Betashares has launched an Australian cash exchange-traded fund (ETF) providing investors with an investment vehicle to access ready liquidity without having to commit their funds for long periods.
The Betashares Australian Cash Plus Fund (MMKT) offers exposure to a portfolio of Australian dollar-denominated money market securities, primarily issued by investment-grade entities and with maturities of three months or less.
Specifically, the new fund aims to outperform the Bloomberg AusBond Bank Bill Index with distributions paid monthly, and will charge an annual management fee of 0.18 basis points with no minimum investment required.
The new offering is aimed at providing investors with fast liquidity through T+2 settlement, enabling them to achieve improved yields on their cash. This is achieved while maintaining a high degree of capital stability and without investors locking up money for long periods of time.
The investment manager noted the launch of the ETF is well-timed given the growth of money market funds in the United States, which have increased from US$4.7 trillion to US$5.7 trillion in the last 12 months.
Betashares chief executive Alex Vynokur added the new addition to its range of cash and fixed-income is ideal for investors seeking to maximise the returns on their cash holdings within their portfolio.
“Investors and their financial advisers will be able to use MMKT to gain access to a compelling solution for the cash allocation of their investment portfolios. The fund provides access to high quality securities with enhanced yields that are generally only available to institutional investors,” he explained.
The new fund follows the manager’s recent release of an ETF focused on cash-flow-rich international companies and a currency-hedged version of its FTSE 100 ETF.