Best Cash ETFs in Canada: HISA ETFs vs Traditional GICs
If you're looking for a safe place to park your cash and earn high interest, High Interest Savings ETFs (HISA ETFs) are often the best choice. Rather than locking your money in a GIC or accepting the abysmal rates at traditional banks, these ETFs offer yields over 2% (CAD) and 3.5% (USD) with the flexibility to buy and sell any time. If you’d rather keep your cash in a bank account, start by comparing the current HISA promo rates from Wealthsimple, EQ Bank, Tangerine and Simplii — promos can pay more for a few months, but the rate drops when they expire.
1. The Core CAD HISA ETFs
The most popular cash ETFs pool investor money and deposit it into high-interest savings accounts at major Canadian banks. They take a tiny management fee and pass the interest directly to you. They are functionally identical.
| Ticker (Provider) | Net Yield* | MER | Fund Size |
|---|---|---|---|
| CASH.TO (Global X) | 2.09% | 0.11% | $6.6B |
| PSA.TO (Purpose) | 2.29% | 0.17% | $3.2B |
| CSAV.TO (CI) | 2.02% | 0.15% | $4.4B |
*Annualized distribution yields as published by the provider (most recent distribution × 12 ÷ NAV), net of fees. Yields fluctuate with Bank of Canada interest rate announcements. Data as of October 2026.
2. The Tax-Efficient Option: Accumulating ETFs
Normally, HISA ETFs pay out interest monthly. In a non-registered (taxable) account, interest income is taxed at your full marginal rate—which hurts.
Accumulating ETFs like HSAV (Global X) and CASH.L (Global X) solve this by reinvesting the interest directly back into the fund's unit price instead of paying it out in cash. When you sell, your profit is treated as a capital gain, which is only 50% taxable.
- HSAV: Has an MER of 0.20%. However, because Global X suspended new subscriptions, it often trades at a premium to its Net Asset Value (NAV). If you buy at a premium and it collapses, you can lose money.
- CASH.L: A newer alternative from Global X (0.10% Mgmt Fee) designed to accumulate like HSAV but without the premium issue. It automatically reinvests and consolidates distributions into the NAV.
3. The Safest Option: T-Bill ETFs
If you are uncomfortable with the fact that HISA ETFs are not explicitly CDIC-insured, you can buy Treasury Bill (T-Bill) ETFs. These hold short-term government debt, making them practically risk-free.
- CBIL.TO (Global X 0-3 Month T-Bill ETF): Yields roughly 2.30% with an MER of 0.11%. Backed by the Canadian government.
4. Where to Park USD (USD Cash ETFs)
If you hold US dollars (perhaps after executing Norbert's Gambit) and want to earn interest while waiting to buy stocks, these are your best options. Make sure you buy the TSX listings in a USD account to avoid currency conversion fees!
| Ticker | Yield | MER | Notes |
|---|---|---|---|
| HISU.U (TSX) | 3.71% | 0.16% | USD HISA ETF. |
| HSUV.U (TSX) | 3.57% | 0.20% | USD Accumulator. |
| PSU.U (TSX) | 3.80% | 0.17% | USD HISA ETF. |
| UBIL.U (TSX) | 3.76% | 0.13% | USD T-Bill ETF. |
| SGOV (NYSE) | 3.66% | 0.09% | US-listed T-Bills. |
5. True Yield Calculator
Not all yields are created equal. Pick an ETF and your account type below to see exactly how MERs and Canadian taxes affect your true bottom-line return. You can also customize the numbers if yields change.
ETF & Account Tax Calculator
Enter the provider's published yield — already net of fees.
Combined Federal + Provincial rate.
6. HISA ETFs vs Traditional GICs
| Feature | HISA ETFs | Traditional GIC |
|---|---|---|
| Liquidity | Excellent. Sell any time the market is open. | Locked. Money cannot be touched for the term. |
| Interest Rate Risk | Variable. If the Bank of Canada drops rates, the yield drops. | Fixed. You are guaranteed the rate for the term. |
| CDIC Insurance | Not directly insured. | Insured up to $100,000. |
Still deciding where to put your money? Head back to the iCanInvest homepage for our full guide to low-cost investing in Canada, including TFSA and RRSP strategies.
Is it safe?
While cash ETFs don't have direct CDIC insurance like a retail bank account, they are considered exceptionally low risk.
For standard HISA ETFs (like CASH.TO and PSA), the money is held entirely in cash deposits at major Canadian banks. Their share prices are designed to hover around $50, slowly ticking up a few cents every day as interest accrues, and resetting at the end of the month when the interest is paid out to your account.
T-Bill ETFs (like CBIL or UBIL.U) are arguably even safer, as they hold government-backed Treasury Bills instead of bank deposits. Meanwhile, Accumulating ETFs (like CASH.L) function similarly to HISA ETFs but never "reset" their price at month-end, as they continuously reinvest the interest to grow the share price over time.
Cash ETF FAQs
Is CASH.TO interest or dividends?
Interest. CASH.TO distributes the interest it earns on bank deposits as monthly distributions, and the CRA treats these as interest income — fully taxable at your marginal rate in a non-registered account. It does not pay eligible dividends.
CASH.TO vs PSA.TO — which is better?
As of October 2026, PSA.TO has the higher published net yield at 2.29% versus 2.09% for CASH.TO, despite PSA.TO’s higher MER (0.17% vs 0.11%). The funds are functionally identical — both hold cash deposits at major Canadian banks. CASH.TO is the larger fund at $6.6B versus $3.2B for PSA.TO.
Do cash ETF yields already include the MER?
Yes. The yields shown on this page (for example, CASH.TO at 2.09%) are the providers’ published annualized distribution yields, which are net of fees. The MER has already been deducted before any distribution reaches you.
Are cash ETFs CDIC insured?
No, not directly. HISA ETFs hold cash deposits at major Canadian banks but do not carry direct CDIC insurance. If you want government backing, CBIL.TO (yielding about 2.30%) holds Canadian Treasury Bills instead of bank deposits.
Cash ETF vs GIC — which is better?
It depends on what you value. Cash ETFs offer excellent liquidity — you can sell any time the market is open — but yields are variable and drop when the Bank of Canada cuts rates. GICs lock in a fixed rate and are CDIC-insured up to $100,000, but your money is locked away for the full term.
How to Buy Cash ETFs for Free
To actually benefit from these cash ETFs, you MUST buy them in a commission-free brokerage. If you pay $9.99 to buy it at a big bank, you destroy your interest earnings. See our brokerage comparison to find the best place to buy cash ETFs in Canada.
Open a Wealthsimple Account & Claim $25Use code AEXLPA to get your bonus. Takes 5 minutes to set up.