Global X has launched a new fixed income ETF in Hong Kong providing actively managed exposure to money market instruments denominated in US dollars.

The ETF delivers access to a USD-denominated cash management strategy.

The Global X USD Money Market ETF (3137 HK) has been listed on the Stock Exchange of Hong Kong in Hong Kong dollars.

The fund, which is designed to be a cash management tool, invests in USD-denominated short-term deposits and high-quality money market instruments issued by governments, quasi-governments, international organizations, and financial institutions worldwide.

Eligible types of money market instruments include debt securities, commercial papers, short-term notes, certificates of deposits, and commercial bills.

The ETF may invest up to 30% of its assets in short-term deposits and high-quality money market instruments that are issued in emerging markets.

When selecting constituents, Global X assesses the liquidity profile based on time to cash, external liquidity classification, liquidation horizon, daily trading volume, price volatility, and bid-ask spread. Only instruments with sufficient liquidity will be included in the portfolio.

The fund will maintain a weighted average maturity below 60 days and a weighted average life not exceeding 120 days.

The ETF has estimated ongoing charges over a year of 0.45%.

Distributions are made to investors on an annual basis, usually in September.