Proposals to reform traditional money-market funds are giving a boost to exchange-traded funds and other alternatives that don't stick to constant net asset values and pay higher yields.

Temporary losses and some high-profile closures after the 2008 global financial crisis have "tarnished money markets as an investment option for many income investors," says John Sajdak, head of fixed income at MainStreet Advisors in Chicago, which manages $2bn in assets.