Are high-interest savings ETFs a must-have in the advisor toolbox?

HISA ETFs have also become more appealing to White and his team, who prefer to use the Purpose High Interest Savings ETF. Thanks to rapidly rising interest rates, the yield on HISA ETFs has become more compelling relative to what’s been the case in recent years. Aside from that, using those products saves investors the trouble of hunting down which product solutions would allow them to maximize rates.

Aside from holding more of a cash position in high-interest savings ETFs, White says he’s using them more for his cash wedge strategies, where sets aside typically at least three years’ worth of income into nearly guaranteed types of investments for clients.

“For advisors, these ETFs are really worth considering for their ease of use, which helps create more efficiency for the portfolio management in their practice, and ease of understanding for their clients,” White says.

Of course, not all advisors have total access to HISA ETFs, as it depends on what’s available in their firm’s product shelf. Which begs the question: would not having access to the full range of high-interest savings ETFs in the market put some advisors at a disadvantage relative to their peers?

For White, it’s a qualified yes. The ability to access and use low-cost HISA ETF options, he says, would create a big advantage; a management fee of even 10 basis points makes a real difference on a product with yields in the neighbourhood of 1.45% to 1.5%.