iShares Enhanced Cash ETF (ISEC) — Review & Analysis

ISEC is iShares' enhanced cash product, sitting between pure cash and active cash-plus in design. AUM is $554.07 million as at May 2026 with a 0.12% p.a. management fee — 5bp above iShares' sister product BILL (0.07%) and 6bp below AAA (0.18%). The fund holds short-dated money market instruments with a small allocation to investment-grade credit to enhance yield over a pure bank bill benchmark. Compare ISEC across the full cohort on our high interest cash ETF page.

The structural distinction from BILL is the modest credit allocation. BILL stays clean on credit by sticking to bank bills; ISEC adds short-dated investment-grade corporate paper to harvest a small yield premium without taking meaningful duration risk. Average portfolio maturity stays under 12 months. The benchmark is the Bloomberg AusBond Bank Bill Index, with active over- and underweighting around that.

ISEC's closest functional peers are MMKT and MONY — all three target cash-plus yield through short-duration credit allocations. ISEC differentiates on the iShares brand and the slightly more conservative credit profile (lower allocation, shorter maturity than the actively managed alternatives).

For investors who want a small yield uplift over pure cash but prefer the iShares brand and rules-based construction over fully active management, ISEC is the natural choice. The 0.12% fee is competitive across the cash-plus cohort. Our best cash ETFs guide covers the yield-vs-risk trade-off across all six cash and cash-plus options.