Why to consider High Interest Savings Account (HISA) ETFs

By: Mark Shimkovitz

With all the market uncertainty lately, a lot of investors have been building up cash reserves. So what is the best thing to do when you are sitting on cash? A popular choice is HISA ETFs, which are a safe, high-yielding place to park your cash short term. Here are five reasons why I like them:

They are very safe: Although they aren’t CDIC insured, government regulators require that HISA ETFs put all their money into high interest savings accounts at tier one Canadian banks. So a HISA ETF is essentially HISAs at the banks.
They provide daily liquidity: Because there are no lock-up periods for HISA ETFs, they allow for daily liquidity. This means you can access some, or all of your money at any time.
Competitive yields: Compared to what the average investor will get on a cashable GIC or to putting money into a HISA directly at the bank, HISA ETFs provide a higher yield.
Interest rates are tied to the Bank of Canada rates: This means that as interest rates move up, which we expect they are going to, the HISA yields will move right up with them.
They pay interest monthly: The majority of HISA ETFs pay interest monthly, and for those who prefer compound growth through automatic re-investment, this is also available.

If you have any questions or want to learn more about HISA ETFs, don’t hesitate to contact me at (416) 777-4944 or mark.shimkovitz@raymondjames.ca.

Information in this article is from sources believed to be reliable, however, we cannot represent that it is accurate or complete. It is provided as a general source of information and should not be considered personal investment advice or solicitation to buy or sell securities. The views are those of the author, Mark Shimkovitz and not necessarily those of Raymond James Ltd. Investors considering any investment should consult with their Investment Advisor to ensure that it is suitable for the investor’s circumstances and risk tolerance before making any investment decision. Raymond James Ltd. is a Member - Canadian Investor Protection Fund.