CLIP vs MMK

CLIPAGlobal X 1-3 Month T-Bill ETF

MMKCState Street Prime Money Market ETF

In short

CLIP Treasury bills, one to three months out, at half the fee of the category's longtime giant. Global X launched CLIP in 2023 as the cheap challenger in the parking-lot corner of the bond market, and it has hugged its index tightly since.

MMK A money market fund that trades like a stock. MMK is built to qualify under Rule 2a-7, and it's the prime version, so State Street's cash desk underwrites short-term credit instead of sticking to government paper only.

Stated mandate

CLIP CLIP seeks to track, before fees and expenses, the price and yield performance of the Solactive 1-3 month US T-Bill Index. It invests in U.S. government Treasury bills with remaining maturities from one month to under three months.

MMK The Fund seeks to maximize current income while maintaining capital preservation and liquidity.

Why people hold it

• CLIP 0.07% a year, half the 0.14% median for its bill-fund cohort and half what category veteran BIL charges for the same one-to-three-month exposure.
• The mandate fits on one line: US Treasury bills maturing in one month to under three, roughly two dozen of them. Government paper only, no corporate credit slipped in.globalxetfs.com
• Sticks to the Solactive 1-3 month US T-Bill Index about as tightly as anything in its peer group, which is the entire job description for a bill fund.
• Distributes monthly, and it has already gathered billions in assets, so it is no thin-ice launch.

• MMK Built to qualify as a money market fund under Rule 2a-7, the same rulebook as traditional money funds, but bought and sold intraday like any ETF.ssga.comstatestreet.com
• Prime mandate, run by State Street's cash management team with a dedicated short-term credit research team behind the paper it buys.ssga.com
• Costs 0.18% a year, a shade under the median for cash-alternative ETFs.
• Measured against the ICE BofA SOFR Overnight Rate Index, so there's a plain overnight-cash yardstick to judge it by.ssga.com

Worth knowing

• CLIP Income comes straight off short-term Treasury rates. Monthly payouts move up and down with those rates rather than sitting at a fixed level.
• It opened in 2023, so the track record is short next to the bill funds it undercuts on fee.
• Volume is respectable, not the deepest in the cohort, and a hair cheaper exists (Vanguard's VBIL at 0.06%). At these fee levels the gap is rounding error.

• MMK A 2026 launch that is still small and thinly traded, which can mean wider bid-ask spreads than long-running cash ETFs.
• Prime paper carries bank and corporate credit risk that government-only money funds sidestep, and the fund is not FDIC insured.statestreet.com
• Cheaper cash options exist: SBIL and IQMM charge 0.15% and ICSH 0.08%, though those run government or ultra-short bond mandates.

Full CLIP profile⁠

Full MMK profile⁠