Difficulty: Easy
1) What are Money Market Instruments?
2) Positives of the Phillip SGD Money Market ETF
3) Negatives of the Phillip SGD Money Market ETF
SGX’s first Money Market ETF was launched by Phillip Capital Management for trading on 5 October 2020. The ETF aims to track the performance of the FTSE SGD 3-month SOR Index, with the intention to provide a better yield for investors keen on a cash management solution.
Our comments on this product had been quoted by The Business Times (on 6 October 2020) and we thought it would be apt to provide more details here.
The InvestQuest View:
For retail investors, we think that the Phillip SGD Money Market ETF is less attractive than some of the alternatives in the market currently, which offer a similar liquidity profile, higher returns with lower risk.
For now, we believe that the Phillip SGD Money Market ETF is best suited for institutional investors with low brokerage fees and looking for a cash sweep solution....
