Money market funds are a popular choice for investors seeking stability, liquidity, and competitive returns. This guide explores 10 USD-denominated money market funds available in Taiwan, comparing their features, returns, expense ratios, and purchase methods.
Disclaimer: This article is for educational purposes only and does not constitute investment advice. Always review the fund's prospectus before investing.
List of 10 USD Money Market Funds (Updated: October 2023)
Currently, only Yuanta and Mega Bank offer USD money market funds in Taiwan; others are primarily offshore funds.
Expense Ratio Comparison (Avg. 0.5% or lower)
Money market funds typically have lower fees (0.07%–0.52%) compared to bond funds (0.6%–1.2%).
| Fund Name | Expense Ratio | AUM (USD) | Inception Year |
|----------------------------------------|---------------|-----------|----------------|
| UBS (Lux) USD Fund | 0.52% | 3.08B | 1988 |
| Fidelity USD Cash Fund | 0.30% | 1.77B | 2006 |
| Western Asset US Govt MM Fund | 0.07% | 976M | 2007 |
| Franklin USD Short-Term Bond Fund | 0.25% | 605M | 2001 |
| JPMorgan USD Floating NAV Fund | 0.45% | 588M | 2014 |
| BNP USD MM Fund | 0.14% | 555M | 1990 |
| BlackRock USD Reserve Fund | 0.46% | 534M | 1993 |
| Schroders USD Liquidity Fund | 0.30% | 515M | 2001 |
| Yuanta USD MM Fund | 0.24% | 29M | 2016 |
| Mega Bank USD MM Fund | 0.27% | 6M | 2016 |
(Sorted by AUM; no endorsement implied.)
Annualized Returns (5-Year Comparison)
Yields closely track short-term US Treasury rates (e.g., ~5% in 2023 vs. 0.2%–0.8% in 2020–2021).
| Fund Name | 2019 | 2020 | 2021 | 2022 | 2023* |
|----------------------------------------|--------|--------|--------|--------|--------|
| UBS (Lux) USD Fund | 2.01% | 0.68% | 0.04% | 1.26% | 3.72% |
| Fidelity USD Cash Fund | 1.85% | 0.19% | -0.23% | 1.44% | 3.92% |
| Western Asset US Govt MM Fund | 1.57% | 0.20% | 0.01% | 1.18% | 3.48% |
*2023 data as of Oct 2023
👉 Explore top-performing funds
Key Features of USD Money Market Funds
- Yield ≈ Short-Term Treasury Rates: Funds invest in high-quality instruments like T-bills, commercial paper, and repos.
- Liquidity: No lock-in period (unlike fixed deposits).
- Tax Efficiency: Returns classified as offshore income (NT$7.5M tax-free threshold).
USD MM Funds vs. Fixed Deposits
| Feature | USD MM Fund | USD Fixed Deposit |
|------------------------|---------------------------|---------------------------|
| Yield | Tracks short-term rates | Bank-set rate |
| Liquidity | Instant redemptions | Penalty for early exit |
| Tax | Offshore income | Interest income |
Tip: Use MM funds for <1-year holdings or rising-rate environments.
How to Buy USD Money Market Funds?
- Platforms: Fund supermarkets (e.g., Jih Sun Fund) often offer zero fees.
- Banks: Mega Bank, Yuanta.
- Direct: Some asset managers allow purchases.
FAQ
Q1: Are money market funds safe?
A: Very low risk but not zero. Avoid funds with historical drawdowns (e.g., 2008 crisis).
Q2: How to estimate future yields?
A: Monitor the 13-week T-bill rate (Yahoo Finance).
Q3: Best fund for long-term holding?
A: Prioritize funds with long track records (e.g., UBS, Fidelity).
Summary
- USD MM funds offer FD-like returns + liquidity.
- Ideal for parking short-term cash or high-tax-bracket investors.
- Compare expense ratios and track records before investing.
For more insights, read:
👉 Ultimate Guide to Money Market Funds