BlackRock Inc. is launching two money market ETFs, tapping into the $6.6 trillion industry that has swelled amid high-interest rates, though the timing may prove challenging as the Federal Reserve begins to ease policy.
The world’s largest asset manager is seeking approval for the iShares Government Money Market ETF and iShares Prime Money Market ETF, according to regulatory filings with the Securities and Exchange Commission.
The proposed ETF would offer investors the ability to trade throughout the day, unlike traditional money market funds. However, they won’t maintain the stable $1 net asset value that conventional money market funds provide.
The launch timing could prove crucial for the fund’s success, according to Aniket Ullal, head of ETF research at CFRA. He notes that two years ago would have been ideal for such products, when rising rates were driving investors towards money market funds.
However, Ullal suggests there still might be opportunity in the current environment. With yields still around 4%, investors may look to these funds to lock in returns before rates fall further.
Despite expectations of rate cuts, money market funds haven’t seen significant outflows. “We’ve seen some net additions to money market funds, so it’s possible that these funds may not be too late,” Ullal said.
BlackRock’s established presence could help drive adoption of these new products, according to Ullal.
“Blackrock entering the space is a different ballgame, because they have a much better recognized brand and distribution muscle,” he added.
The government money market ETF will invest at least 99.5% of its assets in instruments including cash, U.S. Treasury bills, and repurchase agreements, while the prime fund will invest in a broad range of short-term commercial, bank, and government instruments.
Research from Managing Partners Group shows that 96% of institutional investors and wealth managers are looking to fixed income for stability, diversification, and income in portfolios.
Over half of the investors surveyed predict that between $2 trillion and $2.5 trillion will leave U.S. money markets and return to the bond market in the coming years.
If approved, BlackRock’s funds would be just the second and third money market ETFs to launch, following the Texas Capital Government Money Market ETF (MMKT), which was the first ETF to follow traditional money market fund rules when it debuted in September.
Read More: Texas Capital Unveils ‘First-of-Its Kind’ Money Market ETF
About the author
Mission Local bags two Society of Professional Journalists awards
This here publication last week took home two more awards from the Northern California branch of the Society of Professional Journalists for in-depth coverage and analysis of the sort you expect — and demand — of us. Senior editor Joe Rivano Barros and former data reporter Will Jarrett were honored in the “Explanatory Journalism” category for the mammoth effort of tracing and documenting the Russian dolls-like series of interconnected organizations funneling billionaires’ dollars into San Francisco politics. Joe Rivano Barros, who with Will Jarrett won for the Big Money SF work. Photo by Abigail Van NeelyThe series, titled “BigMoneySF,” included Rivano Barros’ profile of Neighbors for a Better San Francisco, the largest donor over the last several election cycles, and Jarrett’s interactive chart, a stunning accomplishment requiring months of work unearthing reams of financial data structured in a manner so as to render it […]
US airline flight crews confident and angry as unions seek richer contracts
By Rajesh Kumar Singh CHICAGO (Reuters) - Alaska Airlines flight attendant Rebecca Owens works 10 hours a day but only gets paid for half that time - a legacy of a common U.S. airline policy to pay cabin crew members only when planes are in motion. Owens, and thousands of cabin crew like her, wants that to change. In August, 68% of Alaska flight attendants in a ratification vote rejected a contract that would have increased average pay by 32% over three years. It was also the first labor agreement that would have legally required airlines to start the clock for paying flight attendants when passengers are boarding, not when the flight starts to taxi down the runway. Delta Air Lines, the only major U.S. airline whose flight attendants are not in a union, instituted boarding pay for its flight […]
Easy Caramel Apple Cider Mimosas
Sweet, tart and bubbly, this recipe for Caramel Apple Cider Mimosas is a perfectly refreshing cocktail for your next fall party, Thanksgiving brunch, or holiday gathering! A traditional mimosa is only two ingredients: orange juice and champagne (or sparkling wine). But since this recipe is inspired by warm autumn flavors, apple cider replaces orange juice and we’re adding a splash of caramel flavored whiskey. If you can’t find a caramel flavored whiskey, we have some substitutions below in the ‘Tips’ section below. The Ingredients Champagne (Or other sparkling wine like cava or prosecco) Apple cider (not a apple juice) Caramel flavored whiskey Fresh apple slices (honey crisp or granny smith are both delicious!) How to Make the Mimosas These mimosas are easy to make! Simply add 2 ounces of apple cider to your champagne glass with .5 ounces (equal to […]
‘Slow Streets, Fast Friends’ mural comes to 20th St. in the Mission
Sign up below to get Mission Local’s free newsletter, a daily digest of news you won’t find elsewhere. Josue Rojas hovers in the air above the ground, gingerly balancing his stomach on a stool while holding his paintbrush in one hand, face towards the asphalt. He says it’s better than being on all fours. “It’s particularly brutal work,” says Rojas. “I’m on my knees six to eight hours a day and, now that I’m in my mid-40s, it’s not that easy to bear.” Rojas has spent the past week working between bursts of rain to create a street mural on 20th and Florida streets for the “Slow Streets, Fast Friends” project of the SF Parks Alliance nonprofit, which commissions murals on slow streets throughout the city.The mural was finished this past weekend, and now adorns the block where Atlas Cafe, the Southern […]
Speaker Johnson says transgender women won’t be allowed to use women’s restrooms in Capitol
House Speaker Mike Johnson said transgender women cannot use women's restrooms in the Capitol and House office buildings. This also applies to changing rooms and locker rooms, Johnson said."All single-sex facilities in the Capitol and House Office Buildings — such as restrooms, changing rooms, and locker rooms — are reserved for individuals of that biological sex," the statement said Wednesday.Johnson continued, "It is important to note that each Member office has its own private restroom, and unisex restrooms are available throughout the Capitol."After winning her election earlier this month to be Delaware's sole representative in the House, Rep.-elect Sarah McBride will be the first openly trans member of Congress.McBride responded to Johnson Wednesday by saying, "I’m not here to fight about bathrooms. I’m here to fight for Delawareans and to bring down costs facing families. Like all members, I will […]
Maple Vanilla Pumpkin Pie – Better Living
Better Living uses affiliate links. If you make a purchase through them, we may receive a small commission (for which we are deeply grateful) at no cost to you. Looking for a pumpkin pie recipe with a little pizzazz this holiday season? Give this Maple Vanilla Pumpkin Pie recipe a try! This wonderful pumpkin pie has hints of maple, vanilla, and warm spices all within a rich custard-like pumpkin filling. It’s the ultimate pumpkin pie for your holiday table and we’re sure you’ll want to make this a yearly tradition This Vanilla Maple Pumpkin Pie recipe is intended for one 9-inch prepared pie crust. To save time a store-bought crust is your pie-making friend. If you would like to make your own pie crust, try this highly rated Butter Flaky Pie Crust or use your own family favorite recipe. […]
Related
US airline flight crews confident and angry as unions seek richer contracts
By Rajesh Kumar Singh CHICAGO (Reuters) - Alaska Airlines flight attendant Rebecca Owens works 10 hours a day but only gets paid for half that time - a legacy of a common U.S. airline policy to pay cabin crew members only when planes are in motion. Owens, and thousands of cabin crew like her, wants that to change. In August, 68% of Alaska flight attendants in a ratification vote rejected a contract that would have increased average pay by 32% over three years. It was also the first labor agreement that would have legally required airlines to start the clock for paying flight attendants when passengers are boarding, not when the flight starts to taxi down the runway. Delta Air Lines, the only major U.S. airline whose flight attendants are not in a union, instituted boarding pay for its flight […]
Speaker Johnson says transgender women won’t be allowed to use women’s restrooms in Capitol
House Speaker Mike Johnson said transgender women cannot use women's restrooms in the Capitol and House office buildings. This also applies to changing rooms and locker rooms, Johnson said."All single-sex facilities in the Capitol and House Office Buildings — such as restrooms, changing rooms, and locker rooms — are reserved for individuals of that biological sex," the statement said Wednesday.Johnson continued, "It is important to note that each Member office has its own private restroom, and unisex restrooms are available throughout the Capitol."After winning her election earlier this month to be Delaware's sole representative in the House, Rep.-elect Sarah McBride will be the first openly trans member of Congress.McBride responded to Johnson Wednesday by saying, "I’m not here to fight about bathrooms. I’m here to fight for Delawareans and to bring down costs facing families. Like all members, I will […]
UN watchdog meets to discuss condemning Iran over nuclear program, AP explains
Iran has defied international demands to rein in its nuclear program and has increased its stockpile of uranium enriched to near weapons-grade levels, according to a confidential report by the International Atomic Energy Agency seen by The Associated Press. The AP's Stephanie Liechtenstein explains. Source: www.yahoo.com
Airbus CEO says Spirit Aero talks going well but industrial challenges lie ahead
By Tim Hepher BRUSSELS (Reuters) - The head of European planemaker Airbus said talks to finalise the takeover of part of troubled U.S. aerostructures supplier Spirit Aerosystems were going smoothly but that bringing it into Airbus would "not be a walk in the park". Airbus plans to take over the running of four Spirit plants associated with its A350 and A220 jetliner programmes as part of a loosely coordinated plan to carve up the company with Boeing, which is buying back almost all the rest of its former unit. The rare act of cooperation between business foes reflects concerns that the rapid decline of one of the industry's key suppliers, spun off from Boeing almost 20 years ago, could have spread havoc through the world's largest planemakers. Because the plants lose money, Spirit has agreed to pay $559 million to […]
Five common bad weather injuries
Cold and wintry conditions are sweeping across the UK now, with several yellow weather warnings in place for snow and ice in parts of England, Wales and Scotland.During adverse weather conditions, accidents are more likely to happen and we become more vulnerable to injuries. The UK Health Security Agency (UKHSA) issued its first amber cold health alert of the season, warning that the weather is likely to "cause significant impacts across health and social care services".Dr Agostinho Sousa, head of extreme events and health protection at the UKHSA, said: "It is vital to check in on vulnerable friends, family and neighbours to ensure they are well prepared for the onset of cold weather. Particularly if they are elderly or otherwise at increased risk."The Met Office is warning of "a chance of injuries from slips and falls on icy surfaces", as […]
Man held in Peru for allegedly trying to smuggle hundreds of tarantulas to South Korea
Man held in Peru for allegedly trying to smuggle hundreds of tarantulas to South Korea Source: www.yahoo.com
Be the first to leave a comment