The HISA You’re Holding Is Costing You
Eighteen months of live data on RAAA, the CLO cash alternative from Relevance
Cash has earned its place in client portfolios over the past two years. The question worth asking now is whether it’s being held in the right vehicle. RAAA — the Relevance Enhanced Income ETF — was designed as a higher-yielding, AAA-rated alternative to money market funds and HISAs. After 18 months of live operation through some genuinely difficult market conditions, the track record speaks for itself.
What RAAA Holds
RAAA invests in AAA-rated tranches of Collateralized Loan Obligations (CLOs). A CLO generally holds 125 unique loans, with no single loan representing more than 1% of the security at issuance. The AAA tranche sits at the top: it gets paid first and absorbs losses last. For the AAA holder to lose principal, the underlying loan pool would need to suffer defaults exceeding 50%, with limited to no recovery on asset backed loans. This would be far beyond anything seen historically — including during 2008 and COVID.
These instruments are floating-rate, which is a key distinction from traditional bonds. The yield resets with short-term benchmark rates rather than being locked in at issuance. When rates move, income adjusts — NAV doesn’t bleed. That’s the structural reason RAAA held its value through the rate volatility of late 2024 and the market dislocations of early 2025. This differs from more traditional fixed-rate bonds that decline in value when interest rates rise. You want more income in periods or rising inflation/rates which make CLO’s ideal for income.
Management fee: 45 basis points. Eligible for registered accounts (TFSA, RRSP, RRIF). Margin-eligible — something no comparable HISA ETF can offer.
On the “2008” Question
CLOs often get compared to similarly named securities that experienced significant losses in the Global Financial Crisis. In Contrast, there has never been an A rated CLO that suffered a principal default in the history of the asset class not to mention a AAA CLO. CLOs package senior secured corporate loans with transparent structures and covenant protections.
How It Compares
As of April 13, 2026, RAAA leads every common Canadian cash alternative on 1-year return by a meaningful margin, while being the only option in the set with a formal AAA credit rating and margin eligibility:
| Fund | Ticker | 1 Mo | 3 Mo | 1 Yr | Credit Rating | Margin Eligible |
|---|---|---|---|---|---|---|
| Corton Enhanced Income ETF | RAAA | 0.30% | 0.43% | 3.87% | AAA | Yes |
| Ninepoint Cash Management | NSAV | 0.21% | 0.58% | 2.70% | NR | No |
| Evolve HISA | HISA | 0.18% | 0.51% | 2.36% | NR | No |
| Global X HIS | CASH | 0.17% | 0.51% | 2.32% | NR | No |
Source: Relevance Wealth Management internal data. Past performance is not indicative of future results.
The Bottom Line
RAAA isn’t designed to replace equities. It’s designed to replace the lowest-yielding part of the portfolio — the HISA rolling at 2.3%, the GIC that matured at a rate that no longer exists, the money market position that hasn’t been reviewed in 18 months. Over the past 18 months, through a tariff shock, two rounds of rate repricing, and persistent equity volatility, it has paid distributions every single month and delivered a 1-year return 1.17 percentage points above the next best cash alternative. It has done exactly what it was built to do.
This commentary is for informational purposes only and does not constitute investment advice or a solicitation to buy or sell any security. Past performance is not indicative of future results. Investors should consult their advisor before making investment decisions. RAAA is not guaranteed; its value changes frequently and investors may receive less than they invest.
