To The Moon

When investors think about markets, the first ideas that usually come to mind are stocks, ETFs, and the volatility of equity funds.

Over the past year, equities in Asia have drawn renewed attention:

Mainland indices reached multi-year highs.

Hong Kong markets rebounded, supported by policy tailwinds and overseas-listed companies returning home.

But as always, equity markets can be volatile. Many investors are now asking: Is there a more stable product to manage capital in between trades?

One often overlooked option is the Money Market Fund (MMF). While widely used by institutions and retail investors alike, MMFs are rarely studied in detail. Their core strengths are stability, liquidity, and ease of use—making them an ideal short-term cash management tool. In this article, we’ll break down what MMFs are, how they differ from money market ETFs, and how investors can use them in practice.

1.What Are MMFs, and How Do They Differ from Money Market ETFs?

Money Market Funds (MMFs): MMFs typically invest in Treasury bills, central bank notes, certificates of deposit, and other short-term, highly liquid, and high-quality instruments. Their goal is to provide stable returns with flexible redemption. Most MMFs settle on T+1, though some support same-day (T+0) redemptions.

Money Market ETFs: These are structurally similar, but they trade on exchanges just like stocks. Investors can buy or sell intraday, which means higher liquidity and efficiency for active traders.

In short: MMFs function like a digital cash wallet, while money market ETFs are more like an exchange-traded version of that wallet, offering real-time trading flexibility.

2.Yields, Costs, and Stability

What should investors expect from MMFs available through international platforms?

Yields: U.S. dollar-denominated MMFs currently deliver annualized yields of 4%–5%, competitive with other short-term instruments.

Fees: Management fees are typically below 0.30%, significantly lower than active equity funds, which often charge 1% or more.

Stability: Because MMFs are backed by short-term debt and deposits, volatility is minimal. Investors should not expect large swings in net asset value.

In other words, MMFs are designed for predictable returns, not outsized capital appreciation.

3.Liquidity Advantage

Equities are often compared to a roller coaster. By contrast, MMFs act as a liquid holding account. Most support T+0 or T+1 redemptions, meaning funds can be accessed within the same day or the next business day.

This flexibility makes MMFs ideal as a parking place for idle cash. Investors can temporarily allocate capital to MMFs, earning steady interest while waiting for better entry points in equities or ETFs.

4.Use Cases for MMFs

MMFs are not just for institutions—they play a role in everyday portfolio management. Common use cases include:

Emergency Fund Management: Holding 3–6 months of living expenses in an MMF ensures capital is both safe and accessible.

Short-Term Cash Parking: For example, if you plan to add equity exposure in two months, you can hold funds in an MMF in the meantime, keeping liquidity while earning a modest yield.

For this reason, MMFs are often considered a core layer of portfolio construction, useful for almost all types of investors.

5.How to Access MMFs

There are generally two main access routes:

Off-Exchange Channels: Through banks or fund company platforms. These options are simple to use and don’t require a brokerage account. The trade-off: redemptions are usually T+1, and pricing is fixed daily rather than intraday.

Exchange-Traded Channels: Through a brokerage account, MMFs can be traded like stocks, offering real-time liquidity and transparent pricing. This requires a trading account and is slightly more advanced for beginners.

For investors in Hong Kong or Singapore, MMFs are widely available through platforms such as Tiger Trade, under the wealth management section. For other regions, investors can access money market ETFs on exchanges—for example, the CSOP HKD Money Market ETF ( $A CSOP HKD MM(03053)$ .HK) in Hong Kong, or U.S.-listed products such as iShares Prime Money Market ETF ( $ISHARES PRIME MONEY MARKET ETF(PMMF)$ )

6.Invest in China with Tiger—your one-stop solution

Bullish on China but not sure how to allocate? With one Tiger account, you can invest in a range of China-related assets:

A-shares Connect: $HUATAI-PINEBRIDGE CSI 300 INDEX TRADING SECURITIES INVESTMENT FUND(510300)$ ; $CARD IN 500 EXCHANGE-TRADED INDEX SECURITIES INVESTMENT FUND(510500)$ ; $E-FUND GEM TYPE OPEN INDEX TRADING SECURITIES INVESTMENT FUND(159915)$ $Contemporary Amperex Technology Co.,Ltd.(300750)$ ; $Kweichow Moutai Co.,Ltd.(600519)$

Hong Kong Market: $Xinjiang Tianshun Supply Chain Co.,Ltd.(002800)$ $HSCEI ETF(02828)$ $CAM MSCI A50(02839)$ ; $TENCENT(00700)$ , $MEITUAN-W(03690)$ , $CHINA MOBILE(00941)$

US Markets: $Xtrackers Harvest CSI 300 China A-Shares ETF(ASHR)$ , $KraneShares CSI China Internet ETF(KWEB)$ , $iShares China Large-Cap ETF(FXI)$ , $Alibaba(BABA)$ , $BIDU-SW(09888)$ $PDD Holdings Inc(PDD)$

In addition, Tiger Trade’s signature features—TigerAI and Recurring Investment—make it easier to build exposure to Chinese assets:

• TigerAI Investment Assistant: New to Chinese assets? Ask anytime—e.g., “Which ETFs track the CSI 300?” or “Which China ADRs are trending lately?”—and get answers instantly.

• Recurring Investments for HK stocks & ETFs: Worried about timing? Tiger Trade supports daily/weekly/monthly recurring plans for Hong Kong stocks and ETFs to average your cost, build long-term positions, and pursue steadier outcomes.

Disclaimer: This article provides market insights and investment ideas, not financial advice. Investing carries risks—please invest prudently.