Money market funds can help investors diversify risks and provide better liquidity amid volatile global markets, Value Partners (0806) said, as the Hong Kong-based asset manager listed its first three money market exchange-traded funds on Thursday.

Alex Chiu, senior strategist for ETF business at Value Partners, said that

While various asset classes have rallied this year, investors are increasingly turning to defensive tools such as gold and money market funds, said Alex Chiu, senior strategist for ETF business at Value Partners.

Chiu added that money market products also serve as a place to park cash, offering flexibility through daily subscriptions and redemptions, particularly amid a hot initial public offering market.

Chiu noted that Hong Kong’s ETF market has grown steadily in recent years, with numerous Hong Kong equity-linked products launched. He expects more ETFs linked to virtual assets in the future, following broader trends across Asia.

Gordon Ip, chief investment officer for fixed income at Value Partners, said money market funds allocate cash deposits, certificates of deposit and a small portion of bonds to influence fund yields and aim to deliver returns above market levels across different market conditions.

STAFF REPORTER

Value Partners lists first money market ETFs, citing risk diversification and liquidity benefits