Schwab Value Advantage Money Fund
Fund to park money Schwab (SWVXX, SNVXX, SNOXX, SNSXX)
Buying SWVXX in IRA account and sell CSP against it
Best suggestions on where to hold cash for two weeks?
How meaningful is the "7-day yield" of a money market fund?
What does 7 day yield of 4.27% on a money market fund mean?
Money Market vs. Cash? What's the difference? Also, what are current cash (and equiv) yields on Fidelity, Vanguard, Etrade, etc?
Money Market vs. Cash? What's the difference? Also, what are current cash (and equiv) yields on Fidelity, Vanguard, Etrade, etc?
Schwab's sweep fund stinks. Help convince them to change it.
Schwab Value Advantage Money Fund SWVXX & SNAXX for cash substitute in IRA
Threw some money from Thinkorswim into Schwab Money Market, but I don't understand the dividend situation.
I literally put more money into SWVXX 2 hours ago. I saw the rate was around 4.5 but I thought that INCLUDED the expense ratio? Is that not true? Fidelity was only 4.25%. ​ These are both great rates though, shame can't lock-in for long term. Wonder if it'll hit 5% this year.
I took my money out of my ban paying me.01% interest and put it into Schwab's SWVXX paying 4.5% . Should have done it sooner.
The 4.49% you cite is described like this on that page: >The 7-Day Yield is the average income paid out over the previous seven days assuming interest income is not reinvested and it reflects the effect of all applicable waivers. Absent such waivers, the fund’s yield would have been lower. The 7-day yield without waivers was only slightly lower at 4.48%. But I'm not sure how that looks once annualized. Looking at its historical data, in the Performance section of that page: >Cumulative Returns (%) 1 Month +0.34 > >3 Month +1.05 > >YTD +0.71 > >Annualized Returns (%) > >1 Year +2.25 > >3 Year +0.83 > >5 Year +1.27 > >10 Year +0.76 > >Inception +2.35 > >Annualized returns for periods 1 yr+/cumulative returns for periods less than 1 yr. So... I don't think 4.49% is going to be a consistent return on an annual basis. The [last Treasury auction](https://www.treasurydirect.gov/auctions/announcements-data-results/) for 4 week T-bills was 4.3% (a dip from last week), but the fund will have a mix of bill durations. The SWVXX should trend up as the T-bill rates do, but they will likely stay close together. But yes, you can sell SWVXX at any time. (No need to wait for a T-bill maturity like you would if you built up a ladder at TreasuryDirect.) You'll trade convenience for a bit of yield.
So something like [Schwab SWVXX](https://www.schwabassetmanagement.com/products/swvxx) pays 4.49%. That's APY? So on a 10k deposite I receive 449 annually? Minus the 0.350% expense ratio? And I can pull out at anytime? Do I have that correct?
4.49% with SWVXX. It's a one day pause basically to get your funds but with the rate it's a great place to park.
Can you use a money market account like SWVXX in lieu of an actual savings account? How volatile are money market accounts? Can the money invested in them decrease like in stocks?
What about a Schwab “prime” MM fund like SWVXX? Is the risk you wouldn’t make as much as a 3 month CD? I’m in a no tax state (TX)
I have Schwab and TD Ameritrade accounts, and I call BS. Schwab's whole business model is paying 0% on uninvested cash, lending it out, and keeping the interest for themselves. It's called net interest income and it represents the vast majority of their revenue. As people realize they can get 4.5% in SWVXX, they're putting cash there instead. That means Schwab only gets the 0.34% expense ratio instead of well over 4.84%. So even if their deposits are going up, their revenue is plunging hard and fast. They're a safe place to deposit money, but I can't imagine investing in SCHW will be a very profitable investment in the long run. The industry is simply too competitive. Robinhood does the same thing as the last generation of discount brokerages with a much lower cost structure. Robinhood is consistently the cheapest brokerage now. You don't get much customer service, but you get $1.5 million of FDIC insurance and an annual 1% match on IRA contributions. For the next month, you get 1% on all 401k and IRA transfers too. That's double the promo that TD Ameritrade offered me when I opened an account there. I doubt HOOD would be a good investment either. This industry has no moat, as Warren Buffet would put it. The Vanguard revolution has made finance an impossible industry for money managers and brokerages. But it's amazing for regular people like us.
In my experiences, sales of SWVXX are filled between 8PM and 9PM. So not immediate, but also not more than a day.
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.
If I am saving money for expenses in the next 6 mos to a year, is [SWVXX](https://www.schwabfunds.com/products/SWVXX) liquid and safe?
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?
Can you transfer money in and out penalty free? I'm holding in Ally for the higher interest, I'd be into getting the extra % with SWVXX.
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.
I recently put my cash savings in SWVXX, currently about 4.3%.
Ok so open brokerage alongside your checking and park it in SWVXX
People are "cash sorting" and that's hurting the net interest income earned, but it won't sink the company. By the way, you can tell your rep to put you in SWVXX which is a higher yielding money fund than the default cash sweep line. You'll make decidedly more.
Schwab doesn’t do that like Fidelity specifically because of the risk involved. If for some reason Fidelity went under, all their clients cash is parked in their Money Market Fund to gain that extra interest, if everyone tried taking out at once they will not be able to. They do it to remove that risk for their clients. It takes <60 seconds to go online or call and have them put your cash in SWVXX or another money market fund, and earn 4.48% (SWVXX 7 day yield)
I have mine in Schwab's Money Market fund SWVXX, I thought that was a safe bet, now after all this bank fud, I'm even wondering about that now.
To my mind, equities are for money that you can wait 10-15 years to pull out and anything that has a shorter time horizon should be in bonds or savings. That is the value proposition of bonds after all. And when prime money markets are paying 4.5%+ and 2y treasuries are paying even more, it is best to make hay when the sun is out. My favorite currently is SWVXX. It is where I have my emergency fund alongside the funds dedicated towards buying a new car in the future and other dedicated needs.
Schwab has MMFs as well. SWVXX, SWGXX for example.
1SWVXX. Hopefully, we dont see them going below NAV of 1 unit.
This is the answer I was looking for. Wondering: Do you know if in the event of Schwab going under, the amount I have in SWVXX would end up in another firm’s hands at the same value?
What about the money market fund SWVXX at Schwab? If Schwab goes under, would that also go under with it?
Withdrawal limited to 25K though, hence my search for comprable yield with at least 50k external ACH withdrawal limit or higher. Currently considering either an ETF fund (TFLO-thanks whoever mentioned this above). Or Mutual Fund (SWVXX). Settlement + withdrawal seems to take 2-3 days. Not as liquid fast as I'd like, but willing to make some concessions for a yield at or above Wealthfront with a minimum less than 1MM.
I put it in SWVXX https://www.schwabassetmanagement.com/products/money-fund-yields
It's called SWVXX https://www.schwabassetmanagement.com/products/money-fund-yields
Isn't SNSXX more safer than SWVXX though its interest is 0.15 less, as stated above ?
> But if the holdings are something like a Schwab money market, then that would disappear as they own the fund. So SWVXX would be a bad bet?
Are you saying if I have money in the money market fund SWVXX, it is held in a trust and not at risk? Is SWVXX considered a security?
Should I be concerned for my holdings in Schwab MMMFs like SWVXX?
They both do and they don’t. Cash sitting in a brokerage account is ~0.5%. However, they also offer money market funds, such as SWVXX, with a yield above 4.5%. It’s on the onus of the investor to move it into the fund.
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.
I would use SWVXX. But state taxes may be a factor for you to consider.
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
So Schwab down 25%, or 25 billion in market cap, and we're to believe it's not something to be concerned about and it's just "clients moving cash to money markets" Watch SWVXX break the buck
Well I think the 7 day yield already accounts for the expense so it seems like a minimal concern based on what I hear from others here. I’m not sure what’s the equivalents for TD though as I don’t use that platform. Didn’t they get acquired or something with Schwab? So maybe that’s why you see SWVXX. You should probably be able to see any Schwab equivalents
By the way, it looks like I can buy SWVXX which has a 7 day yield of 4.47%. However, expense ratio of 0.34 seems high for a money market (0.19% management fee).
You’re deposits and CDs of up of $250,000 will be insured and guaranteed by the FDIC, should your bank be a member. As an above comment said, it’s highly likely that your bank and its assets, deposits probably most importantly, will be absorbed into a larger US bank and function BAU. Everything over that amount is looked at as a general creditor to the company and you’re third in line to receive payment in liquidation. Senior and secured above you I believe. What to do with cash for a little in your interim period? Maybe money market mutual fund? SWVXX is Schwabs. Execution usually on next business day. Settlement is regular was.
I use SWVXX, U.S. I-bonds, and HYSA. And take my investment dividends in cash to place in SWVXX during this recession. Great you have “a ton of money!” Good luck.
I do Schwab’s SWVXX which is at 4.48% however I’m thinking of keeping “next 2 weeks money” in there and putting the rest in t bills. Even a 1-2 month t bill can be has for 4.70% right now and on top, there’s no state income tax. It’s hard to justify money market funds for anything beyond money you need in the next few weeks
Was in SWVXX, but I'm afraid of a black swan event, so switching to VMFXX and might ladder a portion in very short term T-bills.
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 :)
Search for trading symbols which end in **2** Xs -- SWVXX, SPRXX, VUSXX etc.
You can buy tbills directly for 5%. https://home.treasury.gov/resource-center/data-chart-center/interest-rates/TextView?type=daily_treasury_yield_curve&field_tdr_date_value_month=202303 Don't know what broker you have but money market funds should yield at least 4%. VMFXX yields 4.51%. SWVXX yields 4.27%. SPRXX 4.33%. Or a floating rate ETF like USFR 4.70% or tbill ETF like SHV 4.53%.
"traveling for my job" Then your default choice is Charles Schwab. It meets 80% of what you want. Best broker for frequent business travelers. Only weaknesses are low interest savings account and no fractional shares for ETFs. The savings account can be made up with Amex savings or a money market fund (SWVXX). The Schwab ETFs have cheap per share cost. Example: SCHB is less than $50 per share. Index mutual funds will have you covered efficiently for retirement accounts (Roth or Traditional IRA). Look into SWTSX for an IRA.
Yield on SWVXX will be at 5% then 6% in no time. Ha!
I have limited experience with TD, but the best money market I could find there for $20k in cash (so there might be a better higher-minimum version) was SWVXX. Current yield is about 4.5%. Research -> Mutual Funds / Families -> Money Market Funds.
Schwab let’s you hold SWVXX or SNAXX and sell CSP against, do this all the time
Schwab's $0 minimum prime money market mutual fund SWVXX has a 7-day yield 4.48% as-of 3/3. You could just put your money in there until you have $1000 and then look at treasury yields that mature in your timeframe.
Mutual Fund. I sweep my cash into SWVXX, currently paying about 4.5%.
RemindMe! 6 months "I'm betting VOO's returns are worse than SWVXX, ie: currently 4.48% MMF"
The 7-day yield on SWVXX is at 4.48% right now. (Not sure which one might be at 4.58%) https://www.schwabassetmanagement.com/products/swvxx
Interst rates can be even higher with Feds keeping raising. If you are on the fence try SWVXX.
SWVXX was at 4.4% last I checked.
yeah I really like SWVXX personally and the only risk is issuer risk and I'm not at all worried about schwab defaulting. Most of these funds trade the overnight rate so they are very closely tied to the fed funds rate, with a small amount of very short duration bonds thrown in when they are unable to find overnight borrowers.
This is what I’m using, via SWVXX. If you’re holding cash waiting for an entry point, then it makes sense due to the floating rate and lack of risk to capital. If you are investing specifically for yield or want fixed income exposure for your portfolio, there are better options.
Not related to your question, but can I ask why you are removing your funds from SWVXX and going to a bond ladder? Is the difference that much to make it worth the effort? I only ask because I have a good amount of cash in SWVXX and getting 4.27% on it...how much better can you do by moving it to a bond ladder.
I think a lot of people didn't realize what you are asking about. So many of the comments don't apply. SWVXX is a money market fund. Money market funds generally accrue and compound interest on a daily basis. But distribute it monthly. So - if you redeem from the money market fund, you will receive whatever interest has been accrued for the previous month to the date of redemption. If you are unsure - please call Schwab and ask them.
You have to hold the security till *Record Date* on prospectus to qualify for next dividend or interest distribution cycle. For $SWVXX, for 02/15 distribution, record date was 01/18, which mean you can sell after 01/18.
It's calculated daily, paid monthly, "through the 15th **ON the 16th**". I have $10K in SWVXX and got $5 in interest on 02/16. I wouldn't base any other financial decisions on that $5 -- but of course, if you have 6 digits in that fund then you will think differently! If you want to collect it, you should wait two more weeks from today, unless you can get someone to verify that Schwab will in fact pay interest on a position you no longer hold.
Though this is the best option if you want to grab a slightly larger yield, I’m really just treating SWVXX as a cash equivalent until I decide what I want to do it for. I may need it for a house in the somewhat near future and I really don’t want to bother using treasureydirect. A one day lag is also not a deal breaker.
If you have this 6k now I’d put it in SWVXX today or tomorrow ASAP then work out the specific plan later. Maybe take some out of there every month or so and invest elsewhere.
I think it depends on if you think bonds are going to go up or down in the future. The rate at which the the Fed are raising rates has slowed down to 0.25 BPS, so they’ve definitely slowed down compared to last year, however the latest CPI report has come in a bit hot, so the market is betting at least a few more 0.25 rate increases. If I were you, and you were serious about long term ETF bond holding, I’d wait another two months and see if rates are going to continue to go up. If CPI decreases to a point where the Fed will stop hiking interests rates, I think that’s a good time to buy some longer term bonds. If the Fed continues to be hawkish like they are now, it’s best to wait because yields on long term bonds will probably continue to decrease. I’m personally holding some extra money in a money market fund called SWVXX. My personal opinion: I think we have some more downside in equities, and bonds are going to still go down, albeit less so than in 2022.
Money market funds end in double XX. Plus LMMDX holds muni's so you have benefit and account for its tax advantages to be competitive with taxable money market funds. I use TDA. Their highest non-institutional MMF offering is SWVXX prime at 4.27% or SNOXX treasury at 4.03%.
High yield etf SWVXX, VGSH. VMSXX etc
As if Satya is any better. The moment I hear Brad Smith is promoted to CEO, I will sell all of my SWVXX and buy MSFT.
This is good advice. SWVXX from Schwab is similar. Don’t let it sit in cash in a bank while you figure things out. These are essentially zero risk investments (always trades for $1).
SWVXX you get interest monthly w/d anytime as needed. More liquid.
So I was looking into various money market funds to park money into and noticed that there will be various 7 day yields and expense ratios on them. Additionally, depending on which brokerage I used, I would be limited to the brokerage's own funds instead of being able to choose. For example, Schwab only has access to stuff like SWVXX but not Vanguard ones like VUSXX that have slightly better yields. There wasn't one platform as well to compare all the various yields. Fidelity sort of has that with their research tool but it's only for Fidelity MMFs. I must be missing something here cause it seems pretty stupid that if I can't easily compare various yields and am trapped to one platform's mmfs. Is there an easier way to screen and compare yields? Is there a brokerage that allows the widest variety of MMFS on their platform? Thanks
>because it took the average yield of the last 12 months when interest rates were lower. I agree. They most likely took the distribution yield which as the name implies is the 12 month distribution yields annualized. >Typically I use Yahoo Finance but did not in this case because I could not find SWVXX. So I figured I would compare the 2 using the same data source. Do you recommend another option? Yahoo is amazing for individual tickers. If however you're looking at funds/etfs, you should look up the fun directly from their website. There are prospectus, reports, and the most accurate metrics. The metric you're looking for in your case would be "30 day SEC yield" which is the yield in the last 30 days, annualized. You should understand where SGOV derives their yield from and how that differs from SWVXX.
Hello. I got the numbers from marketwatch. I hyperlinked them in my comment above but here are the sources: SGOV - [https://www.marketwatch.com/investing/fund/sgov?mod=search\_symbol](https://www.marketwatch.com/investing/fund/sgov?mod=search_symbol) SWVXX - [https://www.marketwatch.com/investing/fund/swvxx](https://www.marketwatch.com/investing/fund/swvxx) I think maybe the annual yields were displayed lower because it took the average yield of the last 12 months when interest rates were lower. Typically I use Yahoo Finance but did not in this case because I could not find SWVXX. So I figured I would compare the 2 using the same data source. Do you recommend another option? Regardless, thank you for the corrections. I appreciate it.
Where are you getting these numbers from? SGOV as an ER of 0.05 and yield of 4.31% SWVXX has an ER of 0.34% and yield of 4.47% The answer is still the same: SGOV but I just want to make sure you're able to find information accurately Sources: https://www.ishares.com/us/products/314116/ishares-0-3-month-treasury-bond-etf https://www.schwabassetmanagement.com/products/swvxx The yields you are giving are glaringly inaccurate as the US1Y is at 5.03%
Hello, I appreciate the comment. I was not aware of SWVXX. If you could help me out here a little bit with some of these numbers. When I was looking at marketwatch, [SWVXX](https://www.marketwatch.com/investing/fund/swvxx) has an annual yield of 1.89% and an expense ratio of 0.11%. While [SGOV](https://www.marketwatch.com/investing/fund/sgov?mod=search_symbol) has an annual yield of 1.84% and an expense ratio of 0.03%. Just from glancing at these numbers, wouldn't SGOV be the better option when accounting for expense ratios? If I'm missing something please let me know.
I feel this. I'm interested in getting into t-bills/notes but it makes no practical sense for the amount of money I have when I could just stay in money market. And completely eliminate the downside risk of fixed income when rates increase more than expected. I keep a couple months of expenses in savings at 3.4%, the rest in SWVXX at 4.5% which is close enough for me. I might buy some 1yr or 2yr when rate hikes stop to lock in the yield for a while.
I was recommending a Money Market fund because Vanguard products have fees in TD/Schwab brokerage accounts, but the Schwab equivalent product is free. BIL looks like a pretty different product, ETF vs mutual fund, though it looks like they have similar returns. Looking at their performance, though, BIL goes up and down on a regular basis with periods of negative return, so you'd have to time time your entry/exit for gains. As a cash equivalent, I'd say the money market fund is better because it doesn't experience nominal loss. The shares maintain a constant value of $1, and appreciation comes as a dividend. Yes there is a tiny amount of risk, but SWVXX doesn't have any periods of negative return. And as a mutual fund, you can invest dollar amounts instead of having to buy whole shares.
I mean you can get 4.48% holding cash in a MMF. That's essentially a risk free return. What companies are you holding that offer dividends better than 4.5%? It's actually been great to hold cash for the past 6-12 months. I'm about 60% cash right now in SWVXX, and it's by far outpacing any of my stock holdings or etf's. If you truly believe we are in or entering a recession, than holding cash isn't the worst...it's not like you are getting 0% like in the past 10 years.
That has a 1 million dollar minimum investment. SWVXX might be the find you are thinking of (unless OP has 1 million dollar expenses coming up)
Mine pays 4.5% Schwab Value Advantage Money Fund® – Investor Shares (SWVXX)
For those in TD/Schwab, SWVXX is 4.27% right now.
Read my post. If your bracket is 32% its 5.3%. If your bracket is 24%, its 4.73%. Both higher than SWVXX.
Money Markets like SWVXX or SPRXX now yielding 4%+
Thanks! Yeah, it's kind of frustrating that Schwab doesn't do an automatic bank sweep into SWVXX.
With Schwab, you have to manually buy SWVXX, I believe. Would be nice if it were done automatically, though I guess this is part of their business model.
anyone know what exactly SWVXX invests in and what is the return?
Hi all, are there any tax implications to repeatedly purchasing/selling shares of a money market fund (such as SWVXX) with the cash allocation in a taxable brokerage account? I know that the MMF pays out a monthly dividend, which is of course taxed, but am I correct in my understanding that there shouldn't be any capital gains because the NAV is kept stable at $1? If this is true, are there any downsides to holding the (temporary) cash allocation in a MMF and selling as needed when buying another asset? I believe this is done automatically in Fidelity accounts (with SPRXX?), but has to be done manually in Schwab accounts. Thanks for the help!