SNSXX
The Charles Schwab Family of Funds - Schwab U.S. Treasury Money Fund
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Fund to park money Schwab (SWVXX, SNVXX, SNOXX, SNSXX)
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SNVXX holds commercial bank repos, agency debt (mortgage securities), Fed repos, affordable housing bonds, in addition to treasuries. If you click on holdings you can see the list. SNOXX holds commercial bank repos, Fed repos, and treasuries. These funds are going to generate a higher yield than just owning treasuries because by definition any instrument that is not a treasury will have to pay a premium to treasuries which are risk free. Are these instruments risk free? No, not 100% risk free like treasuries, they have some small amount of credit risk, meaning risk of default. If the paper they bought was issued by SVB or Signature or FRC for example, well that paper is now at risk of default. If you want a 100% risk free fund then buy SNSXX. If you want a slightly higher yield but don't mind taking some small amount of credit risk, then the other funds might be an option. In reality, if some of that paper defaults, your fund will probably not decrease in value, just the overall yield will be dragged down by the defaulted bonds. The other risk is that the fund puts up gatekeeping to prevent liquidity issues, so the fund may be restricted in terms of withdrawals. if there are widespread problems with defaults. This is a low probability scenario but possible.
Thanks! I have another question if you don’t mind. I see there are also SNVXX and SNOXX. One is a government money market fund, the other an obligations treasury fund. They both have higher yields than SNSXX. Are they just as risk free? I’m not familiar with the differences. Here is the list of all the money market funds. https://www.schwabassetmanagement.com/products/money-fund-yields
>I owned SWTSX for a while (covers entire US Stock market). If I sold that then bought VOO the next day, does that count as a stock that is "significantly similar"? I'm trying to take advantage of tax loss harvesting. No - it is not considered "substantially identical" for the purposes of the wash sale rule. SWTSX is a total market fund. VOO is a large cap fund based on S&P 500 index. ​ >I recently bought SNSXX as a place to park some cash. The 7 day yield is about 4.26%. How long does it take to show those gains in my portfolio summary? How is that paid out? See the wiki faq here - [https://www.reddit.com/r/investing/wiki/faq/#wiki\_what\_is\_a\_money\_market\_fund\_and\_how\_safe\_are\_they.3F](https://www.reddit.com/r/investing/wiki/faq/#wiki_what_is_a_money_market_fund_and_how_safe_are_they.3F) Money market funds normally accrue and compound interest daily and distribute once per month. Schwab money market funds distribute in the middle of the month around the 15th except for in December when it distributes at the end of the year like most money market funds. Your post has been removed because it is a common beginner topic. We get too many of these topics every day and to prevent them from swamping the front page, we are removing main threads of this kind. You are welcome to repost your question in the [daily discussion thread](https://www.reddit.com/r/investing/about/sticky?num=1). If you have any issue with this removal, please contact the moderators via modmail. Thank you.
MMFs has T+1 settlement and stocks have T+2. This means, if you have $10K in SNSXX/SWVXX, you can buy 100 shares of AMZN on Monday and sell $10K worth of SNSXX/SWVXX same day. On Tuesday, $10K will be available in your "cash" account (and $0 in SNSXX/SWVXX). On Wednesday, Schwab will take the $10K to pay for your AMZN purchase on Monday (yes, this means you can wait until Tuesday to sell your MMF--penny-pinching that one extra day of sweet sweet 4.49% INT) See this [screen shot and the beautiful SCHW 30P sold](https://www.reddit.com/r/thetagang/comments/11j7z9c/green_january_vs_red_february_4848_vs_5454/)
[SNSXX and SWVXX are money market funds](https://www.schwabassetmanagement.com/products/money-fund-yields) that move money around within one business day.
Fidelity & Vanguard keep your uninvested cash in money market funds. With Schwab you can just buy the fund (like SNSXX) but maybe they don't do it for you automatically
I didn't compare the two, but looking at them now the performance/yield is nearly identical. SWVXX is very slightly higher. Reading the descriptions, it looks like SNSXX invests almost entirely in Treasuries, while SWVXX invests in other short term obligations.
Why SWVXX over SNSXX? Is there a specific advantage?
Why SWVXX over SNSXX?
Wouldn't SNSXX be super safe too since they only buy treasuries?
So looking at SNSXX, it shows a 7-day rolling average of 4.33% which is higher than Ally. The expense ratio is 0.35%, so I assume that means that drops the rolling average to 3.98%? Ok, also since it is all treasuries, it is exempt from state tax correct? So for me, that is way more valuable than keeping it at Ally, correct?
I am currently in SNSXX, but it is not 100% risk free as some would have you believe. Fitch recently released an interesting take on the risk with treasury MMFs in the event of a debt ceiling failure: https://www.fitchratings.com/research/fund-asset-managers/us-debt-ceiling-uncertainty-risk-for-treasury-money-market-funds-22-02-2023
I have cash in both SWVXX and SNSXX and never had any issues with either. I find them very useful for parking cash while looking for real estate.
Short answer is SNSXX holds 100% US treasuries and is 100% risk free with a 7 day yield of 4.3% although treasury yields did plummet this week and this may decrease somewhat as they roll. The other funds provide incrementally higher yields but still below 5% by buying other money market instruments such as agencies and commercial paper that come with additional risks, and also have fine print that allows them to gatekeep and restrict liquidity in times of turmoil such as March 2020.
There is an easy fix here my friend. SNSXX gives you no CD exposure for a 0.15% lower yield. Some peace of mind associated with that.
Thank you for the explanation. I will look into SNSXX.
That money market fund is not limited to treasuries. It earns extra yield by buying higher yielding paper. Current holdings included agency debt (asset backed securities), bank CDs, commercial paper, and repos, as well as some treasuries. The risk in this fund is not Schwab going bankrupt. In that event, your account is covered by SIPC up to $500,000 regardless of stocks, bonds, mutual funds, etc., (your futures account if you trade futures is separate and not covered). The risk in this fund is the counterparty risk to the issuers of the paper, like Bank of Nova Scotia CD for example. If they default, then the fund could possible experience a loss on that investment. Don't forget, in March 2020 the Fed had to backstop and the entire commercial paper sector due to unprecedented volatility. That could happen again this summer theoretically if there is a debt ceiling fight. If you want a 100% risk free money market fund, just by SNSXX which holds only treasuries and yields 4.3 % currently I believe.
Thank you. SNSXX then. Any possible downsides? Hope what SVB customers had to go through is not the case here.
Isn't SNSXX more safer than SWVXX though its interest is 0.15 less, as stated above ?
SWVXX is a Prime fund that holds commercial paper and bank CDs - not worth the 0.15% higher yield to me. SNOXX and SNSXX hold Treasury bonds and Treasury obligations - much safer.
Hi, I have my kid's college fee money (\~50K$) is in Charles Schwab current account. I need it in next 9 to 12 months. I am evaluating the options to park it in money market account or others. Any suggestions please? MM options available are: SWVXX, SNVXX, SNOXX and SNSXX. thank you
Schwab U.S. Treasury Money Fund - Investor Shares Type: Mutual Funds Symbol: SNSXX Net Expense Ratio: 0.34% 7-Day Yield (with waivers) As of 03/09/2023- 4.30% 7-Day Yield (without waivers) As of 03/09/2023- 4.29% Looks secure. The expense ratio seems to be higher.
I think it is exempt but FYI should appear on your 1099-INT, line 3 on your taxes for FY2022. Not an expert here either but I'd expect the payouts to appear there. Agreed that many investors might be okay with commercial paper for that extra bit of yield; hence the greater AUM. Either way, I went ahead and put a buy in for SNSXX with some auctioned t-bills. I think this meets my personal needs. Appreciate all the help.
Yes you should be getting a dividend on the 15th no matter how many days you hold. I did review the holdings of the different Schwab funds and determined SNSXX offers the best risk return. They are just in short term treasuries, nothing else. Some of the other funds buy repos, commercial paper, asset backed securities, agency debt etc. The slightly extra yield didn't seem to be worth it just for a short term cash sweep yield enhancement. And some of these other funds if you read the fine print can gatekeep your funds if market conditions warrant such as happened in 2020. As for SWVXX if you look at the top ten holdings it is not US government treasuries it is commercial paper which is short term debt issued by corporations. The commercial paper market froze up and was bailed out in 2020. It is a small risk but for the extra 10 or 20 basis points I just opt to be 100% in US treasuries.
Thanks! Some follow-up questions. Seemingly similar to your approach- I just want to go after US Treasuries. I see several different funds that list treasuries in their name but clearly have different tickers. (SNOXX, SNSXX, SNVXX, SWVXX) They have similar 7-day yield but I don't quite know the difference between each fund. Wondering if you've already done the research there? I'm pulling up each prospectus now but see that SWVXX has the most AUM by a long-shot. So clearly there is some preference there by most investors. I see that the dividends are also paid out the 15th for everything- but if I only hold a few days, do I get any payout? For a MM fund, is similar as if every day was an ex-div day for a traditional stock holding? I'm unsure of how this thing works :)
I use TD also. I am currently holding shares of SNSXX which has a 7 day yield of 4.3% I believe, that is how they quote the latest yields. If you place the order before 3:00PM it shows up in your account the following morning. There are higher yielding funds, these are all Schwab funds. But the tradeoffs didn't seem worth it to me, namely deviating from investing in US treasuries and venturing into commercial paper, repos, asset backed securites, etc. and also possible limited liquidity in the event of some funny business this summer with the debt default. This happened in 2020 during the covid crash, the money markets had to be bailed out and some of the higher yielding funds had gatekeeping etc.
TDA is owned by Schwab, so you want SNSXX
Many banks do not compete on interest rates but other services. If you want a competitive rate you most likely should simply invest in a money market mutual fund like SNSXX what is a Schwab fund that only invests in government guaranteed assets.
Is there a fund that's 100% federal t-bills though? It seems that the nromal ones SNSXX, VMFXX, etc aren't fully federal so it could get a little annoying to deal with paying taxes.
I bookmark the internet pages for my funds. e.g.[SNSXX](https://www.schwabassetmanagement.com/products/snsxx).
SNSXX (Schwab), PJTXX (LPL)
Depends on the fund. [SWVXX](https://www.schwabassetmanagement.com/products/swvxx) has commercial paper. [SNSXX](https://www.schwabassetmanagement.com/products/snsxx) is 100% US Treasury bills.
Most brokers also offer Treasury funds and Municipal funds that should offer the same tax benefits for taxes. The negative is lower interest I think SNSXX is around 3.9% compared to Tbills which are higher.
SNSXX is what I am actively buying.
I will be a bit nitpicky and state to factually correct you would need vusxx, fdlxx, and snsxx to be the most similar to 4 week tbills due to the ones you listed above have either repos or some government backed morgatges. According to vanguard VUSXX is 100% state tax exempt, FDLXX is 96% and SNSXX is 84%. All the other ones with repos or GMMA are much lower maybe 65 or lower. I also think at the major brokers to buy tbills at auction or secondary market it shouldn't cost anything , at least for me at fidelity it didn't cost me anything other than reaching min of 1000 per tbill.
I put most of my spare change into a US treasury-backed money market account ($SNSXX at Schwab). I'm not sure what to buy.
Good point. I use SNSXX at Schwab. Just dump all my excess cash in there and sell as needed. Make sure to read the fine print because some will use repurchase agreements to supplement treasuries. Not sure if it matters but I wanted only treasuries in my MMF.
SGOV and SNSXX are pretty similar (SGOV's expense ratio is much lower). Both would serve well if you're seeking zero risk.