vanguard money market funds

vanguard money market funds

Vanguard offers several money market funds, each with slightly different characteristics. Here’s a summary of their key features:

General Features:

  • Investment Objective: Provide current income while maintaining liquidity and a stable share price of $1.
  • Minimum Investment: $3,000
  • Expense Ratio: 0.10% or lower
  • Liquidity: Highly liquid, allowing for easy access to your money without penalty in most cases.
  • SIPC Coverage: Up to $500,000 for securities held in your Vanguard Brokerage Account.

Available Money Market Funds:

  • VMFXX – Vanguard Federal Money Market Fund: Invests primarily in U.S. government securities and repurchase agreements with government collateral. It’s considered the most conservative option.
  • VMUSX – Vanguard Municipal Money Market Fund: Invests in short-term, tax-exempt debt issued by U.S. municipalities and their agencies. Offers tax-exempt income for qualified investors.
  • VMMXX – Vanguard Prime Money Market Fund: Invests in a broader range of high-quality, short-term securities, including U.S. government and corporate bonds. May offer slightly higher yields than VMFXX, but with slightly more risk.
  • VMRXX – Vanguard Admiral Money Market Fund: Similar to VMMXX, but requires a higher minimum investment ($10,000) and offers a lower expense ratio due to its larger size.

vanguard money market funds

Additional Information:

  • You can find complete information on each fund, including its investment objective, holdings, performance, and fees, on the Vanguard website:
  • Money market funds are generally suitable for short-term savings goals or emergency funds.
  • While they offer higher yields than traditional savings accounts, they may not keep pace with inflation.
  • Consider your investment goals, risk tolerance, and time horizon before choosing a money market fund.

It’s important to remember that I am not a financial advisor and this is not financial advice. Please consult with a professional before making any investment decisions.

I hope this information is helpful! Let me know if you have any other questions.

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