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Horizons ETFs Management (Canada) Inc. launched a new ETF on Tuesday. 

The Horizons High Interest Savings ETF (ticker CASH) aims to provide a low-cost cash savings alternative to traditional bank accounts, with daily liquidity and a competitive interest rate, a release said.

The investment objective of the new ETF is similar to the Horizons Cash Maximizer ETF (ticker HSAV), which launched in February 2020.

“CASH has many of the same characteristics as HSAV, however CASH is a traditional trust and has been designed to pay out monthly distributions, instead of reinvesting them, the way HSAV does,” said Steve Hawkins, president and CEO of Horizons ETFs, in the release.

Horizons said in January that it would potentially cap new subscriptions to HSAV, which has more than $1.3 billion in assets under management, once AUM exceeds $1.5 billion.

“We wanted to ensure that Canadian investors continue to have a compelling low-cost cash-savings ETF option if we have to close HSAV to new subscriptions,” Hawkins said.

The new ETF will be managed by Horizons ETFs and has an annual management fee of 0.08%. It began trading on the Toronto Stock Exchange (TSX) on Tuesday.

Horizons also lowered the management fee of another ETF.

The management fee of the Horizons Equal Weight Canada Banks Index ETF (ticker HEWB) has been lowered to 0.25% from 0.30%, effective as of the close of business on Nov. 1. The fund’s investment objective is unchanged.