BetaShares Australian Cash Plus Active ETF (MMKT)
I'm looking to park cash while not trading. How does MMKT shape up as a safe place to do so? It pays around 5%+ pa, paid monthly. Cheers
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Answer
Hi Peter,
The MMKT ETF invests in cash and short-term money-market securities (like bank deposits and high-quality short-term debt) to generate a stable, low-risk income slightly higher than typical cash rates, with monthly distributions and daily liquidity on the ASX.
- Typical holdings are bank deposits, bank bills and short-term corporate debt issued by investment-grade borrowers.
Investors typically use MMKT as a place to “park” money while earning a yield similar to institutional money-market funds but without locking up capital – at MM we use a similar product the BetaShares High Interest Cash ETF (AAA) for this purpose, it yields 3.91%, lower than the MMKT’s 4.07% due to its slightly lower risk profile, i.e. the MMKT typically yields more than the BetaShares AAA ETF because it takes slightly more credit risk and has a broader investment universe.
- AAA: ETF version of bank savings accounts.
- MMKT: ETF version of a money-market fund.
Money-market funds usually earn ~20–50 basis points more than pure cash, which is why MMKT’s yield tends to be higher. We would regard the MMKT ETF as safe but its yield is closer to 4% than 5%.
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BetaShares Australian Cash Plus Active ETF (MMKT)
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BetaShares Australian Cash Plus Active ETF (MMKT)
