Texas Capital Government Money Market ETF

MMKT

Market cap $57.6M

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.

Money market mutual funds have long been a popular cash management tool for investors looking to park cash short-term, while preserving capital and picking up some return and yield. Now, there are money market ETFs for that, too.

Stocks are holding firm near all-time highs. But Wall Street can't ignore the record amounts of cash still parked on the sidelines.

Since they began trading in 1993, ETFs have been steadily encroaching on the various segments of the mutual fund industry. Starting with U.S. large-cap stocks in a passive portfolio, they have moved into almost all areas covered by mutual funds.

On this week's episode of ETF Prime, host Nate Geraci explored the energy investing sector with Stacey Morris, CFA, Head of Energy Research at VettaFi. Afterward, Carlos Pena, Vice President and Portfolio Manager at Texas Capital, joined the podcast to discuss the Texas Capital Government Money Market ETF (MMKT).

Investors have been married to their money market funds for the better part of the last two years. But a recent poll from VettaFi's Q4 Fixed Income Symposium in October showed more market participants may finally be willing to break out of their comfort zones and redeploy those funds into riskier assets.

Today, Texas Capital launched its latest fund, the Texas Capital Government Money Market ETF (MMKT). MMKT has a net expense ratio of 0.20%.