Money Market ETF Comparison 2026
Money market ETFs are the ETF alternative to an instant-access savings account: they park cash at short-term money-market rates (€STR), barely fluctuate and are tradable on every exchange day. We explain how they work, compare the most important products and show the pros and cons versus a savings account.
What is a money market ETF?
A money market ETF (Money Market ETF) tracks the short-term money-market rate — in the eurozone the €STR (Euro Short-Term Rate), which the ECB publishes daily. It sits very close to the ECB deposit rate. In practice you park cash at the current daily rate without locking your money away — the price rises almost in a straight line, because there is barely any volatility behind it.
The most important money market ETFs compared
There are two designs: €STR swap ETFs (which replicate the rate via a swap) and ultrashort bond ETFs (which hold real, very short-dated bonds). In practice both deliver a very similar result close to the money-market rate.
UCITS money market ETFs (as of June 2026)
| ETF | ISIN | TER p.a. | Design |
|---|---|---|---|
| Xtrackers II EUR Overnight Rate Swap | LU0290358497 | 0.10 % | €STR Swap |
| Amundi EUR Overnight Return (ex-Lyxor) | FR0010510800 | 0.10 % | €STR Swap |
| iShares € Ultrashort Bond | IE00BCRY6557 | 0.09 % | Ultrashort bonds |
| Xtrackers II ESG EUR Overnight Rate Swap | LU0335044896 | 0.10 % | €STR Swap (ESG) |
Money market ETF vs. instant-access savings account
| Criterion | Money market ETF | Savings account |
|---|---|---|
| Interest | ≈ €STR (variable) | Bank teaser rate, often time-limited |
| Deposit protection | no (but segregated assets) | €100,000 per bank |
| Availability | tradable every exchange day | daily |
| Costs | ~0.10 % TER + order costs | none |
| Tax | taxed as investment income; rules vary by country | interest taxed as investment income |
Unlike a savings account, a money market ETF does NOT fall under the statutory €100,000 deposit guarantee. In return it is held as segregated fund assets: if the provider goes bankrupt, the fund assets still belong to the investors and do not fall into the insolvency estate. The residual risk lies in the design (swap counterparty or bond credit quality), but for these products it is small.
Who is a money market ETF worth it for?
- Parking cash in your portfolio: money waiting for the next purchase earns the money-market rate instead of 0 %.
- Emergency-fund alternative for anyone who already has a brokerage account and doesn’t want to keep hopping between savings accounts.
- Stability building block instead of long-dated bonds, when price stability matters more than yield.
FAQ — Money Market ETF 2026
Which money market ETF is the best?
Common, low-cost standard products are the Xtrackers II EUR Overnight Rate Swap (LU0290358497) and the Amundi/ex-Lyxor EUR Overnight Return (FR0010510800), each with a TER of around 0.10 % — both track the €STR. If you’d rather hold real short-dated bonds instead of a swap, the iShares € Ultrashort Bond (IE00BCRY6557) is the choice.
How high is the yield of a money market ETF?
It roughly equals the €STR minus the TER. The €STR sits very close to the ECB deposit rate and moves with monetary policy — if the ECB cuts rates, the yield of the money market ETF falls too. There is no fixed, guaranteed rate.
Is a money market ETF safe?
Volatility is minimal and the fund assets are protected as segregated assets. However, there is no statutory deposit guarantee as with a savings account. For parking cash short term, these products are considered very low-risk, but they are not entirely risk-free.
Money market ETF or savings account — which is better?
Both park cash. An instant-access savings account offers the statutory deposit guarantee and often time-limited teaser rates; a money market ETF offers the variable market rate without account-hopping and stays in your portfolio. If you already have a brokerage account and want to stay flexible, the ETF is more convenient; if you want maximum safety and a guaranteed rate, choose a savings account.