High interest savings exchange traded funds (ETFs) offer investors an opportunity to save money and earn competitive interest rates, providing better returns than traditional savings accounts or money market funds. They prioritize liquidity and safety, making them an appealing option. Compared to riskier investments like stocks, high interest cash ETFs in Canada are considered extremely low-risk. They aim to preserve capital, offer some potential appreciation, and keep risk exposure minimal.
What is the Best High Interest Savings ETF in Canada?
- PSA: Purpose High Interest Savings Fund
- CSAV: CI High Interest Savings ETF
- HISA: High Interest Savings Account Fund
- HSAV: Global X Cash Maximizer Corporate Class ETF
- NSAV: Ninepoint High Interest Savings Fund
- CASH: Global X High Interest Savings ETF
| Manager | ETF | Name | Inception | MER | AUM | 5Y |
|---|---|---|---|---|---|---|
| CI | CSAV | CI High Interest Savings ETF | 2019-06-14 | 0.16% | $7,720,000,000 | 2.44% |
| Evolve | HISA | High Interest Savings Account ETF | 2020-01-16 | 0.07% | $4,241,877,000 | N/A |
| Horizons | CASH | Global X High Interest Savings ETF | 2021-11-01 | 0.11% | $4,868,410,812 | N/A |
| Horizons | HSAV | Global X Cash Maximizer Corporate Class ETF | 2020-02-05 | 0.20% | $2,236,840,976 | N/A |
| Ninepoint | NSAV | Ninepoint High Interest Savings Fund | 2020-11-17 | 0.16% | $501,650,000 | N/A |
| Purpose | PSA | Purpose High Interest Savings Fund | 2013-10-15 | 0.16% | $5,500,000,000 | 2.50% |
6. Horizons High Interest Savings ETF
Horizons High Interest Savings ETF (CASH) seeks to maximize monthly income for unitholders while preserving capital and liquidity by investing primarily in high-interest deposit accounts with Canadian banks.
- Enhanced Savings Potential: CASH invests almost all of its assets in high-interest deposit accounts with one or more Canadian chartered banks which provide a higher interest rate than a traditional savings account
- Daily Liquidity: CASH is an ETF so it can be purchased or sold anytime throughout the trading day. This is a key advantage versus other high-interest savings vehicles, which typically have minimum holding periods or investment amounts
- Monthly Income: It is anticipated that CASH will make distributions to its Unitholders on a monthly basis
5. Ninepoint High Interest Savings Fund
The Ninepoint High Interest Savings Fund (NSAV) is a high-quality, short-term vehicle for investors who want to earn a better rate of return on their idle cash.
- Invests in high interest saving accounts at Schedule 1 banks, and/or high-quality money market securities
- Daily Liquidity
- No Term Commitments
4. Horizons Cash Maximizer ETF
Horizons Cash Maximizer ETF (HSAV) seeks to generate modest capital growth by investing primarily in high interest deposit accounts with Canadian banks. While any decision to pay dividends or other distributions is within the discretion of the Manager, HSAV is not currently expected to make any regular distributions. Horizons Cash Maximizer ETF Suspends New Subscriptions After Reaching Approximately $2 Billion in Assets.
3. High Interest Savings Account Fund
Maximize Monthly Income with High Interest Savings Account Fund (HISA). HISA seeks to maximize monthly income while preserving capital and liquidity by investing primarily in high-interest deposit accounts.
Cash has always been an important component of a well-diversified portfolio. The cash portion of a portfolio helps preserve capital during market downturns and may act as a temporary hold until new investment opportunities become available. HISA preserves your capital and liquidity by investing in high-interest deposit accounts.
- Exposure to high-interest deposit accounts
- Liquid, short term investment
- Receive regular monthly cash flows
2. CI High Interest Savings ETF
CI High Interest Savings ETF (CSAV) seeks to maximize monthly income for unitholders while preserving capital and liquidity by investing primarily in high interest deposit accounts.
- seeking higher yields on cash balances through high interest deposit accounts
- looking for a liquid, short-term investment
- want to receive monthly cash flows
- can tolerate low risk
1. Purpose High Interest Savings Fund
Purpose High Interest Savings Fund (PSA) gets the best-in-class yield for a cash deposit product with preferred rates negotiated with Canada’s big banks.
- Generate best-in-class yields and access your cash anytime
- Premium interest rate calculated daily and paid monthly
- No hidden fees, no lock-up periods, or minimum balances
- Daily liquidity (T+1)
- Deposits securely invested in high interest deposit accounts with Schedule 1 Canadian banks
What are the Advantages of High Interest Savings ETFs?
- Lowest Risk: virtually no market or credit risk because the funds are held in cash
- Competitive Interest Rates: Interest rates similar to high-interest savings accounts
- Liquidity: You can easily get your money out and invest it elsewhere
- Diversification: Most ETF managers use a few bank high-interest savings accounts
- No Minimum Balance: Buy as many shares as you can afford
What are the Disadvantages of High Interest Savings ETFs?
An ETF differs from high-interest savings accounts in that it is not protected by CDIC insurance. In the event of any mishap with the ETF’s assets, there is no government-backed insurance to safeguard your investment. Funds held in a bank that went under could potentially face significant losses, however, such occurrences are highly improbable. The yields on these ETFs are closely tied to prevailing interest rates. In a rising interest rate environment, or when rates are expected to remain high for an extended period, these ETFs become more lucrative as they earn higher interest on their cash holdings. These are a superior alternative to a GIC.
