Investing in money market funds has become an increasingly popular option for Canadians seeking to preserve their capital while earning a modest return on their savings. These ETFs typically have maturities of less than one year and are considered to be a safe, low risk investment option for investors looking to preserve their capital while earning a minimal return.
What is the Best Money Market ETF in Canada?
- CBIL.TO: Horizons 0-3 Month T-Bill ETF
- CMNY.TO: CI Money Market Fund
- CMR.TO: iShares Premium Money Market ETF
- FHIS.TO: Franklin Bissett Ultra Short Bond Active ETF
- MCAD.TO: Premium Cash Management Fund
- MNY.TO: Purpose Cash Management Fund
- XFR.TO: iShares Floating Rate Index ETF
- ZMMK.TO: BMO Money Market Fund ETF Series
- ZST.TO: BMO Ultra Short-Term Bond ETF
Here is a table comparing similar money market ETFs in Canada as of August 31, 2023.
| Ticker | Name | Inception | AUM | MER |
| CMR | iShares Premium Money Market ETF | 2008-02-19 | $577,823,203 | 0.27% |
| XFR | iShares Floating Rate Index ETF | 2011-12-06 | $867,760,358 | 0.22% |
| ZMMK | BMO Money Market Fund ETF Series | 2021-11-29 | $798,420,000 | 0.14% |
| CBIL | Horizons 0-3 Month T-Bill ETF | 2023-04-12 | $466,279,377 | N/A |
XFR.TO: iShares Floating Rate Index ETF
Seeks to provide income while limiting interest rate risk by replicating the performance of the FTSE Canada Floating Rate Note Index™, net of expenses. Exposure to Canadian floating rate bonds, whose interest payments adjust to reflect changes in interest rates. Seeks to provide a consistent and stable income stream. XFR can be used to manage interest rate risk.
CMR.TO: iShares Premium Money Market ETF
Seeks to provide current income, capital preservation and liquidity. Exposure to high-quality short-term debt securitiesCan be used to help meet current income and liquidity needs.
ZMMK.TO: BMO Money Market Fund ETF Series
BMO Money Market Fund ETF Series provides exposure to high-quality money market instruments issued by governments and corporations in Canada, including treasury bills, bankers’ acceptances, and commercial paper. The manager selects high quality money market securities that mature in less than 365 days and have an average term-to-maturity of less than 90 days.
CBIL.TO: Horizons 0-3 Month T-Bill ETF
CBIL invests primarily in short-term Government of Canada T-Bills, which are backed by the credit of the Canadian Government. CBIL’s yield is generally anticipated to increase or decrease depending on the prevailing interest rate environment in Canada. CBIL seeks to provide interest income through exposure to Government of Canada Treasury Bills with remaining maturities generally less than 3 months.
CMNY.TO: CI Money Market Fund
The ETF’s objective is to earn income at the highest rate of return that is consistent with preserving capital and maintaining liquidity. It invests primarily in money market instruments that mature in less than 365 days.
- want to receive income
- are investing for the short term
- can tolerate low risk
