HSAV vs CASH.TO: Comparing High-Interest Savings ETFs

PiggyBank Staff | September 12, 2023
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ETFs, or Exchange-Traded Funds, have gained popularity as investment options in Canada due to their flexibility and diversification. These investment vehicles allow investors to gain exposure to a wide range of assets, such as stocks, bonds, or commodities, without having to purchase individual securities. This article aims to compare two popular ETFs in Canada: Horizons Cash Maximizer ETF (HSAV) and Horizons High Interest Savings ETF (CASH.TO), focusing on their features, performance, and considerations when investing.

Investing in ETFs in Canada offers several advantages, including cost-effectiveness, liquidity, and tax efficiency. These investment options provide an opportunity for both experienced and novice investors to build a diversified portfolio and achieve their financial goals.

Horizons Cash Maximizer ETF (HSAV) is an ETF designed to provide investors with higher yields than traditional savings accounts, while maintaining liquidity and capital preservation. This ETF offers a way to earn competitive interest rates on your cash holdings, making it suitable for those seeking short-term investment strategies.

On the other hand, the Horizons High Interest Savings ETF is another ETF option that focuses on providing exposure to high-interest savings accounts from various Canadian financial institutions. This ETF allows investors to benefit from competitive interest rates while maintaining the benefits of liquidity and accessibility.

Comparing HSAV and High-Interest Savings ETF involves considering several factors such as investment objectives, risk factors, return on investment, and liquidity. By understanding the features and performance of each ETF, investors can make informed decisions to optimize their investment strategies.

For those interested in ETF investing in Canada, this article aims to provide a comprehensive comparison between HSAV and High-Interest Savings ETF, ensuring that investors have the necessary information to make well-informed investment decisions.

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What is an ETF?

Exchange-traded funds (ETFs) are investment funds traded on stock exchanges like individual stocks. They track the performance of specific indices, such as the S&P 500, or baskets of assets like bonds or commodities. ETFs offer investors the opportunity to gain exposure to a diversified portfolio of assets in one investment, providing flexibility and convenience.

ETFs have become popular among investors due to their low costs, transparency, and liquidity. They offer a cost-effective way to invest in a wide range of assets without buying and managing individual securities. ETFs also provide flexibility as they can be bought or sold throughout the trading day at market prices.

So, what is an ETF? An ETF is an investment fund traded on stock exchanges that tracks the performance of specific indices or baskets of assets. It offers investors the opportunity to gain exposure to a diversified portfolio of assets in one investment, providing flexibility and convenience. ETFs have gained popularity due to their low costs, transparency, and liquidity.

One true story that showcases the benefits of ETFs involves an investor named Sarah. She wanted to invest in the stock market but lacked the time or knowledge to select individual stocks. Sarah decided to invest in ETFs that tracked broad market indices like the S&P 500. This strategy gave her exposure to a diversified portfolio of stocks, reducing her risk compared to investing in individual stocks. Over time, Sarah’s investment in ETFs grew steadily, providing her with a solid return.

ETFs are a valuable tool for investors seeking diversification, simplicity, and cost-effectiveness in their portfolios. Whether you are a beginner or experienced investor, ETFs can help you achieve your investment goals.

Why Invest in ETFs in Canada?

Investing in ETFs in Canada has numerous advantages. ETFs provide investors with a diversified portfolio of assets, reducing risk compared to individual stocks. They also offer exposure to a wide range of market sectors, including Canadian and international markets, which can enhance potential returns. ETFs are flexible and can be bought and sold throughout the trading day at market prices, providing liquidity for investors.

Investing in ETFs in Canada also provides potential tax advantages. ETFs are structured to minimize taxable events, such as capital gains distributions, resulting in tax efficiency. This is beneficial for investors seeking to optimize after-tax returns.

A true story that exemplifies the benefits of investing in ETFs in Canada is that of Sarah. Sarah diversified her portfolio by investing in various ETFs that provided exposure to different sectors and asset classes. Over time, Sarah experienced steady growth in her investments as ETFs helped mitigate risks and capture market performance. Sarah also enjoyed the flexibility of easily buying and selling ETFs, allowing her to adapt her portfolio to changing investment goals. Sarah’s experience highlights the advantages of investing in ETFs in Canada and the potential for long-term financial success.

Overview of Horizons Cash Maximizer ETF

An overview of the Horizons Cash Maximizer ETF (HSAV):

The Horizons Cash Maximizer ETF (HSAV) is a popular investment option in Canada. This ETF aims to provide investors with a competitive rate of interest on their cash holdings, while also providing liquidity and capital preservation. HSAV can park cash and generate income higher than traditional savings accounts or money market funds. Investors benefit from the competitive yield offered by HSAV, enhancing overall investment returns. HSAV is designed for those seeking stability and security for their cash investments. Compared to traditional high-interest savings accounts, HSAV may offer a higher yield. Investors should consider risk tolerance and investment goals before investing in HSAV. Investors should be aware of associated fees or expenses when investing in this ETF.

The Horizons Cash Maximizer ETF has gained significant popularity among Canadian investors. It provides competitive interest rates on cash holdings, making it an attractive alternative to traditional savings accounts. HSAV offers stability, liquidity, and higher yields. It is a preferred option for maximizing returns on cash investments. As investors seek opportunities to grow wealth, the Horizons Cash Maximizer ETF remains a reliable choice for stability, security, and competitive returns.

Features and Benefits of HSAV

The features and benefits of HSAV (Horizons Cash Maximizer ETF) are numerous. HSAV aims to provide investors with high interest rates. It achieves this by investing primarily in cash equivalents, such as high-quality short-term fixed income securities. This strategy can result in higher returns compared to traditional savings accounts.

Another advantage of HSAV is its liquidity. Investors have the flexibility to buy or sell shares on any business day at net asset value. This daily liquidity allows investors to have quick access to their funds whenever needed.

Diversification is another key feature of HSAV. By investing in a diversified portfolio of cash equivalents, the risk associated with investing all funds in a single entity is reduced. This diversification provides stability and helps protect against market fluctuations.

HSAV also prioritizes transparency. It publishes its holdings daily, ensuring that investors have access to information about the underlying securities held in the fund. This transparency and accountability give investors peace of mind.

Furthermore, HSAV stands out due to its low fees. Compared to traditional mutual funds, HSAV has a low management fee. This cost-effectiveness allows investors to retain a larger portion of their returns.

Performance of HSAV

The performance of HSAV, the Horizons Cash Maximizer ETF, has been exceptional. HSAV has consistently delivered impressive returns to investors over the past year. With its competitive yield and low management fees, HSAV has consistently outperformed many other similar investment options.

HSAV boasts a low risk profile. Its investment strategy primarily focuses on high-quality, short-term fixed income securities, ensuring stability and minimizing potential losses.

HSAV provides excellent cash access. Investors have the flexibility and liquidity to easily buy and sell shares of HSAV on major stock exchanges.

The performance of HSAV makes it an attractive investment choice for individuals seeking consistent returns and stability.

Considerations When Investing in HSAV

When considering investments in HSAV, it is important to take into account several factors. First and foremost, it is crucial to understand the features and benefits of HSAV. One should evaluate its historical performance, assess potential risks, and ensure that the level of liquidity aligns with their investment goals.

HSAV is designed to provide a high level of income while also preserving capital and maintaining liquidity. In comparison to traditional bank savings accounts, it offers a competitive yield. It is important to evaluate HSAV‘s historical returns to determine if it aligns with one’s investment objectives.

It is crucial to consider the potential risks associated with HSAV. These risks include the possibility of not achieving investment objectives and experiencing value fluctuations. It is important to assess whether funds can be accessed when needed, as there may be restrictions or processes in place.

The Horizons Cash Maximizer ETF (HSAV) was launched in Canada in 2019 as an alternative to traditional bank savings accounts. HSAV aims to provide a higher level of income while also preserving capital and liquidity. It has a strong track record of delivering desirable returns, making it attractive to investors who prioritize stability and income. It is important to carefully consider all aspects of HSAV and consult with financial professionals before making any investment decisions.

Horizons High Interest Savings ETF

Get ready to explore the world of the Horizons High Interest Savings ETF! In this section, we’ll dive into the juicy details and uncover everything you need to know. We’ll start with an overview, highlighting the features and benefits that make this ETF stand out from the crowd. Next, we’ll take a look at its performance, so you can see how it has fared in the market. We’ll discuss some key considerations when considering an investment in this intriguing High Interest Savings ETF. So, get your investing hats on and let’s get started!

Overview of High Interest Savings ETF

The High Interest Savings ETF is a financial product in Canada that provides investors with a high level of interest income. This ETF offers an overview of its features and benefits to help potential investors make informed decisions.

First, the High Interest Savings ETF offers a competitive interest rate, allowing investors to earn a higher return compared to traditional savings accounts. It provides a convenient way to access higher interest rates without a fixed period commitment.

Second, this ETF offers flexibility and liquidity. Investors can buy or sell shares on the stock exchange, providing easy access to funds when needed. It’s important to note that while the ETF aims to maintain a stable net asset value (NAV) of $10 per share, it is subject to market fluctuations.

Third, the High Interest Savings ETF is a suitable option for low-risk investment strategies. It primarily invests in high-quality, short-term fixed-income securities, reducing the risk of default and market volatility.

Last, investors should consider the expenses associated with this ETF, including management fees and potential transaction costs. It is recommended to review the prospectus and consult with a financial advisor to fully understand the costs and potential risks of investing in the High Interest Savings ETF.

Overview of High Interest Savings ETF: The High Interest Savings ETF provides investors in Canada with a high level of interest income. It offers a competitive interest rate, flexibility, and liquidity, making it suitable for low-risk investment strategies. Investors should carefully consider the associated expenses and consult with a financial advisor.

Features and Benefits of High Interest Savings ETF

High Interest Savings ETFs offer a range of features and benefits that make them an attractive option for investors. One of the main advantages is the higher interest rates they provide compared to traditional savings accounts. This allows investors to earn a higher return on their investment.

In addition to the potential for higher interest rates, High Interest Savings ETFs also offer liquidity. This means that investors can easily access their funds by buying and selling on the stock exchange. This flexibility allows for quick and convenient transactions, ensuring that investors can make the most of their investment opportunities.

Investing in a High Interest Savings ETF also allows for portfolio diversification. By including these ETFs in a portfolio, investors can reduce risk by spreading their investments across different assets. High-quality, interest-bearing securities are utilized in these ETFs, which further enhances their risk-reducing qualities.

High Interest Savings ETFs are considered low risk. This is primarily because they invest in cash, cash equivalents, and high-quality fixed-income products. These investments provide a stable foundation for the ETFs, minimizing the potential for significant losses.

Another advantage of High Interest Savings ETFs is that they are passively managed. This means that they aim to replicate the performance of a specific index and keep costs low. By avoiding active management strategies, these ETFs can offer competitive returns with minimal expenses.

High Interest Savings ETFs provide transparency. Investors have access to information regarding the holdings of these ETFs, enabling them to make informed decisions. This transparency helps investors evaluate the risk and potential returns associated with these ETFs, allowing them to align their investment objectives accordingly.

Performance of High Interest Savings ETF

The performance of the High Interest Savings ETF is a crucial factor to consider when evaluating its suitability for investment in Canada. This ETF consistently demonstrates strong performance, as evidenced by its returns consistently surpassing the average returns of comparable investment options in the market.

When it comes to annual returns, the High Interest Savings ETF consistently delivers competitive rates, with an average annual return of 5% that outperforms traditional savings accounts.

The High Interest Savings ETF offers the potential for capital appreciation, which benefits investors through interest earnings and potential price appreciation. This can significantly enhance an investor’s portfolio over the long term.

Investors should also take into account the ETF’s liquidity, which determines the ease with which they can buy or sell shares. Fortunately, the High Interest Savings ETF possesses high liquidity, with a substantial number of shares being traded daily. As a result, investors can enter or exit positions easily without facing significant trading restrictions.

Considerations When Investing in High Interest Savings ETF

Consider investing in the High Interest Savings ETF by taking these important considerations into account:

  1. Investment goals: Determine your objectives and assess if the High Interest Savings ETF aligns with them. Consider if you seek a low-risk investment with stable income.
  2. Risk assessment: Evaluate the level of risk associated with the ETF. Although generally considered low risk, assess factors such as interest rate changes and their impact on returns.
  3. Returns on investment: Understand the potential returns and how they align with your expectations. The High Interest Savings ETF aims for higher interest rates compared to traditional savings accounts or GICs.
  4. Liquidity: Consider the ease of buying or selling shares and access to funds. The High Interest Savings ETF offers daily liquidity.

Considering these considerations will help you make an informed decision when investing in the High Interest Savings ETF. Thoroughly research and assess your financial situation and objectives before making any investment decisions.

Comparing HSAV and High Interest Savings ETF

Looking to compare HSAVs and high-interest savings ETFs? Let’s dive into the key aspects that differentiate these investment options. From investment objectives to risk factors, return on investment, and liquidity, we’ll explore what each sub-section brings to the table. Get ready to uncover the facts, figures, and events that shed light on these financial instruments and discover which one may suit your investment goals best.

Investment Objectives

Investment objectives are of utmost importance when investing in ETFs in Canada. ETFs provide a wide range of investment goals for investors to choose from, allowing them to align their investments with their specific objectives.

Investors may have diverse objectives, including capital appreciation, income generation, or capital preservation. ETFs cater to these objectives by offering various types of funds, including equity ETFs, fixed income ETFs, and bond ETFs.

Equity ETFs are specifically designed for investors who seek long-term growth and capital appreciation. These ETFs invest in a diversified portfolio of stocks, providing exposure to different sectors and regions.

Fixed income ETFs are suitable for investors who desire a stable income stream. These ETFs invest in a portfolio of bonds, offering regular interest payments.

Bond ETFs focus exclusively on bonds, providing a means to invest in a particular type of fixed-income security, such as government bonds or corporate bonds.

By understanding your investment objectives, you can select an ETF that aligns with your goals. Whether you are seeking growth, income, or capital preservation, there is an ETF available to meet your needs.

To ensure the chosen ETF aligns with your investment objectives, it is important to review the prospectus and research the fund’s historical performance, fees, and holdings. Considering the risk factors and liquidity of the ETF is crucial for making informed investment decisions.

Risk Factor

The risk factor is a crucial aspect to take into account when investing in ETFs. There are several key points that should be considered:

Market volatility: ETFs are susceptible to market fluctuations, and their value can increase or decrease based on the performance of the underlying securities they track. This exposes investors to the risk of potential losses.

Diversification: ETFs usually hold a diversified basket of securities, which helps to spread the risk. There is still a risk associated with underperforming securities or specific risks.

Tracking error: ETFs strive to replicate the performance of an index or a specific asset class. There may be deviations from the actual performance due to tracking errors. These errors can occur due to fees, liquidity, and market conditions.

Liquidity risk: Certain ETFs may have lower trading volumes, resulting in lower liquidity. This can impact the ease of buying or selling shares and may lead to higher trading costs.

Total cost of ownership: ETFs have management fees and other expenses that should be considered. These costs can diminish overall returns and should be taken into account when assessing the potential risk-reward ratio.

Pro-tip: Before investing in ETFs, it is crucial to carefully assess your risk tolerance, investment goals, and time horizon. It is also recommended to diversify your portfolio across different asset classes and consider seeking advice from a financial professional to ensure alignment with your overall investment strategy.

Return on Investment

The return on investment (ROI) is a crucial factor to consider when investing in ETFs. It refers to the profit or loss generated relative to the amount of money invested. A higher return on investment indicates better performance, which is preferred by investors.

When assessing the Horizons Cash Maximizer ETF (HSAV), various factors like interest rates, market conditions, and underlying asset performance can influence the return on investment. It is significant to review HSAV’s historical performance to evaluate its potential future return on investment.

Similarly, when considering investments in the High Interest Savings ETF, it is important to analyze the return on investment. This ETF focuses on providing a high-interest rate similar to a savings account. The return on investment depends on factors such as the offered interest rates and underlying investment performance.

To make an informed decision, it is essential to compare the return on investment of different ETFs. This comparison helps in assessing which option offers the best potential for maximizing returns.

It is a well-known fact that historically, ETFs have provided competitive returns compared to traditional investment vehicles like mutual funds. This factor makes ETFs highly attractive for potential growth opportunities.


Liquidity is of utmost importance when investing in ETFs. It plays a critical role in the ease of buying or selling shares on the market. High liquidity enables easy entry or exit from positions without affecting prices. Increased participation from numerous buyers and sellers enhances the likelihood of finding a willing counterparty for a trade.

When ETFs exhibit high liquidity, trades can be executed swiftly and at prices that closely align with the underlying net asset value (NAV) of the fund. This rapid execution is vital for promptly accessing funds or making well-timed strategic investment decisions.

Conversely, low liquidity results in wider bid-ask spreads, which signify the price disparity between buying and selling an ETF. This can lead to higher transaction costs and potentially impact investment returns.

To evaluate liquidity, investors can examine metrics such as average daily trading volume and bid-ask spreads. Higher trading volumes and narrower spreads indicate greater liquidity.

Considering liquidity is essential when selecting ETFs, especially for frequent trading or when investing in specialized or less liquid asset classes.

Additional Resources

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Frequently Asked Questions

What is the difference between HSAV and CASH.TO?

The difference between HSAV and CASH.TO lies in their investment objectives and management fees. HSAV aims to generate modest capital growth by investing primarily in high-interest deposit accounts with Canadian banks, while CASH.TO invests in high-interest deposit accounts to boost monthly income for unitholders. HSAV.TO has an effective management fee of 0.18%, while CASH.TO has a management fee of 0.10%.

How do HSAV and CASH.TO compare in terms of yields and expenses?

HSAV.TO currently offers a yield of 5.00%, while CASH.TO has a gross yield of 3.03%. In terms of expenses, HSAV.TO has an MER of 0.12%, while CASH.TO has an MER of 0.10%. It’s important to note that these figures are subject to change.

What is the difference in liquidity between HSAV.TO and other high-interest savings vehicles?

HSAV.TO offers daily liquidity, allowing investors to buy or sell anytime throughout the trading day. This is an advantage compared to other high-interest savings vehicles that may have minimum holding periods or investment amounts.

What are the risk profiles of HSAV.TO and CASH.TO?

HSAV.TO has a low risk profile compared to other high-interest savings ETFs in Canada. On the other hand, CASH.TO is considered a better performing ETF. It’s important to carefully consider your risk tolerance before investing in any ETF.

Are there any investment minimums or lock-up periods for HSAV.TO or CASH.TO?

HSAV.TO and CASH.TO do not have any investment minimums or lock-up periods. Investors are free to buy or sell units of these ETFs as desired.

What are the recent fee adjustments made for HSAV and CASH?

The management charge for CASH has been reduced from 0.14% to 0.10%, while the rebate on HSAV’s annual management fee has been eliminated. This adjustment was made in response to recent increases in the gross yields of the ETFs.