Asset management giant BlackRock has launched what it claims is the first actively-managed short-term money market fund regulated ETF in Europe
The fund is designed to enable individual investors to supplement savings and access attractive income using high credit quality securities. It also aims to provide liquidity and generate income as a portfolio building block.
The iShares € Cash UCITS ETF (YCSH) offers investors a way to manage cash investments through a product that seeks to achieve money market level yields, (currently yielding around 3.12% gross annualized).
The fund offers the quality and liquidity of regulated money market funds (MMFs) within the convenience of the ETF wrapper, harnessing the experience of BlackRock’s market International Cash Management team to actively manage cash across interest rate environments.
As a portfolio building block, the fund will give access to highly rated short-term money market instruments that follow the guidelines of European MMF regulation (MMFR), providing clients with the flexibility to meet their liquidity needs.
Bringing the regulatory guidelines of the MMF to the ETF ecosystem should help a broader range of investors actively manage their cash. It can be used to make the most of cash held in trading or ETF savings accounts to supplement returns and by investors who are searching for a diversified cash investment tool in addition to or alongside a standard bank account.
The ETF enables individual investors, such as those using a digital investment platform, to access income using high credit quality securities with no minimum holding periods from as little as €1.
Jane Sloan, EMEA Head of Global Product Solutions at BlackRock said “YCSH combines the flexibility and access of the ETF wrapper, including continuous pricing and the ability to trade seamlessly throughout the day, with the security of money market fund regulation, delivering a first-to-market solution to investors who want to do more with their money.
“Europeans have shown demand for income investments this year and YCSH expands the choice available to them without a fixed term of investment.”
