Are there any money market ETFs or equivalent?
14. Feb, 2010 
4 Comments
My broker pays a very very low percentage on a cash balance. Where can I stash my cash and make money market rates? I need to be able to convert the shares back into cash for trading within minutes if necessary.
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There is an EFT through I-shares that tracks the 1-3 year treasury. It would be about equivalent to a money market, however there is some principal risk. Sorry but I don’t have the ticker off-hand. Go to i-shares.com
There is not ETF money market. Generally, money markets invest in short term instruments. As such it would be difficult to invest in a basket of them without some sort of an active management compinant. As of yet, the SEC has not allowed actively managed ETFs.
Unfortunately, this is the price of super liquidity is lost opportunities to invest at higher rates. There are other options you can consider, such as buying equities or bonds and then selling them to get cash. That is really no different than buying or selling an ETF.
a money market rate is about 5% most of my ETF’s alone this year has made at least double that some even went 4x that amount). While a little cash balance is ok too much and you are actually hurting your portfolio. but the fund the previous mentioned is shy 1-3 year ishares treasury. I say keep investing.
No, and even if there was, the commisions would eat up advantages for short term holdings as a MMF is meant to be.
Most brokages offer a money market fund though, I assume you tried asking them? Curious who it is you are with that doesn’t.
In any case you could switch brokers, of failing that see if they offer ACH transfers in for free. Remember you have T+3 on most trades, so you could keep the money in a money market, do the trade and then ACH in the money from a money market account.