When you want to make interest on your cash when you are out of the market, you should be investing in short term bind ETFs.
Here’s a comparison chart of the top Canadian ETFs that are similar to SGOV, focusing on safety, liquidity, and yield:
ETF Ticker Asset Type Duration Yield (Approx.) MER (Mgmt Fee) Key Features
Horizons 0-3 Month T-Bill ETF CBIL Canadian T-Bills 0–3 months ~4.75%* 0.10% Closest to SGOV; invests in short-term Canadian government T-Bills
Purpose High Interest Savings ETF PSA Bank Deposits N/A (cash-equivalent) ~4.95%* 0.15% High-interest bank deposits; very stable and liquid
CI High Interest Savings ETF CSAV Bank Deposits N/A (cash-equivalent) ~5.00%* 0.10% Very similar to PSA; slightly lower fees
BMO Ultra Short-Term Bond ETF ZST Govt. + Corp Bonds <1 year ~4.50%* 0.17% Slightly more yield potential, but minimal interest rate risk
iShares Ultra Short-Term Bond Index ETF XSB Govt. + Corp Bonds 1 year avg. ~4.30%* 0.10% High liquidity, low volatility; longer than SGOV but still short-term
*Yields are approximate as of recent data (spring 2025) and can fluctuate with interest rates.
Recommendations:
• For the most SGOV-like option, go with CBIL.
• For higher yield and simplicity, CSAV or PSA are excellent cash-parking tools.
• If you’re okay with slightly more duration risk, ZST offers higher potential yield.
