Fidelity and Charles Schwab have expanded their long-standing restrictions on third-party money-market mutual funds to now include third-party money-market ETFs—an update that significantly impacts RIA access to broader cash management solutions.
A Schwab spokesperson stated the move is consistent with the firm’s ongoing strategy: “We only offer Schwab-affiliated money market mutual funds as part of our cash management offerings.” Fidelity echoed that stance, noting this is simply an extension of its existing restrictions on third-party money market products.
The policy change, enacted earlier this year, affects ETFs from BlackRock and Texas Capital. Both Schwab and Fidelity continue to provide proprietary cash management vehicles—ranging from in-house money-market funds to CDs and high-yield savings accounts.
Texas Capital, whose Government Money Market ETF (MMKT) launched in September 2024, expressed disappointment. “It’s unfortunate and surprising,” a spokesperson said. “We believe investors should decide where to allocate cash. MMKT should be accessible like any NYSE-listed security.”
BlackRock, whose iShares suite includes the Prime Money Market ETF (PMMF) and the Government Money Market ETF (GMMF), emphasized innovation and investor flexibility. “iShares Money Market ETFs offer professional-grade cash management in a convenient ETF wrapper, giving investors more choice,” said a company representative.
Money-market funds remain a critical component of conservative portfolio construction, investing in short-term instruments such as Treasury bills and repurchase agreements. Their popularity has surged amid a high-rate environment, with assets recently hitting $7.03 trillion, per Investment Company Institute data.
Both Schwab and Fidelity confirmed they are not making third-party money-market ETFs available to RIAs or retail clients. “We continuously assess offerings based on client needs,” Schwab noted. “Our lineup already includes competitive Schwab Asset Management-advised products.”
Earlier this month, Schwab’s asset management unit filed with the SEC to launch its own money-market ETF: the Schwab Government Money Market ETF, adding to its existing in-house options like the Schwab Value Advantage Money Fund (SNAXX), which currently offers yields up to 4.3% on its “Ultra” shares.
As leading custodians, Schwab and Fidelity wield significant platform influence over fund accessibility for RIAs. This latest development underscores that reach—particularly as fund providers look to these platforms to drive flows and visibility.
Texas Capital’s MMKT, while excluded from Schwab and Fidelity, remains available through other brokerages. The ETF offers a 30-day SEC yield of 4.49% (as of Feb. 28), charges a 0.20% expense ratio, and has gathered $45.1 million in assets, according to Morningstar.
BlackRock’s PMMF and GMMF are similarly priced at 0.20% expense ratios, with 30-day yields of 4.26% and 4.15%, respectively. PMMF has attracted $145 million in assets, while GMMF holds $33 million.
For RIAs, the shift restricts flexibility in managing client cash positions across custodians. “It’s frustrating,” says John Bell, CFP and founder of Free State Financial Planning. “While yields are similar across funds, advisors value open architecture and product choice. When it’s removed, it adds friction.”
As Schwab and Fidelity double down on proprietary offerings, RIAs navigating cash strategies will likely need to weigh client needs, yield priorities, and platform constraints more carefully than ever.
