- Global X High Interest Savings ETF (CASH)
- Harvest Canadian T-Bill ETF (TBIL)
- Global X USD High Interest Savings ETF (UCSH.U)
- Do you have options for better diversification of my cash holdings?
- In the event of “something going off the rails”, what impact does this have on an investor of these two investments like me in the event of a bail-in of either Scotiabank or National Bank because of these holdings within the two ETF's?
We would consider both ETFs as about as safe as one can get without an explicit guarantee. For pure safety, a GIC will offer better returns and guaranteed to $100,000. For larger amounts, Federal T Bills would offer more protection with a government guarantee. Rates are lower, though. A bank money market fund is another option, though these are not guaranteed either. But their record is very solid, with only one or two small issues and losses occurring during the financial crisis of 2008. This link adds some colour to some Canadian rules that were changed last year. A fund like CBIL may be of interest, as it owns T-bills and not deposits. This article discusses bail-ins, and notes 'deposits' and maturities under 400 days are excluded.