CASH.TO vs HISA.TO: Which High-Interest Savings ETF is Best?

Over the past few years, High-Interest Savings Account (HISA) ETFs have become the darling of Canadian investors. As interest rates climbed, these ETFs offered a simple way to secure yield on cash balances without locking funds inside a GIC. In this review, we compare Canada's market leader Horizons High Interest Savings ETF (CASH.TO) against major competitors Evolve High Interest Savings Account Fund (HISA.TO) and CI High Interest Savings ETF (CSAV.TO).

How High-Interest Savings ETFs Work

Unlike traditional ETFs that buy stocks or bonds, HISA ETFs pool investor money and deposit it into high-interest savings accounts at major Canadian chartered banks (like National Bank, CIBC, and Scotiabank). Because the ETF buys in bulk, they negotiate far higher interest rates than individual retail customers can access, passing the yields back to investors in monthly distributions.

The Competitors Compared (2026 Data)

Key Considerations for Investors

1. Security and CDIC Insurance

The most important nuance of cash ETFs is **deposit insurance**. Traditional bank savings accounts are covered by the Canada Deposit Insurance Corporation (CDIC) up to $100,000 per institution. **HISA ETFs are not covered by CDIC insurance.** However, because the cash is deposited inside major Tier-1 Canadian banks, the probability of capital loss is extremely low. If a major bank defaults, Canada has wider economic problems, but it is still a risk factor to keep in mind.

2. The "OSFI" Regulatory Shift

Canada's bank regulator (OSFI) recently adjusted banking rules, forcing banks to treat HISA ETF deposits as retail deposits with lower liquidity status. This resulted in banks lowering the interest rates they pay to the ETFs, trimming net yields by about 0.50% across the board. Despite this regulatory compression, cash ETFs still comfortably outperform traditional brick-and-mortar chequing accounts paying 0.05%.

3. Monthly Price Fluctuations

Cash ETFs have a unique trading cycle. The share price starts every month at a baseline of **$50.00**. As interest accrues daily throughout the month, the price steadily climbs to around **$50.18 - $50.22**. At the end of the month, the accrued interest is paid out as a cash dividend, and the stock price resets back to exactly **$50.00**. This makes liquidity forecasting easy, but remember to avoid panic if you see your stock price drop slightly on the ex-dividend date!

The Verdict

For most Canadian self-directed investors, **CASH.TO** remains the preferred vehicle due to its slightly lower MER, superior volume, and tight bid-ask spreads. It represents an exceptional, liquid place to store emergency cash, short-term savings, or pending dry powder while awaiting stock market buying opportunities.