6 Best High Yielding HISA ETFs Canada

ETF Jul 17, 2024 6 min read
6 Best High Yielding HISA ETFs Canada

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6 of the best HISA ETFs Canadian investors should evaluate are:

1. Evolve High Interest Savings Account Fund (HISA)
2. Horizons High Interest Savings ETF (CASH)
3. CI High Interest Savings ETF (CSAV)
4. Horizons Cash Maximizer ETF (HSAV)
5. Purpose High Interest Savings ETF (PSA)
6. iShares Premium Money Market ETF (CMR)

1. Evolve High Interest Savings Account Fund (HISA)

Evolve Financial’s High Interest Savings Account Fund (HISA) provides investors with a high-yield savings option.

It aims to offer good returns while maintaining the liquidity and stability of a regular savings account.

The Evolve HISA gives investors a competitive interest rate without sacrificing the security of their funds.

It’s perfect for those who seek an alternative to savings accounts with minimal to no returns.

Unlike other savings accounts, the Evolve HISA is flexible and accessible.

Investors can access their funds whenever needed, making it ideal for short-term and long-term savings goals.

The Evolve HISA has the potential to generate a stable income stream.

This makes it a great choice for those searching for regular cash flow from their investments.

Pro Tip

To maximize returns and maintain secure, accessible funds, diversify your investment portfolio by including safe, high-yield investments like the Evolve HISA.

2. Horizons High Interest Savings ETF (CASH)

The Horizons High Interest Savings ETF (CASH) is ideal for Canadians seeking a high-yielding HISA.

It offers a comparable interest rate to some of the top savings accounts.

CASH provides liquidity and convenience, like traditional savings accounts, but with potential for higher returns.

Plus, it can be traded on the exchange, giving investors more control over their funds.

Investing in CASH is a smart choice for those who want to make their money work harder without taking on too much risk.

Allocating a portion of your portfolio to this ETF allows you to take advantage of attractive interest rates while maintaining control and flexibility.

3. CI High Interest Savings ETF (CSAV)

The CI High Interest Savings ETF (CSAV) offers a competitive yield, making it an attractive option.

Plus, this ETF emphasizes stability and capital preservation.

With a focus on low-risk investments, it aims to deliver consistent returns, while minimizing volatility.

The CI High Interest Savings ETF is a little different from the above in that it invests in a mix of fixed income securities and cash equivalents, helping to spread out risk across various asset classes.

The CI Investments team plays a major role in the success of CSAV.

They select the underlying securities and actively manage the portfolio, working towards consistent returns over time.

4. Horizons Cash Maximizer ETF (HSAV)

The Horizons Cash Maximizer ETF (HSAV) is an ideal pick for investors aiming for high yields.

It invests in short-term fixed income securities for maximizing cash returns.

Its disciplined style and risk management give a consistent and attractive yield with capital preservation.

HSAV stands out with its ability to invest in Canadian and U.S. dollar denominated securities.

This diversifies holdings and makes the most of both markets.

It has a low management fee, giving investors the majority of returns.

Pro Tip

If you’re looking for a high yield option with capital preservation and low fees, consider Horizons Cash Maximizer ETF (HSAV)!

5. Purpose High Interest Savings ETF (PSA)

The Purpose High Interest Savings ETF (PSA) has been offering investors attractive returns.

PSA aims to provide a safe and profitable option while maximizing interest income.

The ETF allows diversified savings with many perks.

Investing in Canadian cash and near-cash securities lets money work hard.

Plus, daily liquidity means access to funds whenever needed.

Low fees ensure more money stays in your pocket.

Furthermore, regular interest distributions are paid out monthly, allowing you to reinvest or withdraw as desired.

PSA stands out with its stability, flexibility, low fees, and distributions.

Whether saving short-term or diversifying, it offers safety and profitability.

6. iShares Premium Money Market ETF (CMR)

The iShares Premium Money Market ETF (CMR) offers investors a secure and stable option for their cash investments.

It focuses on money market instruments and seeks to provide investors with a competitive yield.

It achieves this by investing in a diversified portfolio of Canadian dollar-denominated money market securities.

One unique feature of CMR is daily liquidity.

Investors can buy or sell shares of the ETF on any business day.

This gives them flexibility and easy access to their funds.

The ETF was created in 2019.

Since then, it has grown in popularity among investors who want a low-risk investment with attractive returns.

The ETF has consistently delivered on its promise of providing a high yield and preserving capital.

Investing in the iShares Premium Money Market ETF (CMR) can be a wise move for those seeking stability and income from their cash investments.

It has a strong track record and commitment to delivering competitive yields.

This ETF offers a reliable solution for preserving wealth without taking excessive risks.

What is a HISA ETF?

HISA ETFs – or High Interest Saving Account Exchange Traded Funds – offer an interesting option for investors.

They mimic a diversified portfolio of high-interest savings accounts.

You get the benefits of a savings account and an investment fund.

Unlike regular savings accounts, HISA ETFs aim to provide competitive returns.

They invest in various high-interest saving accounts offered by different financial institutions.

This helps reduce risk and increase potential for higher returns.

What’s more, HISA ETFs can be traded on stock exchanges.

This makes them more accessible and liquid than other investments.

So, you can buy or sell shares anytime during trading hours.

Investing in HISA ETFs is attractive for people looking for stable, low-risk options with relatively high yields.

They’re ideal for those who want higher interest rates without higher volatility.

If your savings account yields are dismal or you’re wary of riskier investments, check out HISA ETFs.

Their stability, high yields, and accessibility make them a great choice for your portfolio.

Key Considerations When Investing in HISA ETFs

Assess the fund’s track record and performance history – look for funds with high yields over time.

Look at the management fees – lower fees can mean better returns.

Check the underlying assets – a diversified portfolio helps reduce risk.

Don’t forget liquidity – ETFs with sufficient trading volume makes buying or selling easier.

Tax implications are important – understanding dividends can help maximize after-tax returns.

Pay attention to interest rate fluctuations – it affects bond values and ETF performance.

To stay on top of things, monitor economic indicators and market trends.

One more thing: Before investing, consult a financial advisor for personalized advice.

DISCLAIMER: This is not investment advice. Recommendations are for educational purposes only, presented as a path for you to further research. Please seek independent financial advice before making any financial decisions. PiggyBank is not liable for any investment decisions you make based on the information presented on this website.

Frequently Asked Questions

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What are HISA ETFs in Canada?

HISA ETFs (High Interest Savings Account Exchange-Traded Funds) in Canada are investment products that combine the characteristics of a savings account and an ETF. They aim to provide investors with higher interest rates than traditional savings accounts while offering the benefits of being traded on stock exchanges.

How do HISA ETFs work?

HISA ETFs invest in a portfolio of high-interest savings accounts, money market instruments, or short-term fixed income securities. They replicate the performance of an underlying index that tracks a basket of these instruments. Investors can buy and sell HISA ETFs on stock exchanges, similar to regular ETFs.

What are the advantages of investing in HISA ETFs?

Investing in HISA ETFs can offer several benefits, including higher interest rates compared to traditional savings accounts, easy accessibility through stock exchanges, diversification across multiple savings accounts, and potential tax advantages, such as tax-free savings account (TFSA) eligibility.

What are the risks associated with HISA ETFs?

While HISA ETFs aim to provide higher interest rates and stability, there are certain risks to consider. These may include interest rate risk, credit risk, liquidity risk, and the possibility of the fund not meeting its investment objectives. It’s important to carefully read the ETF’s prospectus and understand the risks before investing.

How can I choose the best HISA ETFs in Canada?

When selecting the best HISA ETFs in Canada, it’s important to consider factors such as the fund’s track record, expense ratio, underlying index, management team, and the financial institution backing the ETF. Additionally, investors should evaluate their investment goals, risk tolerance, and time horizon before making a decision.

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