What's a money market fund?
A type of fixed income mutual fund that invests only in highly liquid, short-term debt. These funds offer high liquidity with a very low level of risk.
A strong track record
- Performance
- Cost
100%
of our money market funds outperformed their peer-group averages.*
56%
The average expense ratio of Vanguard's money market funds is 56% less than the industry average.**
100%
of our money market funds outperformed their peer-group averages.*
56%
The average expense ratio of Vanguard's money market funds is 56% less than the industry average.**
- Performance
- Cost
| Fund | Strategy | Initial investment | Average 7-day SEC yield as-of — | Expense ratio*** |
| VMRXX Vanguard Cash Reserves Federal Money Market Fund |
Short-term U.S. government securities | $3,000 | — | 0.10% |
| VMFXX Vanguard Federal Money Market Fund |
Short-term U.S. government securities | $3,000 | — | 0.11% |
| VUSXX Vanguard Treasury Money Market Fund |
Short-term U.S. Treasuries | $3,000 | — | 0.09% |
| VMSXX Vanguard Municipal Money Market Fund |
Short-term tax-exempt securities | $3,000 | — | 0.15% |
| VCTXX Vanguard California Municipal Money Market Fund |
Short-term California municipal securities | $3,000 | — | 0.16% |
| VYFXX Vanguard New York Municipal Money Market Fund |
Short-term New York municipal securities | $3,000 | — | 0.16% |
Fund
VMRXX
Vanguard Cash Reserves Federal Money Market Fund
Strategy
Short-term U.S. government securities
Initial investment
$3,000
Average 7-day SEC yield as-of —
—
Expense ratio***
0.10%
Fund
VMFXX
Vanguard Federal Money Market Fund
Strategy
Short-term U.S. government securities
Initial investment
$3,000
Average 7-day SEC yield as-of —
—
Expense ratio***
0.11%
Fund
VUSXX
Vanguard Treasury Money Market Fund
Strategy
Short-term U.S. treasuries
Initial investment
$3,000
Average 7-day SEC yield as-of —
—
Expense ratio***
0.09%
Fund
VMSXX
Vanguard Municipal Money Market Fund
Strategy
Short-term tax-exempt securities
Initial investment
$3,000
Average 7-day SEC yield as-of —
—
Expense ratio***
0.15%
Fund
VCTXX
Vanguard California Municipal Money Market Fund
Strategy
Short-term California municipal securities
Initial investment
$3,000
Average 7-day SEC yield as-of —
—
Expense ratio***
0.16%
Fund
VYFXX
Vanguard New York Municipal Money Market Fund
Strategy
Short-term New York municipal securities
Initial investment
$3,000
Average 7-day SEC yield as-of —
—
Expense ratio***
0.16%
*** Expense ratio data are as of the fund's most recent prospectus.
See a full overview of our money market funds
Common questions about money market funds
We offer both taxable government and municipal (tax-exempt) money market funds. Vanguard's money market funds are offered with a stable $1 NAV (net asset value).
Each of our mutual funds has an expense ratio—a built-in cost for running the fund. The annual expense ratios for our money market funds range from 0.09%–0.16%, or $9–$16 for every $10,000 invested.
All of our money market funds have a $3,000 minimum initial investment. The Vanguard Federal Money Market Fund tied to your brokerage settlement fund, has no minimum initial investment amount.
Money market funds can be a great way to save for short-term goals or to build your emergency savings. If you have a planned expense within 1 year, you may want to consider using a money market fund.
If you're an existing Vanguard client, you don't need to open a new or separate account to invest in a money market fund. Simply begin the process online to buy a mutual fund in your account.
If you're new to Vanguard, you'll need to open an account. See the next question for more details about how to open an account.
Opening a Vanguard investing account is free, easy—and fast! Start by choosing Open an account from the menu, then choose how you'll fund your account.
Most investors fund their new accounts with money by transferring money from their bank. If you choose this option, make sure you have your bank account and routing numbers readily available.
Yes. Although money market funds seek to maintain a stable $1 share price, capital preservation is not guaranteed. Industry regulations, including additional SEC money market reforms in 2016, help ensure money market funds maintain their stable values.
On October 14, 2016, the Securities and Exchange Commission (SEC) put forward a set of rule amendments to further address any potential financial instability that could be caused by money market funds.
The amended rules created 3 categories of money market funds (retail, government, and institutional) and allow certain funds to impose liquidity fees and temporarily suspend withdrawals in certain circumstances.
*For the 10-year period ended December 31, 2022, 6 of 6 Vanguard money market funds outperformed their Lipper peer-group average. Results will vary for other time periods. Only mutual funds with a minimum 10-year history were included in the comparison. Source: Lipper, a Thomson Reuters Company. The competitive performance data shown represent past performance, which is not a guarantee of future results. View fund performance
**Vanguard average expense ratio for money market funds: 0.11%. Industry average expense ratio: 0.25%. All averages are asset-weighted. Industry averages exclude Vanguard. Sources: Vanguard and Morningstar, Inc., as of December 31, 2022.
All investing is subject to risk, including the possible loss of the money you invest.
Vanguard Municipal Money Market Fund: The Fund is only available to retail investors (natural persons). You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the Fund's liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund's sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time. Vanguard Municipal Money Market Fund is only available to retail investors (natural persons). Vanguard Municipal Money Market Fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the fund's liquidity falls below required minimums because of market conditions or other factors.
Vanguard Cash Reserves Federal Money Market Fund and Vanguard Federal Money Market Fund: You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund's sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.
For more information about Vanguard funds, visit vanguard.com to obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information about a fund are contained in the prospectus; read and consider it carefully before investing.