Evolve slashes fee on high interest savings ETF

May 18th, 2022 | By | Category: Fixed Income

Evolve Funds has reduced the management fee on the $560m Evolve High Interest Savings Account ETF (HISA CN) from 0.15% to 0.05% until the end of the year.

Evolve slashes fee on high interest savings ETF

Investors in the ETF will benefit from a lower management fee until the end of 2022.

Listed on NEO Exchange, HISA is an actively managed ETF that seeks to maximize monthly income while preserving capital and liquidity by investing in high-interest deposit accounts.

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

Raj Lala, President and CEO at Evolve Funds, said: “HISA is a high yielding cash solution that can help stabilize investor portfolios and provide liquidity to take advantage of future market opportunities. This fee reduction has been put in place to help investment advisors and their clients achieve a high attractive net yield along with daily liquidity.”

The Evolve High Interest Savings Account ETF is aimed at investors who need to hold cash in their portfolios. It is designed to be a higher-yielding alternative to holding cash directly while maintaining the benefits of liquidity and flexibility through the ETF wrapper.

The fund primarily invests in high-interest deposit accounts with Canadian chartered banks, credit unions, or trust companies. It may also hold high-quality, short-term (one year or less) debt including Canadian Treasury bills, agency securities, and bankers acceptances.

As of 16 May, the ETF was offering a gross yield of 1.45%. At the same point, the yield on a one-year Canadian Treasury bill was 2.40%.

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