Investing · Parking cash
GIC vs bond ETF vs HISA ETF: where to park cash
Three products compete for every idle dollar, and the internet compares them on yield alone. The honest comparison runs on three axes: what it pays today (live numbers below), what happens when rates move, and the one nobody reads — whether it’s actually insured. Only one of the three is.
The three vehicles, honestly compared
| Vehicle | Insurance | Yield today | Liquidity | If rates fall | Best for |
|---|---|---|---|---|---|
| GIC | CDIC-insured to $100,000 per category (or provincial equivalent) — principal guaranteed | 3.60% (1-yr) to 4.10% (5-yr) — locked the day you buy | Locked to maturity (cashable versions pay less) | Nothing changes — you keep your locked rate either way | Money with a date on it: 1–5 years out, amount known |
| Bond ETF | Not insured — market-priced fund; CIPF covers broker failure only, never value | YTMs ~3.2%–3.9% (aggregate 3.67%) — but the price moves daily | Sell any trading day, T+1 settlement | Prices RISE when rates fall, fall when they rise — duration cuts both ways | Portfolio ballast you rebalance against, not dated spending money |
| HISA / cash ETF | NOT CDIC-insured — CDIC’s exclusion list names ETFs explicitly | Net ~1.8%–2.3% today — floats with the overnight rate, resets administratively | Sell any trading day, T+1 settlement | Yield follows the Bank of Canada down (or up) within days | Brokerage cash awaiting deployment — weeks to months, not years |
GIC rates from our daily pipeline (last June 13, 2026); bond YTMs and cash-ETF yields verified at providers June 10, 2026. Full product tables: GICs · bond ETFs · cash ETFs below.
The six cash ETFs, side by side
Three species share the label: deposit funds (bank accounts in a wrapper), T-bill funds (federal paper), and money-market funds (which add corporate credit). Net yield is the number that matters — Providers advertise the gross rate their deposits earn; you receive that minus the MER. CASH's gross rate is even set administratively on a dated schedule, not by the market. .
| Fund | MER | Yield | What it holds | AUM |
|---|---|---|---|---|
| CASH Global X Bank deposits | 0.11% | Net distribution yield 1.80% (Jun 9, 2026) · gross deposit rate 2.16% (set Apr 17, 2026) | High-interest deposit accounts at Canadian chartered banks (NBC, Scotiabank, CIBC named) | $6.7B |
| PSA Purpose Bank deposits | 0.17% | Net yield 2.19% · gross 2.36% (both Jun 9, 2026) | Deposit accounts at Schedule I banks + short-term Canada T-bills | $4.2B |
| CSAV CI GAM Bank deposits | 0.15% | Net yield 2.07% · gross 2.22% (both Jun 8, 2026) | Deposit accounts (NBC, BMO, Scotiabank, CIBC named) + Canadian T-bills | $4.7B |
| HISA Evolve Bank deposits | 0.17% | Net yield 2.13% · gross 2.23% (both Jun 9, 2026) | High-interest deposit accounts at Canadian banks | $2.7B |
| CBIL Global X Government T-bills | 0.11% | Distribution yield 1.98% (Jun 9, 2026) · YTM 2.26% gross · avg term 0.12 yr | 100% Government of Canada T-bills under 3 months (A-1+ credit) | $2.3B |
| ZMMK BMO ETFs Money market (incl. corporate paper) | 0.13% | Distribution yield 2.29% · current yield 2.34% (Jun 9, 2026) · YTM 2.49% gross | T-bills, bankers’ acceptances AND corporate commercial paper (<365 days, avg <90) | $5.7B |
All figures from provider pages, verified June 10, 2026. Yields float with the Bank of Canada overnight rate. USD version exists (UBIL.U, 3.48% on US T-bills) — a separate decision. HSAV (no-distribution, corporate-class) and CMR flagged for a future pass, not guessed at.
The insurance line nobody reads
Start where the marketing doesn’t. A GIC is a deposit — CDIC insures it to $100,000 per category per institution (credit unions carry provincial equivalents, often unlimited); the coverage planner maps yours. A HISA ETF is a fund: CDIC’s coverage page lists ETFs by name among products that are not eligible, and Global X’s own disclosure says there “can be no assurances” the fund maintains a constant NAV. The distinction has never actually burned anyone — these funds have held their $50 NAVs — but “hasn’t happened” and “guaranteed” are different words, and a retiree’s cash tier deserves the second one. The Canadian Investor Protection Fund covers up to $1M per account category if your BROKERAGE fails and assets go missing — it never protects against a fund losing value. protects the account, not the value.
Today’s actual numbers
With the overnight rate in low-2% territory, the yield race isn’t close: cash ETFs net ~1.8%–2.3%, today’s best direct HISA pays 2.85% (Saven Financial, CDIC-insured, from our live table), and locked GICs pay 3.60% / 3.90% / 4.10% at 1, 2 and 5 years. Bond ETFs quote the highest forward yields (YTMs around 3.7%) — but they are not parking spots: an aggregate fund can lose more in a bad quarter than it yields in a year. The cash-ETF pitch is convenience, not yield: same-account parking at a brokerage, no rate-chasing, no new logins — worth real money in an RRSP between trades, worth questioning as a long-term savings strategy.
Match the vehicle to the date
The decision is a calendar, not a product review. Weeks to months (brokerage cash between investments, an imminent purchase): HISA ETF or direct HISA — liquidity wins, the yield difference is pocket change. One to five years, date known (car, renovation, tax bill, next year’s spending in retirement): GIC, or a ladder of them — today’s locked rates beat the floating alternatives and can’t be taken away by a rate cut. No date — portfolio ballast: that’s the bond ETF’s job, sized by risk tolerance rather than spending plans. Retirees running the three-tier system in our cash strategy will recognize this as tiers one and two — the framework holds.
Frequently asked questions
Are HISA ETFs like CASH and PSA covered by CDIC?
No — and this is the single most misunderstood fact in the category. CDIC’s own coverage page lists “Exchange Traded Funds (ETFs)” among products that are not eligible, and the providers say it themselves: Global X’s CASH page states the fund “is not covered by the Canada Deposit Insurance Corporation… There can be no assurances that the money market fund will be able to maintain its net asset value per security at a constant amount.” The underlying bank deposits exist, but you own fund units, not deposits. CIPF protects you if your brokerage fails — it never guarantees the fund’s value. If insurance is the point, a direct HISA or GIC is the instrument; map your coverage with the CDIC planner.
GIC or bond ETF for money I need in 3 years?
For dated money, run today's numbers: our live GIC table pays 3.90% (2-yr) and 4.10% (5-yr), guaranteed, versus aggregate bond-ETF YTMs around 3.7% with real price risk in between. The GIC frequently wins outright on yield AND certainty. The bond fund earns its place only if you need daily liquidity, want gains if rates fall, or you're holding ballast inside a portfolio — the full comparison lives on our bond ETF guide, and a GIC ladder handles the multi-year version.
CASH vs CBIL vs ZMMK — what’s actually different?
Three different things under one “cash ETF” label. Deposit funds (CASH, PSA, CSAV, HISA) hold high-interest accounts at big banks — yields reset administratively (CASH’s current gross rate was set April 17, 2026). T-bill funds (CBIL) hold Government of Canada paper — the only credit on the list backed by the federal government, though the fund itself is still uninsured. Money-market funds (ZMMK) add bankers’ acceptances and corporate commercial paper — a notch more yield (2.49% gross YTM) for a notch more credit exposure. The net yields differ by basis points; the underlying credit is the real distinction.
Why is my HISA ETF yielding less than my actual savings account?
Two reasons. First, the published gross rate (~2.2%) is before the fund's MER — net yields run ~1.8%–2.2%. Second, promotional retail rates can simply beat institutional deposit rates: today's best direct HISA on our live table pays 2.85% (Saven Financial) — CDIC-insured, no MER. The ETF's advantages are convenience inside a brokerage account (especially registered accounts) and no rate-chasing: it's where idle brokerage cash should sit, not necessarily where savings should live.
Which account should cash sit in?
Interest is fully taxed at your marginal rate, so meaningful cash positions belong in a TFSA or RRSP/RRIF when room allows — all six funds on this page are registered-eligible, and GICs come in registered versions at most issuers. In a taxable account, large cash yields create fully-taxed income; that’s where the corporate-class structure (HSAV — which pays no distributions and accrues in price instead) gets interesting, though we haven’t verified it yet and it deserves its own treatment. The asset-location guide maps the order.
How current is this page?
Cash-ETF figures verified at provider pages on June 10, 2026; GIC and HISA comparison rates flow from our daily pipeline (last June 13, 2026); bond YTMs verified the same day on our bond ETF guide. Cash-ETF yields float with the Bank of Canada overnight rate — currently low-2% gross — so treat every yield here as a snapshot. Flagged for a future pass rather than guessed: HSAV (corporate-class) and CMR. See our methodology.
This page is for educational purposes only and is not investment advice. Cash-ETF facts verified at provider pages on June 10, 2026; GIC/HISA rates refresh through our daily pipeline (last June 13, 2026); all yields float and are point-in-time. Insurance statements quote CDIC and provider disclosures directly. We exclude products we could not verify at the source. See our methodology.