Canada (finally) gets a T-Bill ETF

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blue_ruin17
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Canada (finally) gets a T-Bill ETF

Post by blue_ruin17 » Sun Dec 24, 2023 8:35 pm

https://horizonsetfs.com/ETF/cbil/

No provincial exposure, no Ontario Pension Plan crap, no commercial paper...just pure, unadulterated federal government treasury bills.

15 to 20 years late, but good to finally have this as an option.
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Re: Canada (finally) gets a T-Bill ETF

Post by dualstow » Mon Dec 25, 2023 7:05 am

Cool!
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Re: Canada (finally) gets a T-Bill ETF

Post by Smith1776 » Mon Dec 25, 2023 11:31 am

I jumped on CBIL literally the day it was launched and available.

So long ZFS!! We hardly knew ye!
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Re: Canada (finally) gets a T-Bill ETF

Post by blue_ruin17 » Mon Dec 25, 2023 7:26 pm

Smith1776 wrote:
Mon Dec 25, 2023 11:31 am
I jumped on CBIL literally the day it was launched and available.

So long ZFS!! We hardly knew ye!
I had settled for CMR. In the trash it goes!
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Re: Canada (finally) gets a T-Bill ETF

Post by Smith1776 » Mon Dec 25, 2023 9:56 pm

blue_ruin17 wrote:
Mon Dec 25, 2023 7:26 pm
Smith1776 wrote:
Mon Dec 25, 2023 11:31 am
I jumped on CBIL literally the day it was launched and available.

So long ZFS!! We hardly knew ye!
I had settled for CMR. In the trash it goes!
CMR if you were willing to take on the credit risk. ZFS if you wanted to take on the duration risk. You couldn’t win either way!

:o
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Re: Canada (finally) gets a T-Bill ETF

Post by vnatale » Thu Dec 28, 2023 5:19 pm

Smith1776!

In this latest podcast I'm listening to I was shocked when the guest stated that he is a Canadian!

He has no accent! He sounded like an American to me. Is that typical for most Canadians? Certainly not the case for all Americans as I find that our country has a lot of weird accents in various parts of the country.
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Re: Canada (finally) gets a T-Bill ETF

Post by dualstow » Thu Dec 28, 2023 6:47 pm

Listen for the word “out” or “about.”
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Re: Canada (finally) gets a T-Bill ETF

Post by 425 » Thu Feb 01, 2024 4:56 pm

Interested in CBIL, but I'm concerned that they don't have any financial statements released yet and their prospectus shows they have specifically appointed a securities lending agent (CIBC).

Compared to CMR, which shows no income from securities lending as of its most recent financial statements, if we assume that CBIL engages in securities lending would this change the view of those who took the plunge in investing in CBIL over its safety as a Canadian TBIL etf?
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Re: Canada (finally) gets a T-Bill ETF

Post by Smith1776 » Sat Feb 03, 2024 11:03 am

425 wrote:
Thu Feb 01, 2024 4:56 pm
Interested in CBIL, but I'm concerned that they don't have any financial statements released yet and their prospectus shows they have specifically appointed a securities lending agent (CIBC).

Compared to CMR, which shows no income from securities lending as of its most recent financial statements, if we assume that CBIL engages in securities lending would this change the view of those who took the plunge in investing in CBIL over its safety as a Canadian TBIL etf?
Not something that I've personally worried about. Given that securities lending has to be fully cash collateralized I'm not particularly concerned.
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Re: Canada (finally) gets a T-Bill ETF

Post by 425 » Sat Feb 03, 2024 6:37 pm

That's a good point, thanks Smith.

I suppose even with 1/3 of the assets held under money market collateral that the risk of both the borrower defaulting and the value of the collateral crashing (which historically breaking the buck at 3% was already bad enough) at the same time is low enough not to be a concern. It's still a smaller risk than just investing in a money market fund.

Still important I think to point out such risk over directly holding treasuries which in Canada, there isn't an easy option to do so CBIL is probably good enough.
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