CSH2 ETF Alternative ETF?

cloud_dog

Hi

I have searched for an alternative to CSH2, but haven't been able to find one, specifically non-distributing ETF.

I am looking at moving one of our SIPPS to Fidelity (just for IT / Admin resilience), but they still will not onboard CSH2 (for my cash/cash like holdings).

I've looked at ERNS and it would suffice as an option (and importantly is available on Fidelity), but it is a distributing ETF with no accumulating version available.

Use of ETFs is simply to keep costs down.

JP Morgan do an 'ultrashort bond' but...mmm.

Eyeful

You have looked at ERNS & JGST, have you looked at XSTR?

aroominyork

XSTR also distributes income.

Stargunner

XSTR is also not available from Fidelity

InvesterJones

But apart from that, what have the Romans ever done for us?

cloud_dog

ERNS might be a product to use. 

The CSH2 money is for near term liquidation  / cash flow (drawdown) requirements in the near future when I start my non-working life shortly.  Using ERNS would not be the end of the world, e.g. receiving and retaining the 'interest' monthly to support drawdown, but I was hoping for a 'neater solution', whilst not having to pay for the privilege, e.g. holding OEICs like RL STMMF (etc).

m_c_s

JGSA accumulating ETF is the nearest I have found. I have not used it because it has a small AUM and a higher fund charge. I have been tracking it on T212 for a few months and it has virtually identical returns when compared to CHS2 and ERNS (divs reinvested).

cloud_dog

m_c_s said:

JGSA accumulating ETF is the nearest I have found. I have not used it because it has a small AUM and a higher fund charge. I have been tracking it on T212 for a few months and it has virtually identical returns when compared to CHS2 and ERNS (divs reinvested).

It could have been an option, but not available on Fidelity.

raghav.raman

I was in a similar situation. I cashed out of CSH2 for the transfer.
Once in Fidelity I bought RL STMMF, not ideal.

Is a ultrashort bond comparable to a money market fund?

cloud_dog

It is not as comparable, as in there may be slightly longer dated bond used, but CSH2 is a bit of a hybrid insofar as it uses relatively complex instruments (swaps etc I believe) to achieve its target returns (SOIA / SONIA).

I choose not to use OEICs like the RL fund due to the impact on platform charges.  It is something I am reviewing (running the numbers) to see how much the increased charges might affect things, but at the moment I was hoping for an ETF option.

I think ERNS would do the job albeit via a slightly different method.

cloud_dog

Just looking over ERNS, and it distributes accrued income half yearly, so not monthly as I originally commented on (unsure how / why I didn't notice that).