HSAV Question

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Hello Dan:
Being reading some of the earlier questions and answers regarding HSAV. I am thinking this might be a good fund to park money and better tax efficiency in a taxable account, but I have looked at the chart and I see dips along the way. From a previous question you attribute this to the fund not accepting new funds and the secondary market, not really following this. I went to Morningstar and it suggested NAV is 114 and its trading at around 115. It always bounces back after a dip and I assume it’s just settling back to NAV. Are there concerns the potential savings from taxes would be offset by paying a MER of 0.20% and with the dips the actual return could be less than a GIC type product.

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Asked on April 23, 2025 11:13 am
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Private answer

Yes, those dips would be the fund reverting back towards its NAV.

If we calculate that at this point, it is a 0.87% premium to NAV. So theoretically, if it went down to NAV, one could end up losing all of the tax benefits of the fund, because something like CASH.TO would earn 0.87% more than HSAV.

It is a risk some people have to accept if they want to own it. Thus far, it tends to bounce back, however this is never a guarantee.

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Posted by Dan Kent
Answered on April 23, 2025 2:02 pm
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Hi Dan: So if I understand correctly and using April 23 as an example it closed out at 115.04 and the NAV indicator I use shows that the NAV on April 23 was 114.81 then it is a difference of +0.23. So then that would be considered trading at a premium?. Anyone investing probably wants to enter a position at the NAV price or at a discount as opposed to a premium, or at least a premium not too far away from Nav. And to exit a position try and do so when it is at premium?
(bpl521@outlook.com at April 24, 2025 11:08 am)
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