Green figgy bank with calculator

Horizons ETFs Management (Canada) Inc. launched a U.S. dollar high-interest savings ETF on Thursday, the U.S.-dollar equivalent of a fund launched earlier this year.

The Horizons USD Cash Maximizer ETF seeks “modest capital growth” by investing primarily in high-interest U.S. dollar deposit accounts with Canadian banks, a release from the firm said. The management fee is 0.18%.

“Many Canadians have significant U.S. cash holdings,” Horizons president and CEO Steve Hawkins said in a statement. “Whether they are business owners with U.S. clients or snowbirds with property in the U.S, there is a large need for U.S. cash savings vehicles.”

High-interest savings ETFs have proven popular this year as investors sought safety in a low-interest-rate environment. According to National Bank’s latest ETF report, “cash alternative” ETFs that hold high-interest savings deposits grew 35% this year to May 31, with inflows totalling more than $1.4 billion.

Shares of the Horizons USD Cash Maximizer ETF started trading Thursday on the Toronto Stock Exchange. The fund is not covered by the Canada Deposit Insurance Corporation.