US EditionCash ETFs offer yields and liquidity for funds on the sidelines, finance experts say
Cash exchange-traded funds offer modest yields and liquidity, appealing to both older investors seeking income and younger savers, with some funds among BMO's top sellers last year.
- On Nov. 25, 2025, experts said demand for cash ETFs is growing among investors old and young, with Philip Petursson noting they offer modest yield while keeping funds liquid.
- For short-term savers, investors old and young use cash ETFs for short-term goals, with older investors seeking safety and younger clients saving for homes, renovations, and education.
- Many cash ETFs operate by investing in high-interest savings accounts or low-risk money-market securities, paying monthly interest tied to Bank of Canada borrowing rates.
- A key trade-off is that cash ETFs lack Canada Deposit Insurance Corp. coverage, which guarantees up to $100,000, and can drag on portfolios long term despite preserving capital.
- For investors needing cash within 12 months, interest paid by cash ETFs falls when Bank of Canada rates drop, yet a BMO Global Asset Management money-market ETF has been a top seller over the past year.
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10 Articles
Cash ETFs offer yields and liquidity for funds on the sidelines, finance experts say
It’s a dilemma for many investors: you want to have cash set aside to hop on investment opportunities that might arise. But you also don’t want the money sitting in your portfolio not collecting any return. Enter cash exchange-traded funds.
Cash ETFs offer yields and liquidity for funds on the sidelines, finance experts say
It's a dilemma for many investors: you want to have cash set aside to hop on investment opportunities that might arise. But you also don't want the money sitting in your portfolio not collecting any return. Enter cash exchange-traded funds.
Cash ETFs offer yields and liquidity for funds on the sidelines, finance experts say
It's a dilemma for many investors: you want to have cash set aside to hop on investment opportunities that might arise. But you also don't want the money sitting in your portfolio not collecting any return. Enter cash exchange-traded funds.
Cash ETFs offer yields and liquidity for funds on the sidelines, finance experts say
It's a dilemma for many investors: you want to have cash set aside to hop on investment opportunities that might arise. But you also don't want the money sitting in your portfolio not collecting any return. Enter cash exchange-traded funds.
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