Treasury bills, certificates of deposit, and commercial paper. However, the Vanguard Prime fund seeks to maintain a stable net asset value of $1.
Vanguard Money Market Yield Comparison: Current Rates and Earnings
The composition of these holdings is designed to preserve capital while generating modest interest income, making it a suitable location for emergency funds or short-term savings goals. This liquidity profile is superior to that of certificates of deposit, which often penalize early withdrawal.
Furthermore, investors must consider the impact of state and local taxes, as some funds invest in securities that are exempt from these specific levies. For investors valuing flexibility, the ability to move funds seamlessly between cash and the market is a significant benefit.
Vanguard Money Market Yield Comparison and Current Rates
Before allocating cash to VMMXX, individuals in high tax brackets should compare the taxable yield to that of a municipal bond fund or a high-yield savings account to determine the true after-tax return. 24% Expense Ratio 0.
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