Vanguard is a well-known investment management company that offers a variety of investment options to its clients. One of its most popular offerings is the Vanguard Money Market Funds (VMFXX). VMFXX is a type of mutual fund that invests in short-term, high-quality securities, such as U.S. Treasury bills and commercial paper. The goal of these funds is to provide investors with a safe haven for their cash while earning a decent rate of return.
Money market funds are low-risk investments for parking your cash, earning interest while providing very good liquidity. These funds are ideal for investors who are looking to park their cash for a short period and earn a higher interest rate than they would from a traditional savings account. Money market funds are also a good option for investors who are looking for a safe place to invest their cash while they wait for a better investment opportunity to come along.
With interest rates higher than they've been in some time, savers and investors are once again able to earn decent rates of return in their money market funds. In fact, VMFXX has recently started to increase its yield in response to rising rates. As of September 2021, VMFXX has a 7-day yield of 0.09% and an expense ratio of 0.11%.
Investors looking for safety of principal in a brokerage account can consider these funds. VMFXX is a great option for investors who are looking for a low-risk investment that is still accessible through their brokerage account. In fact, many brokerage firms offer VMFXX as an option to their clients.
As interest rates rise, the low-cost fund giant apparently sees an opportunity to eliminate fee waivers put in place when rates were near zero. The company is expected to raise fees on its money market funds, including VMFXX, to offset the cost of the fee waivers. However, even with the expected fee increase, VMFXX will still have a relatively low expense ratio compared to other mutual funds.
I've been bearish on the markets over the last year. Check out the tactics of how to execute a bearish strategy and earn as much money as possible. While this may be true, investors who are looking for a safe haven for their cash should consider VMFXX as an option. While there are no guarantees in investing, VMFXX is a low-risk investment option that can provide investors with a decent rate of return.
The Roth IRA is widely lauded as one of the best ways to save for retirement, and for good reason. While the contribution limits are fairly low, the tax-free growth and withdrawals make it an attractive option for many investors. VMFXX can be a great option for investors who are looking for a safe place to park their cash while they wait to invest in their Roth IRA.
As the brokerage 1099 forms for 2022 are coming out, here is a quick reminder for those in states with local income taxes. VMFXX is a great option for investors who are looking to earn a decent rate of return while avoiding state and local income taxes. Since VMFXX invests in short-term, high-quality securities, it is exempt from state and local income taxes in most cases.
If you're not paying attention to the yields and interest that you can earn in your savings accounts, now is the time to start. VMFXX is a great option for investors who are looking to earn a higher rate of return on their cash than they would from a traditional savings account. While the yield on VMFXX may not be as high as some other investments, it is a low-risk option that provides investors with good liquidity.
Ally Invest is the self-directed brokerage arm of Ally Financial, and you may have an account from previous TradeKing and/or Zecco mergers. Ally Invest offers a variety of investment options to its clients, including VMFXX. Investors who are looking for a low-risk investment option can consider opening an account with Ally Invest and investing in VMFXX.
Ticker: VMFXX
