iShares Australia has launched two new cash ETFs, offering investors exposure to the Aussie dollar and bank rate.

The iShares Core Cash ETF (BILL:AU) and iShares Enhanced Cash ETF (ISEC:AU) will physically track the S&P bank bill index by investing in term deposits and money markets.

The difference between the two ETFs is that while BILL will track the bank rate, ISEC will try to beat it by holding floating rate notes.

Both funds will declare all their holdings every day on iShares' website. Both are designed to be fully liquid.

"We're seeing most interest from Australian investors, who find it difficult to access the bank bill swap rate," John Howie, the CEO of iShares Australia, told ETF Stream.

"Cash accounts are not paying a good interest rates and sometimes it's difficult to access good rates unless you have term deposits."

Management fees will be 7 and 12 basis points respectively.