BlackRock has listed two cash exchange trade funds (ETFs), the iShares Core Cash ETF (BILL) and the iShares Enhanced Cash ETF (ISEC), which will offer investors access to a diversified portfolio of money market and short term fixed interest Australian dollar securities.
Both funds, which would be benchmarked to the S&P/ASX Bank Bill Index, were designed to help clients benefit from ‘an established trading infrastructure of market makers’ by taking an advantage of the ease of trading on the Australian Stock Exchange (ASX).
According to BlackRock, BILL would be part of the Australian Core series of iShares ETFs, aimed to deliver the yield of the benchmark at the price of seven bps per annum, by providing investors with a regular income stream while preserving principal and liquidity through the maintenance of a portfolio of short-term money market instruments.
The second fund, ISEC would offer a higher level of current income than the benchmark through investing in a portfolio of money market and fixed income instruments, including floating rate securities.
BlackRock Australia’s head of iShares, Jon Howie, said: “These iShares ETFs demonstrate the ability of iShares to offer innovative solutions that meet investors’ needs.”
“We are delighted to provide investors with two institutional-quality ETFs that seek to provide attractive monthly income and at the time meet daily liquidity and transparency demands, all the lowest cost available in the market.”