Yield (Forward) = (Most Recent Dividend * Dividend Frequency) / Price

Forward dividend yield and trailing dividend yield are both measures of a company’s dividend payout to its shareholders, but they differ in the time period used to calculate them.

Trailing dividend yield is calculated based on the dividends paid over the past 12 months, divided by the current stock price. It provides an indication of how much a company has paid out in dividends over the past year, relative to its current stock price.

Forward dividend yield, on the other hand, is calculated based on the expected dividends that will be paid out in the future, divided by the current stock price. It provides an indication of how much a company is expected to pay out in dividends over the next 12 months, relative to its current stock price.

The main difference between the two is that forward dividend yield is a projection of what is expected to happen in the future, whereas trailing dividend yield is based on actual historical data. As a result, forward dividend yield can be more speculative and less reliable than trailing dividend yield.

Investors may use both measures in combination to get a more complete picture of a company’s dividend payout.