Best ETFs for Stable Returns and Cash Management in 2025

Exchange-Traded Funds (ETFs) offer investors a cost-effective and diversified way to allocate capital, and money market or short-term bond ETFs provide stable returns with minimal risk. If you're looking for low-volatility investment options, particularly in overnight rates, money market instruments, or short-duration government bonds, we have analyzed some of the best-performing ETFs available in 2025.

1. Best for Ultra-Low Risk Cash Management

Phillip SGD Money Market ETF

• NAV: SGD 103.604
• Annual Performance: Stable, primarily tracking short-term SGD money markets
• Why Invest? This ETF is ideal for Singapore-based investors looking for a safe place to park their cash while earning returns similar to short-term fixed deposits or high-yield savings accounts. However, recent returns have been flat or slightly negative, making it less attractive compared to USD or EUR alternatives.

2. Best for Euro-Denominated Short-Term Investments

Xtrackers II EUR Overnight Rate Swap UCITS ETF

• NAV: EUR 145.494
• Annual Return: 3.61%
• Why Invest? If you're looking for a euro-denominated money market ETF, this one provides a stable return linked to overnight swap rates. It's low risk and offers better returns than traditional savings accounts while maintaining liquidity.

Amundi EUR Overnight Return UCITS ETF

• NAV: EUR 110.860
• Annual Return: 3.51%
• Why Invest? Another solid euro-denominated option, ideal for investors who want exposure to European short-term rates without taking on significant credit risk. It performs similarly to Xtrackers II EUR Overnight ETF but with a slight difference in yield and liquidity.

3. Best for USD-Denominated Short-Term Investments

Amundi Fed Funds US Dollar Cash UCITS ETF

• NAV: USD 119.41
• Annual Return: 5.05%
• Why Invest? This ETF tracks the U.S. Federal Funds rate and offers a higher yield than its EUR and SGD counterparts. With current U.S. interest rates being relatively high, this is one of the best low-risk options for investors holding cash in USD.

4. Best for Diversified Short-Term Bond Exposure

Amundi Govies 0-6 M Euro Investment Grade UCITS ETF

• NAV: EUR 123.450
• Annual Return: 3.42%
• Why Invest? Instead of tracking overnight rates, this ETF invests in short-duration European government bonds (0-6 months maturity). This makes it a great alternative to traditional money market funds, with a slightly higher risk-reward profile.

5. Best for High Liquidity with a Slightly Higher Yield

Lyxor Smart Overnight Return UCITS ETF

• NAV: EUR 1,186.68
• Annual Return: 10.12%
• Why Invest? This ETF stands out by offering a higher annual return, but with slightly more risk compared to traditional overnight rate ETFs. For those looking for an ETF that still retains high liquidity but has potential upside, this is worth considering.

Conclusion: Which ETF is Right for You?

• For Singapore-based investors: The Phillip SGD Money Market ETF is a conservative choice.
• For euro investors: The Xtrackers II EUR Overnight Rate Swap UCITS ETF is a reliable and low-risk pick.
• For USD cash holdings: The Amundi Fed Funds US Dollar Cash UCITS ETF provides the highest yield.
• For a diversified short-term bond approach: The Amundi Govies 0-6 M Euro Investment Grade UCITS ETF offers solid stability.
• For higher potential returns with slightly more risk: The Lyxor Smart Overnight Return UCITS ETF is worth considering.

Each of these ETFs provides a balance of stability, liquidity, and yield, allowing investors to efficiently manage cash reserves while optimizing returns. Before investing, always consider your risk tolerance, currency exposure, and investment horizon.