BetaShares, a leading Australian ETF manager, today announced that its Australian High Interest Cash ETF (ASX:AAA) has reached the $1 billion in funds under management milestone, making it amongst the largest exchange traded funds in Australia.
AAA aims to provide investors with exposure to competitive interest rates from Australian cash accounts, currently paying over 0.50% p.a. than the RBA Cash Rate.
In recognition of its effectiveness, AAA has a Highly Recommended rating from Zenith – one of only three ETFs to receive this rating.
Managing Director of BetaShares, Alex Vynokur said the immense popularity of the fund was a testament to the effectiveness of its strategy, and the continued important of a cash allocation in balanced investment portfolios.
“Increased volatility across global markets, particularly as a result of the new President-Elect in the US, means investors are turning to the safety of cash. AAA is an attractive option for investors and advisers seeking a convenient, liquid and higher-yielding alternative to traditional ‘at-call’ accounts when considering where to allocate the cash portion of a portfolio.
“Advisers in particular are able to utilise the higher rates of AAA in place of the often meagre interest rates received from default cash options in wrap accounts.”
The news follows a period of significant growth at BetaShares, with the company significantly expanding its team and product range in recent times.
“The success of AAA reflects the broader success of the BetaShares business. Our team now numbers amongst the largest dedicated ETF teams in Australia and we are managing one of the broadest product ranges on the ASX,” concluded Mr Vynokur.
