— SEC yield
Average 7-day SEC yield as of —
Vanguard Federal Money Market Fund (VMFXX)
The performance data shown represents past performance, which is not a guarantee of future results. Investment returns will fluctuate. Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our website at www.vanguard.com/performance. The yield quotation more closely reflects the current earnings of the fund than the total return quotation.
What's a money market fund?
A money market fund is a type of fixed income mutual fund that invests only in highly liquid, short-term debt. These funds offer a low level of risk because they invest in low-risk investments like government-backed securities. You can use a money market fund to save for short-term goals such as a wedding, a down payment on a home, or an unexpected life event.
Learn more about money market funds
Not sure what a mutual fund is? Learn about mutual funds
What are the benefits of money market funds?
How much does it cost to invest in Vanguard money market funds?
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 0.07%–0.12%, or $7–$12 for every $10,000 invested.
Who should consider money market funds?
Anyone saving for short-term goals or building their emergency savings should consider investing in a money market fund.
- How much does it cost to invest in Vanguard money market funds?
- Who should consider money market funds?
- How much does it cost to invest in Vanguard money market funds?
- Who should consider money market funds?
Compare our money market funds
It's important to know what it costs to invest because costs impact your savings.
| Fund | Strategy | Initial investment | Average 7-day SEC yield as of — The SEC yield for a money market fund is calculated by annualizing its daily income distributions for the previous 7 days. |
Expense ratio1Expense ratios are fees charged to cover funds' operating costs. They're taken from dividends and capital gains distributions, not the principal. |
| 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 | $3,0002 | — | 0.11% |
| VUSXX Vanguard Treasury Money Market Fund |
Short-term U.S. Treasuries | $3,000 | — | 0.07% |
| VMSXX Vanguard Municipal Money Market Fund |
Short-term tax-exempt securities | $3,000 | — | 0.11% |
| VCTXX Vanguard California Municipal Money Market Fund |
Short-term California municipal securities | $3,000 | — | 0.12% |
| VYFXX Vanguard New York Municipal Money Market Fund |
Short-term New York municipal securities | $3,000 | — | 0.11% |
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**Expense ratios are fees charged to cover funds' operating costs. They're taken from dividends and capital gains distributions, not the principal.
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%
1Expense ratio data are as of the fund's most recent prospectus.
2Initial investment for VMFXX is $0 if this fund is used as the Vanguard Brokerage Account settlement fund.
Explore beyond money market funds
A strong track record
Our low-cost funds are crafted to help you reach your goals and achieve investment success. Over the last 10 years, we've had a history of strong performance.
The average expense ratio of Vanguard's money market funds is
54%
less than the industry average.4
Note that these figures don't represent the return on any particular investment and the rate of return is not guaranteed.
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Are you getting the best possible returns on your short-term savings?
Are you getting the best possible returns on your short-term savings?
Frequently asked questions
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).
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.
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.
We have 6 Vanguard money market funds.
You can buy a Vanguard money market fund in your account through the Buy & sell feature on your secure account dashboard.
Money market funds are lower-risk mutual funds while a money market account is an account held at or in partnership with a bank and usually are FDIC insured.5
A repurchase agreement, also known as "repo," is an agreement in which a money market fund provides cash to a counterparty such as the New York Fed and receives U.S. government securities as collateral backing the transaction. The counterparty agrees to buy back the collateral at a specified time and price, implying a rate of interest for the money market fund.
The NAV is the price per share at which you buy or sell a money market mutual fund. It's calculated at the end of the trading day. Money market funds try to maintain low-risk by keeping their NAV at a stable $1.00 per share. Vanguard's money market funds offered to clients may keep their NAV at a stable $1.00, subject to SEC requirements.
Ready to invest in a money market fund?
3For the 10-year period ended December 31, 2024, 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: LSEG Lipper. The competitive performance data shown represent past performance, which is not a guarantee of future results. View fund performance
4Vanguard average expense ratio for money market funds: 0.11%. Industry average expense ratio: 0.24%. All averages are asset-weighted. Industry averages exclude Vanguard. Sources: Vanguard and Morningstar, Inc., as of December 31, 2024.
5Bank accounts can offer more liquidity, ATM access, and overdraft protection. You should consider all material differences before choosing to invest.
Source for 10x yield comparison to bank savings accounts: FDIC National Rates and Rate Caps. For current Vanguard money market fund yields, see above.
All investing is subject to risk, including the possible loss of the money you invest.
Vanguard Municipal Money Market 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 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 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 a bank account and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund's sponsor is not required to reimburse the Fund for losses, and you should not expect that the sponsor will provide financial support to the Fund at any time, including during periods of market stress.
For more information about Vanguard mutual funds or Vanguard ETFs, obtain a mutual fund or an ETF prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information are contained in the prospectus; read and consider it carefully before investing.