BlackRock Debuts First Euro MM ETF
The Financial Times published an article titled, "BlackRock launches active short-term money market ETF," which discusses a new European-domiciled Euro-denominated money market ETF. They tell us, "BlackRock has rolled out an actively managed short-term money market exchange traded fund. The iShares € Cash Ucits ETF offers investors 'the quality and liquidity of regulated money market funds within the convenience of the ETF wrapper,' according to the worlds largest asset manager. The product was the first actively managed short-term money market fund regulated ETF in Europe, the company said. It provided access to 'highly rated short-term money market instruments that follow the strict guidelines of European [money market fund] regulation', BlackRock added." They quote Jane Sloan, head of global product solutions for Europe, the Middle East and Africa at BlackRock, "Bringing the regulatory guidelines of the [money market fund] to the ETF ecosystem should help a broader range of investors actively manage their cash. The product 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. The ETF 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." The FT says, "The ETF has a total expense ratio of 0.1 per cent and will be listed on the Xetra segment of Frankfurt's stock exchange." Beccy Milchem, BlackRock's global head of cash distribution, adds, "Demand for money market funds has surged in the higher rate environment and investors have sought to more actively manage their cash holdings."
