Specialist fund manager VanEck has launched an active cash exchange-traded fund (ETF) that will draw upon the organisation’s experience in the credit and fixed income markets.
The VanEck Cash Plus Active ETF, trading under the Australian Securities Exchange (ASX) code MONY, has been introduced to the market in response to demand from financial advisers.
The ETF invests in high-quality, highly liquid Australian dollar cash, short-term money market and short-duration credit securities.
“MONY complements our ETF ecosystem in offering leading strategies in fixed income, equity and alternative assets. A cash offering is a natural fit within our ETF range and, in particular, is one that our advice clients have been asking for,” VanEck Asia-Pacific chief executive Arian Neiron noted.
Neiron pointed out the state of the Australian economy has meant investors are looking for lower-risk investments with higher yields to protect their wealth from being eroded by continuing high levels of inflation.
“MONY is a core cash solution that aims to enhance yield. We have designed a portfolio that identifies yield opportunities across different cash, cash-like instruments and short-duration credit, issuers and individual securities to maximise risk-adjusted returns,” he explained.
The launch of MONY brings the firm’s total number of ETFs listed on the exchange to 49, having released its first offering over 12 years ago.
Following last week’s rise in the official interest rate, and the expectation this trend will continue in 2026, a lower-risk ETF that is leveraged to interest rate hikes is expected to be in high demand.
“The rise of ETFs, managed accounts and shifts in the superannuation sector have prompted many advisers to rethink their service offerings. But our singular focus is ETFs and investment solutions that help investors build resilient portfolios,” Neiron said.
“With rates poised to rise, we think MONY is well positioned to take advantage of relative value opportunities that exist within cash, short-term money market and floating-rate instruments.”
The new product will charge a management fee of 0.15 per cent, which the manager claims will make it the most cost-effective active cash ETF on the ASX.
