The Best High Interest Savings ETF in Canada (2024)

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.

Nic Tustin, BA Econ

I used my experience from Sunlife, BMO, TD, Edward Jones and Canada Life to create apps to help investors pay fewer fees and income tax. I have a degree in Economics from the University of Waterloo, and financial industry designations such as the Canadian Securities Course (CSC), Conduct & Practices Handbook (CPH), Wealth Management Essentials (WME)and LLQP. I primarily focus on tactical asset allocation by actively balancing portfolios to reduce market risk. I’ve built my business on a foundation of integrity, due diligence, and innovation. I have the essential resources and financial expertise to implement these sophisticated strategies and help you understand how the variables, such as length of investment, liquidity of the investment, inflation rate, income taxes, market fluctuations, and interest rate risks can impact the results you want to achieve long term.