VMFXX earns roughly 4% on short-term Treasuries while charging just 0.11% in fees, versus the FDIC national CD average of under 2%.
High-tax state investors may net more after taxes in VUSXX, which holds more direct Treasuries and generates cleaner state-tax exemptions than VMFXX.
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If you opened a Vanguard brokerage account and never picked a "cash" option, your uninvested dollars almost certainly landed in the Vanguard Federal Money Market Fund (NASDAQ:VMFXX). That default status means it holds more idle cash than any investor consciously chose to put there, and in the current rate environment, that corner of your account generates real yield on Treasury bills instead of the near-zero return a checking account pays.
VMFXX is Vanguard's flagship government money market fund and the automatic settlement vehicle for most Vanguard retail brokerage accounts. It invests in short-dated U.S. government securities, primarily Treasury bills and repurchase agreements collateralized by government paper, with an expense ratio of 0.11%. Because it is the fund your cash gets swept into by default, most holders own it without comparing it to alternatives.
#vmfxx #account #government #treasuries
High-tax state investors may net more after taxes in VUSXX, which holds more direct Treasuries and generates cleaner state-tax exemptions than VMFXX.
Don't wait: the **** yst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.
If you opened a Vanguard brokerage account and never picked a "cash" option, your uninvested dollars almost certainly landed in the Vanguard Federal Money Market Fund (NASDAQ:VMFXX). That default status means it holds more idle cash than any investor consciously chose to put there, and in the current rate environment, that corner of your account generates real yield on Treasury bills instead of the near-zero return a checking account pays.
VMFXX is Vanguard's flagship government money market fund and the automatic settlement vehicle for most Vanguard retail brokerage accounts. It invests in short-dated U.S. government securities, primarily Treasury bills and repurchase agreements collateralized by government paper, with an expense ratio of 0.11%. Because it is the fund your cash gets swept into by default, most holders own it without comparing it to alternatives.
#vmfxx #account #government #treasuries
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