FT on BlackRock Money Market ETFs
The Financial Times writes "BlackRock files to launch lower-risk money market fund ETFs." The article states, "BlackRock has filed to launch two money market funds in exchange traded fund wrappers, following in the footsteps of Texas Capital Bank's rollout. The new iShares Prime Money Market and iShares Government Money Market ETFs will both adhere to maturities, credit ratings and liquidity requirements under the Securities and Exchange Commission's Rule 2a-7, intended to ensure a high-quality rating and minimal credit risk, according to filings. In September, Texas Capital's fund management division launched the industry's first 2a-7 ETF, the Texas Capital Government Money Market ETF." The FT continues, "The filings do not disclose the proposed ETFs' fees. Texas Capital's Government Money Market ETF charges 0.20 per cent.... The firm liquidated two open-end money market funds -- the $5.4bn TempFund and $872.2mn Liquid Environmentally Aware Fund -- in September in response to pending SEC rule amendments mandating liquidity fees for prime institutional funds." See our Nov. 12 Link of the Day, "BlackRock Files for Money Market ETFs," and our Sept. 26 Link of the Day, "Texas Capital Launches Govt MM ETF."
