Evolve launches US high interest savings ETF

Sep 1st, 2022 | By | Category: Fixed Income

Evolve Funds has expanded its suite of cash solutions ETFs with a new actively managed fund that invests primarily in high-interest US dollar deposit accounts.

Raj Lala, President and CEO of Evolve ETFs

Raj Lala, President and CEO of Evolve Funds.

The Evolve US High Interest Savings Account Fund (HISU.U CN) has been listed on Toronto Stock Exchange in US dollars.

Offering investors an alternative to traditional savings instruments, the ETF seeks to maximize monthly income while preserving capital and liquidity.

According to Evolve, the fund’s yield will be calculated as the Fed’s upper rate plus 0.20% which currently totals 2.70%. Any future Fed rate increases will be promptly reflected in HISU’s yield.

The ETF comes with a temporarily reduced management fee of 0.05%. From the beginning of 2023, the fund’s management fee will revert to 0.15%.

As a result of the fee reduction, the ETF effectively offers a higher net yield just as recent market volatility and the challenging fixed income environment are driving many investors to increase their cash positions.

Evolve also offers the Evolve High Interest Savings Account ETF (HISA CN) which primarily invests in high-interest deposit accounts with Canadian chartered banks, credit unions, or trust companies. As of the end of August, HISA was offering a gross yield of 2.99%. The ETF also has a temporarily reduced management fee of 0.05% and currently houses $1.2 billion in assets.

Raj Lala, President and CEO at Evolve Funds, said: “HISU is a great complement to our existing cash solutions. Cash continues to be an important component of a well-diversified portfolio.”

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