BlackRock has launched the first actively-managed, short-term European money market ETF for European investors.
The iShares € Cash UCITS ETF (YCSH), which currently has a gross annualised yield of 3.12%, aims to offer investors a supplement to cash saving across various interest rate environments, as well as a stream of income, via an ETF wrapper.
The fund, which will be managed by BlackRock’s Cash Management team, will adhere to European MMF regulation (MMFR). The firm said this “should help a broader range of investors actively manage their cash”.
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The ETF has no minimum holding period, and can be accessed by individual investors with a minimum deposit of €1. It will be listed on Xetra with a total expense ratio of 0.1%.
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.”
Beccy Milchem, global head of cash distribution and head of international cash management, added that cash “plays a critical role in a well-rounded investment strategy”.
“We are delighted to bring the breadth and depth of BlackRock’s active cash expertise to a broader range of investors utilizing the convenience of ETFs,” she said. “The demand for money market funds has surged in the higher rate environment and investors have sought to more actively manage their cash holdings.”
