“If reform goes through, then money market funds will likely shrink because investors will not find [them]as useful or appealing,” Joan Ohlbaum Swirsky, of counsel at Stradley Ronon, said in the article. “If funds shrink, then demand for short-term instruments may decline.”
However, investors could just shift their focus to short-term exchange traded funds as an alternative. Short-duration ETFs include PIMCO Enhanced Short Maturity Strategy (NYSEArca: MINT), SPDR Barclays 1-3 Month T-Bill (NYSEArca: BIL), iShares Barclays Short Treasury Bond (NYSEArca: SHV) and Guggenheim Enhanced Short Duration Bond (NYSEArca: GSY). [Are Short-Duration ETFs the ‘Heirs to Money Market Funds?’]
For more information on the money markets, visit our money markets category.
Max Chen contributed to this article.