High Yield
🎉 Best Money Market Funds for Your Portfolio 🚀

Exploring the Relevance of Money Market Funds in Today's Economy

With all the banks lowering their fixed deposit rates (even when Fed haven’t dropped their rates!), the benefit of money market funds is on the rise. These funds are particularly attractive for those seeking decent returns without venturing into high-risk territories. Money market funds focus on short-term securities like government and corporate bonds and are a staple offering among numerous financial institutions.

Spotlight on Leading Money Market Funds

We've curated a list of top money market funds that merit consideration for inclusion in your investment portfolio (You can buy them in your major US brokerages):

1. Vanguard Federal Money Market Fund (VMFXX): Prioritizes investments in short-term U.S. government securities, boasting a yield of 5.27% and maintaining substantial liquidity with $288.7 billion in assets.

2. JPMorgan Prime Money Market Fund (VMVXX): Focuses on low-volatility securities like U.S. government and top-rated corporate debt, with a yield of 5.07% and assets worth $85.4 billion.

3. Schwab Value Advantage Money Fund (SWVXX): This fund spans a variety of issuers to maximize income, featuring a yield of 5.19% and $180.7 billion in assets.

4. Invesco Government Money Market Fund (INAXX): Invests almost entirely in government-backed securities, offering a 5.02% yield and $5.4 billion in assets.

5. Fidelity Money Market Fund (SPRXX): Aims for high current income through domestic and international short-term securities, with a yield of 5.03% and managing $105 billion.

6. Vanguard Municipal Money Market Fund (VMSXX): Seeks tax-exempt income, primarily investing in municipal bonds, yielding 3.23% with $17.2 billion in assets.

Understanding Money Market Funds

Money market funds are a type of mutual fund designed for investors who need high liquidity with a balanced risk profile. They maintain a stable $1.00 NAV and offer yields reflective of current interest rates, making them safer than many other types of investments, though they are not FDIC-insured.

Choosing the Right Money Market Fund

When selecting a money market fund, consider the yield, expense ratio, and specific fund type (government, prime, or municipal) based on your tax situation and investment goals. Also, be aware of any potential fees associated with buying or selling the funds.

Conclusion

Money market funds are a compelling option for investors looking to capitalize on higher interest rates or save for short-term goals. By investing in high-quality, short-term securities, these funds offer both income and peace of mind through maintained liquidity and stability.

And if you want to invest in MMF, there is a simple way to do it - Betterment.

Betterment’s high-yield cash account provides up to 5% APY and its FDIC insurance covers your money up to ($2 million ($4 million for joint accounts), meaning you won’t have to sacrifice security for growth.

You can check it out here

Put your money to work in a high-yield cash account with up to $2M in FDIC† insurance through program banks.

Get started today, with as little as $10.

Wish you successful investing! Let's make it happen,

Pete