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Search for an ETF or holding
Search for an ETF or holding
Updated 2mo ago.
Updated 2mo ago.
The money market consists of very short-term (less than one year) and very low-risk investments, such as Treasury bills and term deposits. Money market ETFs offer a return close to the Bank of Canada's policy interest rate.
CSAV.TO (CI High Interest Savings ETF) and CASH.TO (Global X High Interest Savings ETF) are popular money market ETFs in Canada. They invest in high-interest savings accounts at major Canadian banks. When the policy rate is 3.00%, these ETFs offer a similar yield with monthly distributions.
The money market is the ideal place for your emergency fund or money you'll need within a year. Your capital is essentially protected — no risk of loss — while earning a return higher than a chequing account. It's also useful for "parking" cash while you decide where to invest it.