High-Interest Savings Account ETFs to Choose from in 2026
The first step to purchasing an ETF is deciding which type of ETF you’d like to invest in. After that, you then need to pick the ETF. This is the tricky part. There are so many to choose from, and it can be challenging to know which is the right one.
Let’s take a look at some of the best HISA ETF options for 2025 that offer an attractive yield when you invest your cash balances to help offset your riskier investments or just to begin your investment journey.
Evolve High-Interest Savings Account Fund
This type of ETF is ideal for investors seeking liquid, short-term investments. It’s a low-risk fund that seeks exposure to high-interest savings accounts. One of the most popular features of this fund is its monthly distribution, allowing investors to receive regular payments.
The Evolve High-Interest Savings Account Fund has been around since November 2019. It has a cash asset class and can be invested in registered accounts. The management fee on this particular fund is 0.16%. The current annual distribution yield is 2.11%.
Horizons High-Interest Savings ETF
The Horizons High-Interest Savings ETF is another type of ETF to consider. Like many other ETFs, this one is also considered to be very low risk, and it can be invested in a registered account. Instead of being listed as an HISA ETF, though, this fund’s ticker is cash. It’s also relatively new, having been around since November 01, 2021.
Some important things to consider regarding this ETF are that the management fee is 0.10%, and the management expense ratio is 0.11%. As with other ETFs, net assets vary, but the current net assets are $6.54 billion and the ETF is traded in Canadian currency. The annual distribution yield is 2.11%, and the distribution frequency is monthly.
CI High-Interest Savings ETF
Another excellent low-risk ETF option is the CI High-Interest Savings ETF. It has been around since 2019 and is popular among investors seeking fixed-income ETFs that generate monthly cash flow. Its ticker is CSAV, which differs from the other ETFs we’ve discussed, and its total net asset value is $4.51 billion. The current management fee of this fund is 0.14%, with an MER of 0.15%. The net yield of this fund is 2.06%.
Purpose High-Interest Savings ETF
The purpose of a high-interest savings ETF has some unique features. It has no hidden transaction fees, no lock-up periods and no minimum balances. It has daily liquidity, and the interest earned is calculated daily but paid monthly. Unlike other funds, this one allocates assets to HISAs as Schedule 1 banks. However, they also allocate assets to Bank of Canada treasury bills (also referred to as government bonds) as long as the Canadian government backs them.
As for the ETF itself, the management fee is 0.15%. They have a gross yield of 2.36% and a net yield of 2.19%.
iShares Premium Money Market ETF
The iShares Premium Money Market ETFs aim is to provide liquidity, current income, and capital preservation. Many investors choose it for its exposure to high-quality securities, specifically short-term debt securities.
This ETF has a low-risk rating. The management fee is 0.12%, and the MER is 0.13%. It has been around since 2008 and is considered to be a Canadian money market fund. The income distribution is monthly, and the capital gains distribution is annual.
Horizons 0-3 Month T-Bill ETF
What’s interesting about the Horizonz 0-3 Month T-Bill ETF is that it’s a low-risk ETF that invests in short-term T-Bills issued by the Government of Canada. In fact, it’s also backed by the Canadian Government. Since this fund involves government T-Bills, it’s much lower risk than other interest-bearing investments.
Another intriguing aspect of this fund is that it can be traded at any time. It’s also expected to earn more each month than other investments, such as bank deposits and cashable GICs. Here are some facts regarding the fund itself.
This is a new fund since it has an inception date of April 13, 2023. The total net assets are $2.7 billion, and the MER is 0.11%. The distribution frequency for this ETF is monthly, the annual yield is 2.50%, and the management fee is 0.10%.
Purpose Cash Management Fund
Purpose Investments manages the Purpose Cash Management Fund. It’s meant to be a short-term investment vehicle to help you grow your wealth. It focuses on high-quality money market investments and offers competitive yields. Like many other funds, it’s actively managed and provides daily liquidity. The interest rate is calculated daily and paid monthly.
This fund currently has $3.06 Billion in assets under management. The management fee is 0.20%, the gross yield is 2.55,% and the net yield is 2.33%.
Ninepoint High Interest Savings Fund
The Ninepoint High Interest Savings Fund is another type of investment vehicle that investors use to get a better rate of return. It has no term commitments, daily liquidity, and is simple to add to any portfolio. This fund specifically invests in high-interest savings accounts offered by Schedule 1 banks in Canada,, as well as other high-quality market securities.
For the fund, the annualized distribution yield is 2.49%. It has an inception date of August 6, 2010 and has a minimum initial investment of $500. The minimum subsequent investment amount is $25.
Horizons USD Cash Maximizer Corporate Class ETF
While the Horizons USD Cash Maximizer Corporate Class ETF is also considered to be low risk, it’s a little different than the other Horizon ETFs. This ETF actually mostly invests in US-dollar accounts at Canadian chartered banks. As a result, it earns a higher interest rate than traditional savings accounts. Like many other funds, it can be sold at any time during the trading day and doesn’t have any minimum holding periods or trading amounts.
This fund is also not expected to make taxable distributions. This means that it’s likely to enhance the tax performance of this fund compared to others. With that, though, the main goal of this fund is to seek modest capital growth.
It holds net assets of $773,109,461 and has a management fee of 0.18%. The MER is 0.20%. It also has a gross yield of 3.32% and an inception date of July 2, 2020.
HISA Vs Cash ETFs
As an investor, it’s important to know the difference between High-Interest Savings Accounts and Cash ETFs. There’s actually quite a large difference. HISAs are deposit accounts that offer more competitive interest rates than traditional savings accounts while still allowing you to use the funds whenever you like. Cash ETFs are investment funds that aim to replicate the returns that you would see from a HISA. That said, neither of these options is good or bad. They just each have their own positives and negatives.
The reason that many people choose to use HISAs is that they offer higher returns, are simple to use, and allow access to the funds at any time. They are a popular choice for those who don’t want to risk their money and also intend to use it. That said, though, the returns you get from a HISA are smaller than those from other investment accounts. They also tend to charge fees and have minimum balance requirements.
Cash ETFs are beneficial to investors because they can maximize monthly income, as returns can be higher than those of a HISA, and they also offer liquidity, as they can be bought and sold anytime on the stock market (in Canada, this would be the Toronto Stock Exchange). You may not have access to the funds instantly as you would with a HISA, but it’s usually only a few business days.
The one thing you have to remember with Cash ETFs, though, is that they aren’t guaranteed returns since there are constant market fluctuations. What you earn and what you lose depend on the market, which can be volatile. That said, when you invest, you can choose your risk tolerance, how much you wish to invest, and where you want to allocate the funds.
What are Cash Alternative ETFs?
Cash Alternative ETFs are also considered an alternative to High-Interest Savings Account ETFs. Their goal is to provide returns similar to those of short-term fixed-income securities. They do this by maintaining a diversified portfolio of high-quality, short-duration instruments. The idea behind this type of ETF is to help investors who are looking for liquidity, capital preservation, consistent cash flow, and low-risk funds.
Online Brokerages to Purchase ETFs
In Canada, there are a variety of online brokerage firms that allow you to invest in ETFs. Most people think these types of investments have to be done through large Canadian banks, but they don’t.
In fact, smaller private banks and credit unions also allow you to purchase these. It’s also important to keep in mind that no matter where you purchase an ETF, these funds aren’t covered by the CDIC or any other government deposit insurer.
If you’re interested in using an online brokerage to start investing in the best HISA ETFs Canada has to offer, then take a look at the online brokerage firms listed below.
Interactive Brokers Canada
Interactive Brokers is a popular online brokerage in Canada that allows trading in a variety of securities, including ETFs. Plus, since the point of investing is to earn money from interest and other sources, low fees are a bonus. They also have other great features, including the ability to invest globally in stocks and other securities.
One of the best things about using Interactive Brokers is the education it provides on investing. Since values change frequently, it’s important to do your research before you invest capital into securities. They give you access to a variety of information, including past performance, performance data, annualized historical yields, and more.
When it comes to Interactive Brokers, they pride themselves on being a broker that you can trust. They have a NASDAQ listing as IBKR, $17.5B in equity capital, are 72.4% privately held, have $12.4B in excess regulatory capital, over 3.34M client accounts, and average $ 3.52M in daily revenue trades.
Qtrade
Another popular online brokerage that has low trading fees is Qtrade. One of the largest draws to them is the no-commission ETFs. Not only that, they offer industry-leading tools to help you educate yourself on the best trades and how to earn money with investing. They’ve also been ranked Canada’s #1 platform 28 times in the past 18 years. This platform can be used online or using your mobile device.
Another cool fact about Qtrade is that they’ve been ranked as the $1 online broker for client services 8 times in the last 6 years. They even offer different tools and investment options based on your experience. This can help you with anything from income taxes payable to service fees and even expenses payable.
When it comes to ETFs, Qtrade has over 100 commission-free ETFs. However, in order for it to be commission-free, you do have to hold it in your account for a minimum of one business day. Other than that, the fee is $8.95 per trade with an Investor account and $6.95 per trade with an Investor Plus account.
Questrade
Questrade also offers great options for investing. If you’re interested in self-directed investing, you can start trading with $0 commissions. For those who prefer a more hands-off approach and a portfolio manager, you can get a pre-built portfolio with management fees starting at just 0.25%. The fee is 0.20% for amounts of $100,000 or over.
Another great feature of Questrade is that it is 100% Canadian-owned. What’s even more amazing is that they have been in the market for 26 years. They currently have $50 billion in Assets Under Management and offer a variety of securities besides ETFs, including Cash Deposits, also known as Cash Investments.
If you decide to use this platform, you don’t have to be a certain type of investor. They have services for retail investors and more. Plus, they offer different accounts to suit your investment needs. While you can’t predict events, Questrade makes a particular point of giving you the tools you need to make the most informed decisions possible.
Wealthsimple Trade
Another low-free and no-commission trading platform is Wealthsimple Trade. They offer a wide variety of self-directing investing options and tools for every trade level. No matter what trade account you have,, there are $0 commissions on all accounts. That said, there are 3 different account options: Core, Premium and Generation. Each of these different accounts has its own unique features.
Core accounts are for accounts with as little as $1 in assets. Along with $0 commission stock trading, they also charge 0.5% in management fees on managed investing accounts,, and you can earn 1.75% on your chequing account balance. Once you reach $100,000 in assets, these benefits will change because you will be upgraded to the Premium account.
The Premium account offers 0.4% management fees on managed investing accounts. You also get a rate of 2.25% on your chequing account balance. Some added features you get with this account include access to financial advice, up to 3 partner awards (depending on the assets you hold), complimentary USD accounts, and reduced options trading and crypto fees. You’ll then be upgraded to Generation when you reach $500,000 in assets.
The Generation account includes all the benefits you get with the Premium account, plus some extras. You can get a rate of 0.2%-0.4% on managed investing accounts, earn 2.75% on your chequing account balance, and access financial advice and 3 partner rewards. Those with assets exceeding $200,000 will also have access to rewards from trusted Wealthsimple partners.
That said, this is really just the surface of what Wealthsimple offers. They have a variety of different products as well as investment options. They also have readily available support and access to a variety of educational tools.
GIC Vs HISA
When it comes to other types of investing, instead of High-Interest Deposit Accounts, or ETFs, you have many options, but two of these options are Guaranteed Investment Certificates (GICs) and High-Interest Savings Accounts (HISAs). What exactly are the differences? Well, let’s take a look.
GICs
GICs, also known as Guaranteed Investment Certificates, are investments that are considered low risk because they offer a guaranteed return over a fixed period of time. These types of investments are most commonly issued by deposit-taking institutions, including trust fund companies, banks, and credit unions, and are protected by CDIC insurance. Investors typically use these to preserve capital.
The thing about these types of investments, though, is that your funds are locked. You’re unable to access these funds without a penalty. If the funds are left in the account, then you can collect your return at the end of the term.
Another thing to consider is the rate of return. GIC rates are much lower than other types of investments. Once you lock into a GIC, even if they start to offer higher interest rates, your interest rate won’t change since you were locked in at the current prevailing interest rates. This means you could be earning less interest than inflation. How they pay interest depends on the type of GIC you invest in and its term. They could either pay out annually or monthly.
When it comes to investing in GICs, there are a few different asset classes of ETFs to choose from, including:
- Market Growth GICs
- Cashable GICs
- Non-Cashable GICs
- Fixed Rate GICs
- Escalator GICs
- Variable Rate GICs
HISAs
Like GICs, High-Interest Savings Accounts are a good fit for short-term Canadian investors looking to use the funds within 1-5 years. With HISAs, you can earn a higher interest rate on your funds without locking them in. You have access to these funds whenever you want to use them. With that in mind, though, the rate of return is very low. If you want to save your money long-term, then a HISA isn’t always the way to go.
Like GICs, any funds that are in a High-Interest Savings Account are protected by the CDIC up to $100,000. In the case of a bank failure, you won’t lose your funds.
When it comes to earning interest on your HISA, the amount you receive is based on how much is in your account and the rate you agreed to. This rate is then calculated daily and then paid out monthly to the entire balance of your account. It’s important to note that just because an account is called an HISA doesn’t mean it has a good rate. Do your research to find the best rate you can.
Should HISA ETFs be Held in TFSAs?
While there are many different accounts you can hold your HISA ETFs, not every account will be a good fit. Your choices are:
- RESP savings
- FHSA accounts
- Non-registered accounts
- RRSPs
- TFSAs
However, with these accounts, you need to consider your limits. You only have a limited amount of FHSA contributions, RRSP contributions, and contribution room for your TFSA holdings. That said, if you’re looking to earn funds tax-free while still having access, then a TFSA is your best bet.
Since HISA ETFs generate interest income, holding them in a TFSA avoids taxation on that income. However, you do only have limited room, so you do need to keep that in mind. If you do hold it in a non-registered account, though, you would need to pay income tax using your marginal tax rate for the amount determined on your T5 slip.
How HISA ETFs are Income Taxed
As we previously mentioned, HISA ETFs are a great way to save money, but they aren’t always the most tax-efficient. In fact, they’re taxed as interest income unless they’re in a tax-saving account. If they’re in an RRSP, you have to be concerned about withholding taxes if you withdraw any funds.
How Did the OSFI Rule Change Have an Impact?
The Office of the Superintendent of Financial Institutions rule change, often referred to as the OSFI rule change, impacted HISA ETFs. Because they now have deposit-taking banks, HISA ETF deposits are treated as 100% run-off unsecured wholesale funding, so the yields paid on these have been reduced. This wholesale deposit classification now means that you earn less on HISA ETFs than you used to.
Are ETFs Covered if a Brokerage Fails?
If a brokerage fails, then your ETFs are covered. This is because, according to liquidity coverage requirements, a failed brokerage can’t use your assets to pay off its own accounts. They are legally required to keep your funds away from theirs. Your funds will then be transferred from the failed brokerage to a healthy brokerage.
Also, in Canada, cash holdings are covered by the Canada Deposit Insurance Corporation (CDIC). Since the CDIC doesn’t cover investments, brokerages with CIRO oversight have CIPF coverage.
How Do You Purchase an HISA ETF?
Purchasing most HISA ETFs is pretty simple. All you have to do is open a brokerage account and then fund it. Once that’s done, you just make a purchase of ETF units like you would with stocks. You can then actively manage this yourself.
However, if you’re looking for help, a financial advisor can help. Generally speaking, they can provide financial investment advice and help you make the right investment choice for you.
Do Yields Fall When Rates Drop?
When interest rates drop in Canada, one thing you have to worry about is yield compression. This occurs when interest rates fall, reducing the net yields paid to investors. These policy rate cuts are posing reinvestment risks for investors. However, that doesn’t mean that investing isn’t worth it.
HISA ETFs Vs. Ultra-Short Bond ETFs
When you’re looking at investing, there are so many different options to choose from, including HISA ETFs and Ultra-Short Bond ETFs. While they’re both great investment options, they do have some differences.
HISA ETFs: These have no counterparty exposure risk since they sit in high-credit bank deposit accounts. The return rates coincide with the Bank of Canada interest rates, and the payouts are treated like interest income. They’re also pure cash proxies even though they trade on major exchanges.
Ultra-Short Bond ETFs: These types of investments carry a minor credit risk as well as a price fluctuation risk if the interest rate moves, and they offer potential capital appreciation if interest rates fall. They generate a mix of interest income and capital gains and trade on major exchanges. They’re made up of different bonds, including short-term government bonds.
Using HISA ETFs for a Down Payment
When it comes to saving money for a down payment horizon or even just looking for some emergency fund parking, there are many different ways you can choose to hold your money. HISA ETFs are just one of these ways since the funds aren’t always liquid right away due to the settlement period. It can take a few business days before you’re able to gain access to your funds.
This is why many people choose to invest their funds in different accounts using different strategies. These include things like DRIPs (Dividend Reinvestment Plans), GICs and the laddering strategy, and even traditional HISAs with promotional interest rates. Some others also choose to hold their funds in more than one bank, with options like:
- The Big Canadian Banks
- Neo Financial
- Simplii Financial
- Tangerine Savings Account
- EQ Bank
The bank account you park cash in also makes a difference. This is why holding Canadian HISA ETFs and other investments in both non-taxable and taxable accounts makes such a difference. So does having a mix of high-risk and low-risk investments.
USD HISA ETFs and Currency Conversion Costs
If you choose to purchase HISA ETFs in USD, then there are going to be costs that you have to consider. Often these costs are between 1% and 3% and are embedded into the costs of the ETF already. However, many investors choose to use Norbert’s Gambit in order to reduce some of these costs.
With Norbert’s Gambit, you purchase one ETF that’s either in Canadian dollars or USD and has an alternative currency version of the same ETF. You make the purchase in one currency and sell in the other, reducing your currency conversion costs and even your US dollar account fees.
Even if they don’t have a fund with a good bid-ask-spread that you’re looking to invest in, you can still use this method for currency conversion and then invest in other accounts after taking into account their premium to net asset value, fund facts documents and simplified prospectus.
Other Fees to Check Besides the MER
When it comes to HISA ETFs, there are plenty of fees that you need to consider besides just the MER. These include:
- ETF costs
- Direct deposit fees
- ECN fees
- Account transfer fees
- Fees on RRIF withdrawals
However, where you choose to invest will determine your total fee costs. Many brokerages have commission-free ETF lists, saving you money when you purchase those. Others have limited orders, which can make selling difficult and cost you more money.
