The Safe Harbor in a Volatile Market: Why PSA ETF is a Must-Hold Now

Investors are buzzing about a rare gem in the current market: the Purpose High Interest Savings Fund ETF (PSA), which just announced a CAD 0.1151 dividend for its May 2025 distribution. In a world where volatility reigns and yields on traditional savings accounts are lackluster, this ETF is delivering both stability and outsized returns. Let’s dive into why this could be the “Mad Money” move of the year.

The Dividend Play That’s Hard to Ignore

The CAD 0.1151 dividend declared for PSA’s May payout isn’t just a number—it’s proof that this ETF is turning high-interest savings into a cash cow for investors. With a payable date of May 2, 2025, this marks the latest in a string of consistent distributions. But what makes this fund so special?

First, PSA isn’t a typical ETF. It’s structured to mirror high-interest savings accounts, which means it’s backed by deposits in banks with the highest rates. In an era of stubbornly high interest rates, this model is a yield-hunter’s dream. Unlike stocks or bonds that fluctuate with market whims, PSA’s returns are tied to short-term rates—making it a low-risk, high-reward play.

The Numbers Don’t Lie

Let’s get granular. The annualized yield on PSA’s current distribution is staggering. With a monthly payout of CAD 0.1151, investors are looking at an annual yield of ~13.8% (0.1151 × 12). That’s not a typo—this beats the returns of many “high-yield” bonds and trounces the paltry 0.5–1% you’d get in a traditional savings account.

But don’t just take my word for it. Let’s see the data:

Looking at PSA’s track record, the fund has delivered 12 consecutive monthly distributions since its launch, with yields climbing as rates rose. This reliability is a rare find in today’s markets, where even blue-chip stocks are volatile.

Why PSA Crushes Competitors

Compare PSA to other “safe” investments:
- CDs (Certificate of Deposits): They offer fixed rates but lock your money away. PSA gives you liquidity—trade it like a stock!
- Money Market Funds: Their yields are stuck in the mud (think 1–2% today). PSA’s 13.8% is in a totally different stratosphere.
- Treasury Bills: Sure, they’re safe, but their yields are a fraction of what PSA offers.

Even better, PSA’s low expense ratio (check the latest fee structure here: ) ensures more of your gains stay in your pocket.

The Catch? There Isn’t One (Almost)

Now, let’s address the elephant in the room: risk. While no investment is risk-free, PSA’s structure minimizes the downsides. Its holdings are in top-tier banks, and the ETF’s mandate keeps maturities short (think 30 days or less). That means if rates drop, the fund can pivot quickly. Plus, in a recession? Savings accounts are the last to feel the pinch—they’re stable by design.

The only caveat? Interest rate cuts could dent yields. But with the Bank of Canada and Fed signaling patience on rate hikes, and inflation still elevated, I’m betting rates stay elevated longer than Wall Street expects.

Conclusion: This Is a “Buy and Hold” for the Ages

The Purpose High Interest Savings Fund ETF (PSA) isn’t just a dividend machine—it’s a defensive powerhouse in a turbulent market. With a 13.8% annual yield, rock-solid safety, and liquidity you can’t get from a CD, this is a no-brainer for retirees, income seekers, and anyone tired of getting crumbs from their savings.

Here’s the proof:
- Dividend Consistency: PSA has paid out every month since Q4 2023, with distributions rising as rates climbed.
- Yield Dominance: Its 13.8% yield blows away competitors like the Fidelity Government Money Market Fund (FGMXX), which yields ~1.5%.
- Liquidity: Trade it on the TSX (PSA.TO) any day the market’s open—no lockups!

In my book, this is a “Mad Money Bullish” call. Buy PSA now, hold it for the long haul, and watch the dividends roll in. In a world gone mad, this ETF is your anchor.

Disclaimer: Past performance does not guarantee future results. Always consult a financial advisor before making investment decisions.