Bruce McWilliams of the Financial Times recently wrote about the increasing popularity of cash ETFs both in Europe and the U.S.
The article, Cash ETFs seep into the global market, points out that investors are looking for a safe haven after a string of problems with auction rate securities, money market funds and a global stock market collapse.
According to McWilliams, WisdomTree in the US began offering cash-like funds in dollars, euros, yen, and some emerging markets earlier this year. To promote transparency, WisdomTree publishes a list of holdings on the internet every morning.
The article also mentions Powershares’s VRDO (variable rate demand obligations) Tax-Free Weekly Portfolio (PVI) and Barclay’s iShares Lehman Short Treasury Bond Fund (SHV) an ETF that invests only in short-term US government securities.