CASH.TO vs PSA vs CBIL: The Best Canadian HISA ETF for 2026
Cash sitting in a brokerage account earning zero interest is one of the most avoidable drags on a Canadian portfolio. HISA and T-bill ETFs like CASH.TO, PSA, and CBIL let that idle balance work as hard as the equity side, with same-day liquidity and no lock-in period.
Why cash ETFs exist in the first place
Most Canadian brokerages pay 0% on the uninvested cash in a TFSA, RRSP, or non-registered account. That is a silent tax on anyone waiting to deploy contributions, rebalancing proceeds, or a dividend distribution. Cash ETFs solve this by pooling investor money into overnight deposits at Schedule I banks or short-term Treasury bills, then paying out the interest as a monthly distribution.
The three biggest by assets are CASH.TO (Global X High Interest Savings ETF), PSA (Purpose High Interest Savings ETF), and CBIL (Global X 0-3 Month T-Bill ETF). All three trade like any Canadian ETF, settle T+1, and cost nothing to buy at Wealthsimple, Questrade, or National Bank Direct Brokerage.
Head to head: fees and structure
| Ticker | Provider | MER | Holdings | Distribution |
|---|---|---|---|---|
| CASH.TO | Global X | 0.14% | Overnight deposits at Big 6 banks | Monthly |
| PSA | Purpose | 0.15% | Overnight deposits at Schedule I banks | Monthly |
| CBIL | Global X | 0.10% | Government of Canada T-bills, 0-3 month maturity | Monthly |
| MNY | Purpose | 0.15% | Overnight deposits | Monthly |
| ZMMK | BMO | 0.15% | Prime money-market instruments | Monthly |
The gross yield on all three tracks the Bank of Canada overnight rate closely. When the overnight rate sits at 3.00%, CASH.TO and PSA typically pay a gross yield of roughly overnight-rate-plus-0.35% before their MER, so a net yield around 3.2%. CBIL is priced off T-bill auctions, so its yield leads or lags overnight rates by a few basis points depending on the shape of the front end of the curve.
Tax treatment (and why registered accounts win)
Distributions from all three ETFs are treated as fully taxable interest income at your marginal rate, exactly like GIC interest. There is no dividend tax credit, no capital gains preference, and no return of capital shielding to make the taxable-account picture prettier.
That is why the natural home for any Canadian HISA or T-bill ETF is inside a TFSA, FHSA, or RRSP. Ontario investors in the top bracket give back more than half of every interest dollar earned in an open account. Move that same yield inside a TFSA and it compounds tax-free forever.
Best for TFSA parking
- CASH.TO or PSA both work equally well
- Pick whichever your broker treats as commission-free
- Skip the drip and let the cash accumulate for lump-sum rebalancing
Best for taxable accounts
- CBIL is the mildest choice - T-bill discount treatment can shift some return to capital gains at maturity
- Still fully taxable at marginal rates
- Consider a laddered GIC or a discount bond if the balance is large and untouched for over 12 months
Which broker treats them as commission-free?
The commission rules matter more than the 5-basis-point MER gap when your balance is small. If you are dollar-cost averaging $500 a month into CASH.TO at a broker that charges $9.95 a trade, you have surrendered a full month of yield to the trading commission before the deposit even settles.
| Broker | CASH.TO | PSA | CBIL | Notes |
|---|---|---|---|---|
| Wealthsimple Trade | Free | Free | Free | All Canadian ETF trades are commission-free |
| Questrade | Free to buy, $4.95-$9.95 to sell | Same | Same | ETF buy-only commission waiver |
| National Bank Direct | Free | Free | Free | All Canadian and US equities and ETFs commission-free |
| TD Direct Investing | $9.99 per trade | $9.99 | $9.99 | No ETF commission waiver in 2026 |
| RBC Direct Investing | $9.95 per trade | $9.95 | $9.95 | $6.95 for over-150-trade-per-quarter clients |
HOW TO CHOOSE IN 60 SECONDS
- Balance under $10,000 - use CASH.TO or PSA at Wealthsimple or National Bank Direct so trades are free
- Balance over $50,000 sitting for over 6 months - split between CBIL for yield and a GIC ladder for even more yield
- Non-registered account - lean CBIL for the modest tax edge, but do not obsess - the yield spread is thin
- Emergency fund - a HISA at EQ Bank or Wealthsimple Cash pays similarly and is CDIC-insured, unlike an ETF
Are cash ETFs safe? What CDIC does and does not cover
This is the most misunderstood point. When you deposit money at EQ Bank or Tangerine, CDIC insures up to $100,000 per depositor per institution. When you hold CASH.TO or PSA, you own units of an ETF - CDIC insurance does not apply to your position directly. The underlying deposits held by the ETF are covered up to $100,000 per bank at the ETF level, which is a rounding error for a fund holding billions.
How to use cash ETFs inside a rebalancing workflow
The moment you introduce a cash allocation, you have to decide whether it is a strategic sleeve (say, 5% permanent cash reserve to buy the next drawdown) or a tactical holding pen (dividends and contributions waiting for deployment). Tools like Wealth Rebalancer treat cash as its own asset with its own target weight, then flag when it has drifted outside your tolerance band. That prevents both the classic mistake of hoarding cash by accident and the opposite mistake of starving your rebalancing budget.
Bottom line
Between CASH.TO, PSA, and CBIL, the net-of-fee yield gap in any given month is measured in basis points, not percentage points. Pick whichever your broker treats as commission-free, hold it in a TFSA or RRSP if you can, and stop letting idle cash earn zero. The compounding difference over a decade of contribution years is meaningful even when the annual yield feels boring.
Frequently asked questions
What is the best HISA ETF in Canada for 2026?
There is no single best - CASH.TO, PSA, and CBIL all offer near-identical net yields tied to the Bank of Canada overnight rate. Pick whichever trades commission-free at your broker. CBIL edges the deposit-based ETFs by a few basis points since the 2024 OSFI reclassification.
Is CASH.TO safe if a bank collapses?
CASH.TO holds deposits at multiple Big Six Canadian banks. If one bank were to fail, CDIC would cover $100,000 of the ETF's exposure at that institution. Your own position is protected by CIPF up to $1 million if your brokerage fails, not CDIC. In practice the risk is negligible, but it is a different protection framework than an EQ Bank savings account.
Should I hold CASH.TO or PSA inside my TFSA?
Yes - a TFSA is the ideal wrapper. Interest distributions from CASH.TO or PSA are fully taxable at your marginal rate in an open account. Sheltering them inside a TFSA converts that fully taxed income into tax-free compounding at no cost.
What is the difference between CBIL and CASH.TO?
CBIL holds Government of Canada T-bills with 0 to 3 month maturities, while CASH.TO holds overnight deposits at Big Six banks. CBIL has a lower MER (0.10% vs 0.14%) and was not affected by the 2024 OSFI deposit reclassification, so its net yield now often edges out CASH.TO by a small margin.
Do cash ETFs pay monthly or quarterly?
CASH.TO, PSA, and CBIL all pay monthly distributions. You can set your brokerage to reinvest those distributions automatically via a DRIP so the yield compounds without any manual work on your part.
Can I use a cash ETF in my FHSA?
Yes. All three ETFs are eligible for FHSA accounts. If you plan to withdraw within the 15-year window for a home purchase, a HISA or T-bill ETF is a sensible parking spot for your annual contribution once it is inside the shelter.