Money Market ETF's

Julezy101

Just wondering if its worth using Money Market ETF's for cash in my SIPP.

With AJ Bell I get 2.1% interest on cash held, custody charge would be £120 a year. I cant see whether Money Market ETF's actually pay a dividend or not and if they do how much it is? e.g CSH2 - Lyxor Smart Overnight Return - UCITS ETF

Thanks

NedS

CSH2 does not pay any distributions - it is an accumulating ETF. Look at the performance over a 1 month period to get an indication of recent performance (currently around 4%). CSH2 tracks the overnight SONIA rate, which in itself tracks the BoE base rate.

Keep in mind with an ETF you will have a bid/offer spread and trading fees to buy and sell which will eat into any 'profit', especially if holding for the short term. Whether an ETF will be advantageous compared to OEIC fund which may not incur trading fees or any bid/offer spread will likely depend on platform fees - ETFs are often popular on platforms with capped fees for shares/ITs/ETFs etc