Personal Finance Canada

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submitted 1 year ago by [email protected] to c/[email protected]

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[–] [email protected] 5 points 1 year ago* (last edited 1 year ago) (1 children)

I see 3 points you should have in mind :

• you don't get a guaranteed rate, the rate could go up or down at any time

• cash ETF aren't insured, so even though limited, counter party risk exists (ETF manager or deposit bank failure)

• OSFI is currently reviewing these ETF because banks complained about them, so things may evolve for them in the next few months

[–] fresh 3 points 1 year ago

Ah right, you pay for the liquidity with rate volatility.

I really hope the banks don’t get their way. It sounds like they just don’t like the competition.