Purpose Investments has announced the launch of its sixth exchange-traded fund since making its debut in the ETF space in September this year.

Purpose Investments’ latest ETF seeks to maximize monthly income while preserving capital and liquidity by investing in high interest deposit accounts. (File image)

The Toronto-headquartered firm’s latest offering, the Purpose High Interest Savings ETF (PSA), seeks to maximize monthly income while preserving capital and liquidity.

Listed on the Toronto Stock Exchange, the fund invests substantially all of its assets in high interest deposit accounts with one or more Chartered Banks and/or Canadian credit unions, providing investors with greater yield than traditional money market funds.

Deposit holder institutions currently include the National Bank of Canada, Manulife Bank of Canada, Royal Bank of Canada.

Commenting on the launch, Som Seif, President and CEO, Purpose Investments, said: “Our goal at Purpose is to give the highest quality, low cost investment funds for Canadians. The Purpose High Interest Savings ETF offers a better rate of interest than many money market funds, while offering the safety and security of a savings account.”

Unlike many higher interest deposit accounts, the fund does not have any minimum or maximum investment amounts or require a lock-up period. Indeed, its exchange-traded structure offers investors intraday liquidity, if necessary.

The fund has a range of possible portfolio uses. These include as a core investment for cash holdings, an alternative or replacement holding for Guaranteed Investment Certificates (GICS) and other low interest bearing investments, and as a core or complementary position to the income portion of a portfolio.

The fund has a management fee of 0.10%.