LONDON, 27 November – BlackRock has launched iShares € Cash UCITS ETF (YCSH), a new actively managed ETF (exchange traded fund) offering investors a way to manage cash investments through a product that seeks to achieve money market level yields, (currently yielding around 3.12% gross annualized). The fund offers the quality and liquidity of regulated money market funds (MMFs) within the convenience of the ETF wrapper, harnessing the experience of BlackRock’s market leading International Cash Management team to actively manage cash across interest rate environments within a robust risk management framework.
As a portfolio building block, YCSH gives access to highly rated short term money market instruments that follow the strict guidelines of European MMF regulation (MMFR), providing clients with the flexibility to meet their liquidity needs.
Bringing the regulatory guidelines of the MMF to the ETF ecosystem should help a broader range of investors actively manage their cash. It can be used to make the most of cash held in trading or ETF savings accounts to supplement returns and by investors who are searching for a diversified cash investment tool in addition to or alongside a standard bank account.
The ETF 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.
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.”
A dedicated team of money market portfolio managers will be actively adjusting the portfolio’s duration, credit exposures and liquidity profiles to minimise volatility and ensure issuer diversification.
Beccy Milchem, Global Head of Cash Distribution and Head of International Cash Management said, “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. The demand for money market funds has surged in the higher rate environment and investors have sought to more actively manage their cash holdings.”
With USD849bn assets managed globally in money market strategies; BlackRock International Cash Management is ranked among the top three providers of MMFs.2 For nearly 50 years3 , BlackRock has sought to offer a variety of liquidity solutions tailored to meet each client’s unique needs, across multiple interest rate cycles and varying market conditions. This launch brings a powerful combination of BlackRock’s leading cash management expertise and the breadth and scale of the global leader in ETFs.
The fund will be listed on Xetra with a TER of 0.10%.
