On Wednesday, BlackRock bolstered its expansive fund library with the release of two new funds. Each of these funds offers a different take on a money market fund strategy.
“Cash is a fundamental building block of investor portfolios, providing stability and liquidity,” noted Jon Steel, Global Head of Product and Platform of BlackRock’s Cash Management Business. “In 2024, U.S. money market funds surpassed $6 trillion in assets, fueled by the appeal of short-term interest rates. As investors seek smarter ways to manage their cash, iShares Money Market ETFs provide a convenient and transparent solution.”
Both funds share a common goal of generating income while maintaining liquidity and stability of principal. Similarly, each fund has a net expense ratio of 20 basis points.
Money Market Strategies
First up is the iShares Prime Money Market ETF (PMMF). PMMF invests its assets towards a wide variety of money market securities. Short-term debt snagged up by the fund includes obligations and repurchase agreements from the government, commercial sector, and U.S. and foreign banks.
The fund may also invest in other instruments that can provide income. This includes mortgage- and asset-backed securities, along with both variable and floating-rate instruments.
Also launching today is the iShares Government Money Market ETF (GMMF). As the fund title implies, GMMF focuses its investments in assets that are either issued or guaranteed by the U.S. government.
At least 80% of GMMF’s portfolio is generally invested in U.S. Treasury notes, bills, or other obligations that are issued or guaranteed by the government. However, the fund may also invest in variable and floating rate instruments as well.
The portfolio managers for both funds tend to select securities that are maturing in 397 days or fewer. Additionally, the overall portfolio for both funds is expected to have a dollar-weighted average maturity of 60 days or less.
“iShares has long been the industry leader for fixed income ETFs so it is great to see them expand their lineup,” added Todd Rosenbluth, head of research at VettaFi. “ After a record year for fixed income ETF adoption, demand has remained strong in early 2025.”
BlackRock offers an extensive collection of ETFs for its investors, with well over 440 funds currently listed in the United States. As a whole, these ETFs account for over $3.2 trillion in assets under management.
For more information, please visit VettaFi.com | ETF Trends.
