Toronto-based Purpose Investments Inc. Tuesday announced the launch of the Purpose High Interest Savings ETF (TSX:PSA), which began trading today on the Toronto Stock Exchange.
The fund seeks to maximize monthly income while preserving capital and liquidity. It 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.
“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,” said Som Seif, president and CEO, Purpose, in a release. The fund’s distribution yield is 1.35%.
The portfolio manager of the fund is Toronto-based Breton Hill Capital, and the management fee is 0.10%.
The fund will trade on a T+1 (trade date +1 business day) settlement basis.
Purpose Investments is the manager of NexC Partner Corp. (TSX:NXC), an investment company that invests in a portfolio of North American dividend-paying equity securities plus an equity stake in Purpose Investments.