db x-trackers, Deutsche Bank’s Exchange Traded Funds business, has recently launched Asia’s first money market ETF, with the listing of the US Dollar Money Market ETF in both Singapore and Hong Kong.
The DB x-trackers US Dollar Money Market ETF tracks the Fed Funds Effective Rate Total Return Index, which reflects a daily rolled deposit earning Fed Funds effective rate.
The ETF benefits from a credit rating of Aaa and a market risk rating of MR1 assigned by Moody’s Investors Service.
The minimum bid size of this ETF is US$0.01 and will be quoted in board lots of 5 units. The ETF charges a low all-in annual fee of up to 0.15%.
With USD money market ETFs giving an average annualised returns of around 3% over the long term, most of the retail investors here who invest in the stock market would probably not be interested in this ETF.
A presentation of this ETF can be downloaded here: