With HISA ETFs under review, manufacturers push alternatives

Jul 24, 2023 · Last week, the Office of the Superintendent of Financial Institutions (OSFI) said it would wait until the fall to update liquidity adequacy requirements for high-interest savings …

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A Look At ETF Alternatives To Cash And GICs

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Aug 6, 2024 · HISA ETFs in 2022 and 2023 alone attracted over $15.5 billion in net inflows, taking this category’s assets under management (AUM) to just under $21 billion. 1 However, …

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HISA ETF Rule Changes Could Lead To Lower Rates, Providers Say

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May 15, 2023 · Last year, assets in cash alternative ETFs more than doubled to $15 billion, according to National Bank Financial, and strong flows have continued this year, totalling $3.8 …

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With HISA ETFs Under Review, Manufacturers Push Alternatives

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With HISA ETFs under review, manufacturers push alternatives | Investment Executive . ... If they do drop it this alternative pays 5% and is actually safer, its a short term US treasury. …

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HISA ETFs Might Not Be Dead Yet - Wealth Professional

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Nov 1, 2023 · According to National Bank Financial cash alternative ETFs like HISA ETFs grew their AUM to over $15 billion in 2022 and added another $6.9 billion so far this year. “About …

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Why Horizons Launched A USD HISA ETF As 100% Liquidity Rule …

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Jan 31, 2024 · As of today, high interest savings account (HISA) ETFs will be held to a 100 per cent liquidity requirement. A ruling made on October 31st by the Office of the Superintendent …

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FAQs about With HISA ETFs under review, manufacturers push alternatives Coupon?

What happened to Hisa & 'cash alternative' ETFs?

The rule change by the Office of the Superintendent of Financial Institutions led to lower yields on HISA or “cash alternative” ETFs, which invest mainly in high-interest deposit accounts held by Canada’s big banks. ...

Are Hisa ETFs a good investment under new liquidity rules?

Even under the new liquidity rules, TD Securities said HISA ETFs maintain certain advantages over competing products while interest rates are high. Most banks offer less than 3% on high-interest savings accounts, the report said, while investors sacrifice liquidity when they buy GICs. ...

Are Hisa ETFs viable?

Lala argues that from an underlying perspective these products remain viable and alternative. He believes that from a yield to liquidity to credit standpoint HISA ETFs like his remain ahead of other cash and cash alternative products. What can advisors do now? ...

Should you invest in Hisa ETFs in 2022?

When bond markets tanked in 2022 and interest rates started to rise, investors jumped into HISA ETFs, whose yields rose in lockstep with central bank’ interest rate moves. Currently, they’re yielding just shy of 5 per cent, even with the cut in yield from the new rules. ...

Are Hisa ETFs a hot-money product?

Broadly speaking, these funds are not a hot-money product where money sloshes in and out in waves. HISA ETFs are being used to park cash in investment accounts, as an alternative to traditional savings accounts and as a replacement or diversifier for traditional bond ETFs. ...

Are Hisa ETFs reassessing cash allocations?

Now, as rates decline investors are beginning to reassess their cash allocations. HISA ETFs primarily invest in deposit accounts at Schedule I Canadian banks. Unlike traditional savings accounts, HISA ETFs are exchange-traded, but lack government guarantees or deposit insurance. ...