Deutsche Bank db x-trackers has listed on SGX the world’s first Australia Money Market ETF linked to the overnight AUD cash rate based on the DB Australia Overnight Money Market Total Return Index. The Index is published by Deutsche Bank AG, acting through its London Branch, in AUD and had a base value of 100 on 1 July 1998.
The Index reflects the daily rolled deposit earning the Interbank Overnight Cash Rate (“IOCR”), which is the short-term money market reference rate for transactions denominated in AUD in Australia published daily by the Reserve Bank of Australia (the “RBA”). The IOCR is the interbank overnight weighted average rate at which trades are arranged between market participants and reflects the actual AUD overnight funding rates transacted by market participants.
The money market rate published by the Reserve Bank of Australia (RBA) is currently at 4.25%.
The performance of the ETF, based on the historical return of the index minus fees, would have ranked in the top 10% of Australian cash funds in the last 5 years (source: Morningstar)
The Australia Money Market ETF can be traded in AUD, SGD, or USD and has an annual all in fee of just 0.20%.
Note that whichever currency ETF you buy, you will still maintain an exposure to the Australian dollar as that is the currency of the underlying asset. Of course, if your funding source is in SGD, buying the SGD version would make sense as it will reduce your currency conversion cost (assuming you trade often).