First Asset Investment Management has unveiled a new actively managed ETF in Canada that seeks to maximize monthly income by investing in high-interest deposit accounts.

Rohit Mehta, President of CI First Asset ETFs.

The CI First Asset High Interest Savings ETF (CSAV CN) has been listed on the Toronto Stock Exchange and comes with a management fee of 0.14%.

“Many investors need to hold cash in their portfolios but end up sacrificing returns to achieve safety and liquidity,” said Rohit Mehta, President of CI First Asset ETFs.

“The CI First Asset High Interest Savings ETF has been designed to be a higher-yielding alternative to holding cash directly while preserving the benefits of daily liquidity, convenience, and flexibility.”

The ETF 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.

Investments made by the ETF will be in the top two rated categories of any of the designated rating organizations.

The fund currently offers a yield of approximately 2.1% and is set to make distributions on a monthly basis. This compares favourably with the one-year Canadian Treasury bill yield of 1.7% as well as the average yield of 1.4% on Cashable GICs.

Investors in the fund will also benefit from no lock-up period and daily liquidity, meaning investors will have efficient access to their cash savings.

The fund will compete with the Purpose High Interest Savings ETF (PSA CN) which has over CAD$1.6 billion in assets under management and comes with a management fee of 0.15%. It is also currently yielding 2.1%.