The Two Fast-Growing Money Market Funds

Money market funds have become one of the attractive asset classes to own this year. Some of these funds are yielding between 4% to 5%. The extreme volatility in the equity markets and investors’ looking for decent yields are helping these funds gain huge inflows. Though these funds are not FDIC-insured and have risks investors are still pouring billions into them.

With that brief intro, let’s take a quick look at the top two money market funds.

The top two finds based on year-to-date inflows are the Vanguard Federal Money Market Fund (VMFXX) and the Schwab Value Advantage Money Fund-Investor Shares (SWVXX) according to a recent journal article.

1.Vanguard Federal Money Market Fund (VMFXX):

This fund has an asset base of over $240 billion and currently has a 5-day SEC yield of 5.02%. The expense ratio is 0.11%. However the fund has a minimum investment of $3,000.00. Dividends are paid out monthly.

2.Schwab Value Advantage Money Fund-Investor Shares (SWVXX)

SWVXX has total net assets of over $120.0 billion. The expense ratio is a bit high at 0.35%. The current 7-day yield is 4.90%. Similar to the Vanguard fund, this fund also pays dividends monthly.

Source: What Investors Should Know About Money-Market Funds and CDs

Disclosure: Long SWVXX

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