Best cash-alternative ETFs for Canadian investors 2026

If the only investment account you have is a registered retirement savings plan (RRSP), you probably don’t need to concern yourself with cash or cash-equivalent holdings. But let’s say you’re in the market for your first home and you’re saving up a down payment. You can’t afford to lose money and you could need to cash it in at any time, but you still want to earn enough interest to keep pace with inflation.

This and other short-term purposes are where cash alternative ETFs can come in handy. They are considered safe (though not covered by deposit insurance), yet liquid. Unlike a guaranteed investment certificate (GIC), you can sell them at any time—but they’ll still give you GIC-like returns and will hold their value if interest rates rise.

Our top picks for cash alternative ETFs

ETFTickerManagement feeMERHoldingsDescription

Global X 0-3 Month T-Bill ETF	CBIL	0.10%	0.11%	6	Holds GoC treasury bills with maturities <3 months, 2.42% annualized distribution yield
BMO Money Market Fund ETF	ZMMK	0.12%	0.13%	420	Invests in short term govt and corporate paper, 2.28% annualized dist’n yield
Global X High Interest Savings ETF	CASH	0.10%	0.11%	5	HISA holdings, trailing yield 2.38%, current yield 1.7% annualized

Of the dozen or so options in Canada, our panel liked the Global X 0-3 Month T-Bill ETF (CBIL) best. Panellist Mark McGrath called it “the safest Canadian-dollar cash alternative available.” It invests in Canadian federal treasury bills that are less than three months from maturity, so there is no duration risk.

“A low 0.11% MER for a fairly stable net asset value with minimal credit and interest-rate risk, and it pays monthly income that fluctuates in lockstep with the Bank of Canada policy rate,” added Tony Dong.

The panel also favoured the BMO Money Market Fund ETF, which has a little more leeway to invest in short-term government and corporate paper and generates a slightly higher yield as a result. Third place in our voting went to the Global X High Interest Savings ETF, which holds a portfolio of just five high-interest savings accounts with different Canadian financial institutions.

Read more on investing:

The best online brokers in Canada A guide to the best robo-advisors in Canada The best TFSAs in Canada The best RRSP investments

The post Best cash-alternative ETFs for Canadian investors 2026 appeared first on MoneySense.