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What you need to know about money market reform

We've changed our money market fund lineup to comply with Securities and Exchange Commission (SEC) rules. We don't expect a significant impact on our management of these funds.
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If you're already a Vanguard client
call 800-499-9829
Monday through Friday, 8 a.m. to 8 p.m., Eastern time

What's money market reform?

Money market reform is a set of SEC rule amendments meant to address any potential financial instability that could be caused by money market funds. The amendments took effect on October 14, 2016.

Here are the key elements:

  • Establishes 3 categories of money market funds—retail, government, and institutional.
  • Restricts who can invest in retail money market funds.
  • Continues to seek a stable $1 net asset value (NAV) for retail and government funds, but requires institutional funds to have floating NAVs like other mutual funds.
  • Allows certain funds to impose liquidity fees and temporarily suspend withdrawals (known as gates) in certain circumstances.

What's behind the SEC rules

Understanding liquidity fees & gates

Money market reform and you

Investors can invest in a federal money market fund, which is a government fund, and/or a tax-exempt municipal money market fund,* which is a retail fund.

  • Our government funds (the Cash Reserves Federal Money Market Fund and the Federal Money Market Fund**) seek to maintain a stable $1 NAV. Vanguard Federal Money Market Fund is the only fund that can be used to settle brokerage trades and isn't subject to the liquidity fee or redemption gate requirements.
  • Our 3 tax-exempt retail municipal funds* (1 national and 2 state municipal money market funds) seek to maintain a stable $1 NAV.

We're here to help

Call 800-499-9829
Monday through Friday, 8 a.m. to 8 p.m., Eastern time

We're here to help

Call 800-499-9829
Monday through Friday, 8 a.m. to 8 p.m., Eastern time

*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 per share, it cannot guarantee it will do so. The fund may impose a fee upon 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.

footnote**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. 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.

All investing is subject to risk, including the possible loss of the money you invest.

While U.S. Treasury or government agency securities provide substantial protection against credit risk, they do not protect investors against price changes due to changing interest rates. Unlike stocks and bonds, U.S. Treasury bills are guaranteed as to the timely payment of principal and interest.