Is there a sterling short term money market ETF?

artyboy

I think one was mentioned here before but I can't track it down - Mrs Arty is considering moving one of her pensions and ISAs from Vanguard to HL for the very generous cashback currently on offer, but it would make sense to hold ETFs rather than funds if they are more or less equivalent, due to HLs cap on charges for ETFs...

Plus from previous comments here, I don't think Vanguards own MM fund is one of the better performers in the sector...

(The move would be in specie, with a switch once it got to HL...)

thx
Arty

Costabit

Not a recommendation and unsure if this fits you but this is available on HL

LYXOR SMART OVERNIGHT RETURN UCITS ETF CLASS C (CSH2)

artyboy

Costabit said:

Not a recommendation and unsure if this fits you but this is available on HL

LYXOR SMART OVERNIGHT RETURN UCITS ETF CLASS C (CSH2)

Thanks, but that's USD denominated and tied to the fed funds rate - I'm looking for sterling/SONIA benchmarked

InvesterJones

artyboy said:

Costabit said:

Not a recommendation and unsure if this fits you but this is available on HL

LYXOR SMART OVERNIGHT RETURN UCITS ETF CLASS C (CSH2)

Thanks, but that's USD denominated and tied to the fed funds rate - I'm looking for sterling/SONIA benchmarked

No it's GBP and SONIA benchmarked. From the KIID:

The Fund is an active UCITS. The investment objective of the Fund is to generate a return linked to money market rates. The Fund is benchmarked with the SONIA compounded rate ("Benchmark Index"). The Fund is actively managed by investing in a diversified portfolio of financial instruments within a strict risk and liquidity control environment. The majority of the Fund's investment or exposure are linked to the Benchmark Index. The Fund's investment strategy is linked to the Benchmark Index, any deviation from the Benchmark Index is limited. The SONIA (Sterling Over Night Index Average) rate is an effective overnight interest rate computed as a weighted average of all overnight unsecured lending transactions in the interbank market in Pounds. Sonia reference rates are calculated by the Bank of England, based on all overnight interbank assets created before the close of RTGS systems at 6pm CET, and published through Thomson Reuters every day before 7pm CET. The daily compounded SONIA integrates the impact of the reinvestment of the interests perceived under the OIS (Overnight Indexed Swap) methodology. The Sub-Fund does not benefit from any implicit or explicit guarantee, neither from a swap counterparty (Société Générale) nor from any entity acting as distributor of the Sub-Fund. The SONIA reference rate may be negative, which could result in a negative performance of the Fund. Updated composition of the Fund holdings is available on www.lyxoretf.com. In addition, the indicative net asset value is published on the Reuters and Bloomberg pages of the Fund, and might also be mentioned on the websites of the stock exchanges where the Fund is listed. The share currency is the Sterling Pound (GBP).

Stargunner

artyboy said:

Costabit said:

Not a recommendation and unsure if this fits you but this is available on HL

LYXOR SMART OVERNIGHT RETURN UCITS ETF CLASS C (CSH2)

Thanks, but that's USD denominated and tied to the fed funds rate - I'm looking for sterling/SONIA benchmarked

Lyxor Smart Overnight Return - UCITS ETF C-GBP (the "Fund")

ISIN: LU1230136894 - A sub-fund of the investment company named Lyxor Index Fund (the "Company") domiciled in Luxembourg. Managed by Lyxor International Asset Management S.A.S. ("LIAM")

According to the factsheet on HL it looks like it tracks the Sonia Sterling rate

artyboy

Doh! I was looking at SMTC rather than CSH2...

Thanks, will take a closer look...

Stargunner

artyboy said:

Doh! I was looking at SMTC rather than CSH2...

Thanks, will take a closer look...

I have held it since March, also on HL due to the low fees on ETF’s and it is currently returning just over 5%. That will drop though, when the interest rates start to drop.

artyboy

Stargunner said:

artyboy said:

Doh! I was looking at SMTC rather than CSH2...

Thanks, will take a closer look...

I have held it since March, also on HL due to the low fees on ETF’s and it is currently returning just over 5%. That will drop though, when the interest rates start to drop.

Thanks and yes understood re rates... but Mrs Arty is approaching 55 and may want to take out a TFLS in the next few years from this specific pension - so want to keep 25% of it in something cash-like with a reasonable rate. If it does go to HL then this looks like a decent option.

Albermarle

I wonder with some seemingly ongoing recovery in the equity and bonds markets, how many people who moved money into STMM funds are regretting it a little....

artyboy

Albermarle said:

I wonder with some seemingly ongoing recovery in the equity and bonds markets, how many people who moved money into STMM funds are regretting it a little....

Oh agreed, she's been in the Vanguard MM fund for a while now and the returns from an equity fund would have beaten it. 

But the objective was to reduce volatility ahead of a possible withdrawal. So it's achieving its objective (and dare I say it, rather better than 'low volatility' bond funds have fared over the past 2 years)

mebu60

Albermarle said:

I wonder with some seemingly ongoing recovery in the equity and bonds markets, how many people who moved money into STMM funds are regretting it a little....

No, no regrets. Was about half of new investment money this tax year, has ticked along nicely. Similarly no regrets about relatively high cash weighting sitting in some tidy fixed rates.