By asset class

Money-market ETFs

A low-risk, cash-like place to park money for the short term while it earns a little interest.

Cash-like, very short-term, low risk

What Money-market ETFs are

A money-market ETF holds very short-term, cash-like investments — things like short-dated government bills (loans to a government that are repaid within months) and bank deposits. Everything inside is designed to be paid back quickly, usually within days to about a year.

People use these funds as a place to park money they may need soon, or money they don't want to expose to market ups and downs. In return, you earn interest that closely follows short-term rates in the economy. Think of it as a savings-account-style option in ETF form.

The trade-off is that returns are low. A money-market ETF is built to keep your money steady and available, not to grow it. When short-term interest rates fall, the interest it pays falls too.

At a glance

What it holdsShort-dated bills, deposits, and other cash-like instruments

Common benchmarksOvernight rates like €STR (euro) or SOFR (dollar)

Fee range (TER)~0.10%–0.20% per year

Risk levelLow — among the calmest fund types

Typical returnClose to short-term interest rates

Why beginners look here

A calm parking spot

It gives you a low-risk place to hold money you may need soon or don't want to expose to market swings.

Cash earns a little

Instead of sitting idle, your money earns interest that tracks very short-term rates.

Low risk, low return

It's steady and cash-like, but it isn't designed to grow your money over the long run — that's the trade-off for the low risk.

What to look for

The currency A euro fund tracks euro rates and a dollar fund tracks dollar rates — match it to the currency you actually spend.

The benchmark rate Check which short-term rate it follows (like €STR or SOFR) so you know what drives its return.

The ongoing fee (TER) Because returns are small, even a low yearly fee takes a noticeable slice, so it's worth comparing.

Accumulating vs distributing Decide whether you want the interest reinvested automatically (accumulating) or paid out to you (distributing).

Popular Money-market ETFs

A few of the largest, pulled live from the screener — an example, not a recommendation.

Good to know

Is this the same as cash in the bank?

Not quite. It's very low risk and cash-like, but it's still an investment fund, so it isn't covered by bank deposit protection and its value can move slightly.

Can I lose money in one?

Losses are uncommon and usually small, but not impossible — in unusual conditions the value can dip. These funds aim for stability, not a guarantee.

What happens when interest rates change?

The interest these funds pay moves with short-term rates: when central-bank rates rise, the yield tends to rise soon after, and when they fall, it drops too.