Schwab Asset Management has launched its first money market ETF, the Schwab Government Money Market ETF (SGVT) on the NYSE Arca today.
With an expense ratio of 0.28%, the fund aims to provide current income while preserving capital and maintaining liquidity.
According to the prospectus, the fund invests primarily in U.S. government securities, including Treasury bills, notes, and government agency obligations. At least 99.5% of the fund’s assets are held in cash, government securities, or fully collateralized repurchase agreements.
The launch of SGVT adds to a recent wave of money market ETFs entering the market. Other recent launches include BlackRock’s iShares Government Money Market ETF (GMMF) and the Texas Capital’s Government Money Market ETF (MMKT). These products reflect growing investor interest in transparent, flexible cash management options through ETFs.
See More: Money Market ETFs: New Ways to Reach for Yield in 2025
The Growth of Money Market ETFs
When interest rates increase, money market funds offer more attractive short-term yields compared to other low-risk options. At the same time, economic and geopolitical uncertainties can also drive investors to seek safe, liquid places to hold cash. Money market funds, especially those investing in government-backed securities, provide capital preservation and easy access to funds, making them a preferred choice for both individual and institutional investors managing cash amid uncertain conditions.
Schwab’s newest ETF complements its existing lineup of money market mutual funds, such as the Schwab Government Money Fund (SNVXX) and the Schwab Value Advantage Money Fund (SWVXX), providing investors with an additional option for cash management in ETF format.
For more information, please visit VettaFi.com | ETF Trends.
