PMMF: Working As Designed

Binary Tree Analytics 5.83K Followers Follow Summary iShares Prime Money Market ETF offers intraday liquidity and regulatory protections under SEC Rule 2a-7, enhancing traditional money market fund structures. PMMF currently emphasizes repos and CDs, maintaining a short 40-day weighted average maturity and a 3.7% SEC yield with weekly distributions. PMMF has consistently outperformed both T-Bill ETFs and large mutual fund money market peers, delivering small but reliable alpha within a tightly regulated framework. Utilizing PMMF as a cash parking vehicle provides both yield and a robust hedge, avoiding the value destruction seen in traditional hedging strategies. Abstract Aerial Art/DigitalVision via Getty Images Thesis We started covering the iShares Prime Money Market ETF ( PMMF ) last year, when we highlighted for investors the intra-day liquidity features brought about by PMMF versus traditional money market funds. In today's This article was written by Binary Tree Analytics 5.83K Followers Follow With a banking trading background, Binary Tree Analytics ('BTA') aims to provide transparency and analytics in respect to capital markets instruments and trades. BTA focuses on CEFs, ETFs and Special Situations, and aims to deliver high annualized returns with a low volatility profile. We have been investing for 20 years after obtaining a Finance major at a top university. Analyst’s Disclosure: I/we have a beneficial long position in the shares of PMMF either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.