Investing in Canada offers countless options for growing your wealth. One standout choice for many investors is the HISA ETF – a high-interest savings account exchange-traded fund. These ETFs allow you to enjoy the benefits of diversified portfolios, offering both safety and monthly interest income. Whether you’re looking to balance riskier investments or start your investment journey, HISA ETFs in 2025 are a compelling option.
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Let’s dive into the world of HISA ETFs, explore how they work, and examine some of the best funds to consider.
What Are HISA ETFs?
HISA ETFs are a type of exchange-traded fund that aims to replicate the returns of high-interest savings accounts. They’re often considered low-risk, fixed-income investments because they provide steady monthly interest payments. These ETFs are particularly appealing for those seeking liquidity, capital preservation, and consistent returns.
Unlike traditional high-interest savings accounts, HISA ETFs are traded on stock exchanges, such as the Toronto Stock Exchange, allowing for flexibility and competitive interest rates.
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Top HISA ETFs to Invest in for 2025
If you’re ready to add a HISA ETF to your portfolio, choosing the right one is essential. Here are some of the top-performing HISA ETFs in Canada for 2025:
1. Evolve High-Interest Savings Account Fund (HISA)
- Overview: Perfect for investors seeking short-term, liquid investments.
- Features: Low-risk fund offering exposure to high-interest savings accounts.
- Management Fee: 0.15%
- Annual Distribution Yield: 4.12%
- Distribution Frequency: Monthly
- Launch Date: November 2019
2. Horizons High-Interest Savings ETF (CASH)
- Overview: A low-risk fund suitable for registered accounts.
- Management Fee: 0.10%
- Annual Distribution Yield: 3.26%
- Net Assets: $4.6 billion
- Distribution Frequency: Monthly
- Launch Date: November 2021
3. CI High-Interest Savings ETF (CSAV)
- Overview: A great choice for generating fixed-income cash flow.
- Management Fee: 0.14%
- Annual Distribution Yield: 3.04%
- Net Assets: $6.3 billion
- Distribution Frequency: Monthly
- Launch Date: 2019
4. Purpose High-Interest Savings ETF
- Unique Features: Allocates assets to HISAs and Bank of Canada treasury bills for added security.
- Management Fee: 0.15%
- Net Yield: 3.16%
- Gross Yield: 3.32%
- Distribution Frequency: Monthly
5. iShares Premium Money Market ETF
- Overview: Focuses on liquidity, capital preservation, and short-term income.
- Management Fee: 0.12%
- Annual Yield: Varies
- Launch Date: 2008
- Distribution Frequency: Monthly for income, annual for capital gains
HISA ETFs vs. Cash ETFs
Both HISA ETFs and cash ETFs serve as low-risk investment options, but they differ significantly:
HISA ETFs
- Offer competitive interest rates.
- Provide easy access to funds.
- Pay monthly interest income.
- Not CDIC-insured, exposing funds to some market risk.
Cash ETFs
- Aim to replicate HISA returns but may involve market fluctuations.
- Can be bought or sold on the stock market, offering liquidity.
- Suitable for balancing higher-risk investments in your portfolio.
HISA ETFs vs. GICs: Which is Right for You?
Guaranteed Investment Certificates (GICs):
- Risk Level: Extremely low; principal is guaranteed.
- CDIC Protection: Up to $100,000.
- Limitations: Funds are locked until the term ends, and rates don’t adjust for inflation.
- Returns: Lower than other investment options.
HISA ETFs:
- Risk Level: Low but not risk-free.
- Flexibility: Funds can be accessed anytime through the stock market.
- Returns: Higher potential yield compared to GICs, but subject to market conditions.
- Liquidity: Instant trading makes it ideal for short-term goals.
Benefits of Investing in HISA ETFs
- Monthly Income: Receive steady monthly interest payments to offset riskier investments or meet short-term goals.
- Liquidity: Buy and sell anytime during trading hours on the Toronto Stock Exchange.
- Flexibility: Ideal for both short-term and long-term investment strategies.
- Low Fees: Competitive management fees make HISA ETFs cost-effective.
- Diversification: Spread your investments across multiple high-interest accounts.
Risks of HISA ETFs
While HISA ETFs are considered low-risk, they are not without drawbacks:
- Market Exposure: Returns are not guaranteed and fluctuate with market conditions.
- No CDIC Protection: Unlike traditional HISAs or GICs, funds in HISA ETFs are not insured.
- Fee Impact: Management fees can slightly reduce net returns over time.
Purchasing HISA ETFs in Canada
Major Canadian Banks
Most major banks like RBC, TD, and BMO offer their own high-interest savings funds or money market ETFs. However, you may not be able to purchase third-party HISA ETFs through these institutions. Instead, consider online brokerage platforms for access to popular options like CSAV and CASH.
Online Brokerages
Online brokerages such as Questrade or Wealthsimple often provide lower fees and broader access to HISA ETFs than traditional banks.
Final Thoughts: Why Consider HISA ETFs in 2025?
For Canadian investors seeking low-risk, flexible, and liquid investment options, HISA ETFs are a smart choice. With consistent monthly income, competitive yields, and accessibility on the stock market, these funds are perfect for balancing risk and achieving financial goals.
If you’re unsure about your investment strategy, consult a financial advisor. They can guide you on how to leverage HISA ETFs and other assets to meet your short- and long-term objectives. As always, conduct thorough research before making investment decisions.
Make 2025 your year to maximize returns and grow your portfolio with the best HISA ETFs in Canada!