The ASX has a new cash fund ETF available for investors with the UBS IQ Cash ETF recently listed. The new ETF trades under the ASX code of MONY. According to its product disclosure statement, the fund aims to provide investors with a total return that exceeds the Reserve Bank of Australia cash rate before fees, expenses and taxes. The fund will have an ongoing management cost of 0.18% p.a. and distributions will be made monthly.
The new ETF’s investment guidelines provide for a minimum of 50% of its investment being held in the “big four” Australian banks. The ETF will invest in deposits and certificates of deposit issued by Australian banks, Australian subsidiaries of foreign banks and Australian branches of foreign banks (all of which must be regulated by APRA).
The ETF’s holdings as at 31 May 2017 were predominantly made up of holdings in Westpac and NAB certificates of deposit. These certificates of deposit account for 49.8% and 49.5% of the ETF’s assets respectively.
UBS has 210 ETFs issued globally with $48 billion in funds under management including nine ASX-listed ETFs. UBS’s new ASX-listed ETF is one of only two Australian cash ETFs currently listed on the ASX.
You can find a full list of ASX listed cash and fixed interest ETFs here.