The Best Canadian Money Market ETFs for 2026

What changed in Canadian cash ETFs

For more than a decade, Canadian investors treated cash as a zero-return parking spot. After the Bank of Canada lifted rates above 2%, high-interest savings ETFs and Treasury Bill ETFs became a genuine asset class. In 2026, the yield is real but the products are not identical.

The main contenders

• CASH.TO (Horizons): Invests primarily in high-interest savings accounts at Canadian banks. Daily liquidity, no minimums, and distributions that reflect the overnight rate less a small fee.
• CBIL.TO (BMO): A Treasury Bill ETF holding Government of Canada T-bills. The yield is slightly lower than savings accounts but the income is fully taxable as interest, and credit risk is essentially nil.
• PSA.TO (Purpose): Another high-interest savings ETF. It has a longer track record and tight bid-ask spreads, making it useful for large cash balances that may move quickly back into equities.
• ZST.TO (BMO): Ultra-short-term fixed income. It owns commercial paper and short bonds, so it behaves more like a money-market fund than a pure savings vehicle.
• HISA.TO / HISU.U (CI): A two-share-class version of the same pool. HISU.U is the U.S.-dollar class, which is handy if you settle trades in USD and want to avoid conversion churn.
• BIL.TO (Evolve): Treasury Bill exposure with a lower fee structure than some peers. It is newer but has gained traction with fee-sensitive advisors.

How to choose

Match the wrapper to the use case. Pure emergency cash belongs in a savings ETF or HISA. A portfolio rebalancing sleeve can use T-bills if you want government-backed paper. If you trade in USD, the U.S.-dollar share class saves conversion costs. Always check the management expense ratio, the current yield to maturity, and the distribution frequency before clicking buy.

The tax reality

All of these vehicles distribute interest income, which is taxed at your full marginal rate in a taxable account. Inside a TFSA or RRSP the yield compounds without that drag, which is why many investors now hold their cash sleeve inside registered accounts.

The bottom line

There is no single best money market ETF. The best choice depends on your account type, settlement currency, and whether you need same-day liquidity or are willing to lock in T-bill rates for a few extra basis points.