Key Highlights

• Management fee of 0.07% per annum, among the lowest available on the ASX; fund size of $1.20 billion

• Annual distribution Yield of 4.08%, paid monthly; latest distribution of $0.340 per unit for September 2026

• 100% cash allocation tracking the S&P/ASX Bank Bill Index; 78 individual holdings across bank bills and deposits

• 52-week price range of $100.37 to $100.86, reflecting near-zero Capital Volatility characteristic of cash instruments

The iShares Core Cash ETF (ASX:BILL) provides Australian investors with exchange-traded access to the short-term money market, tracking the S&P/ASX Bank Bill Index. Admitted to the ASX on 6 June 2017, the fund has grown to $1.20 billion in assets, making it one of the largest cash-oriented ETFs on the Australian market. BILL offers the practical convenience of a Listed security — intraday tradability, transparency, and brokerage-based accessibility — combined with the return characteristics of the short-term bank bill and deposit market. For investors or portfolio managers seeking a liquid, capital-stable Cash Management solution within a brokerage account, BILL occupies a well-defined and widely used niche.

Benchmark and Investment Mandate

BILL tracks the S&P/ASX Bank Bill Index, which measures the total return of the Australian bank bill market. The index comprises short-dated, high-credit-quality instruments including bank bills and bank deposits, predominantly issued by major Australian and international banks with strong Credit ratings. The fund employs a passive investment strategy, seeking to replicate the index's return as closely as possible. As a cash-focused product, the fund's return is directly linked to prevailing short-term interest rates in Australia, which in turn reflect the Reserve Bank of Australia's policy rate settings.

Portfolio Composition

BILL holds 78 individual positions across a range of bank bills, short-term deposits, and Money Market instruments. The top 10 holdings represent 46.71% of the fund. The largest single position is an RBC Money Market 11AM product at 26.60%, followed by ANZ Group Holdings at 4.14%, Sumitomo Mitsui Banking Corporation (Sydney) at 3.32% and 2.49%, an AUD Cash position at 1.83%, Oversea-Chinese Banking Corp (Sydney) at 1.66%, Norfina Ltd at 1.66%, ING Bank N.V. (Sydney) at 1.66%, and two United Overseas Bank positions at 1.65% and 1.64%. The asset allocation is 100% cash, with zero Equity or bond exposure. Geographic exposure data is not broken down given the nature of the short-term deposit and money market instruments held.

Distribution Profile

BILL distributes monthly income, reflecting the regular accrual of interest on the underlying bank bill and deposit portfolio. The September 2026 distribution was $0.340 per unit. The August 2026 distribution was notably higher at $0.446, while July 2026 and June 2026 distributions were $0.335 and $0.351 respectively, and May 2026 was $0.333. The elevated August figure may reflect timing differences in income accrual. The annualised yield of 4.08% aligns closely with prevailing short-term money market rates in Australia, reflecting the RBA's policy rate settings at the time of measurement. Investors should note that as interest rates change, the distribution yield will adjust accordingly — unlike fixed-rate bond products, BILL's income is floating with the short-term rate environment.

Risk Profile and Volatility

BILL's risk metrics reflect its nature as a cash instrument. The 52-week trading range of $100.37 to $100.86 is an extraordinarily narrow band for an exchange-traded product, with total price variation of just $0.49 over a full year. The Standard Deviation of 0.14 is exceptionally low and consistent with the near-zero capital volatility expected from a short-term money market fund. The Beta of 1.96 against its benchmark is a statistical artefact of the very narrow price movements involved rather than an indicator of meaningful volatility. Capital loss is not a significant risk feature of BILL given the very short duration of its underlying holdings, though credit risk from the issuers of the bank bills and deposits — primarily major Australian and international banks — remains a theoretical consideration.

Fund Size, Liquidity, and Fee Structure

With $1.20 billion in Assets and 11.93 million units outstanding, BILL is a substantial and liquid fund. Average daily trading Volume of 36,267 units provides adequate Liquidity for most retail and institutional investors. The management fee of 0.07% per annum is among the lowest available in the entire Australian ETF market and is highly competitive against bank transaction accounts and term deposit rates when total net yield is considered. The bid-offer spread is tight given the fund's size and liquidity, and the unit price is designed to remain close to $100. Total returns were consistently positive across all measured horizons: 0.35% over one month, 1.17% over three months, 2.19% over six months, 4.07% over one year, and 4.29% over three years — fully reflecting the income accrual from the underlying bank bill portfolio.

BILL is a purpose-built cash management vehicle that provides investors with exposure to the Australian short-term money market through a transparent, exchange-traded format. The fund's $1.20 billion scale, 0.07% management fee, monthly income distributions at a 4.08% annualised yield, and near-zero capital volatility collectively make it one of the more straightforward fixed income products available on the ASX. The fund's floating yield means income rises when short-term rates increase and declines when rates fall, which distinguishes it from fixed-rate bond products. For investors holding excess cash within a brokerage or Superannuation account, BILL provides a cost-efficient, highly liquid alternative to bank deposits while maintaining the flexibility of intraday exchange-traded access.