VUSXX
Vanguard Treasury Money Market Fund
Mentions (24Hr)
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Reddit Posts
Offsetting Previous Losses While Continuing to Invest for the Future
Vanguard Idle Cash/“Settlement Fund” Options
Vanguard Idle Cash/“Settlement Fund” Options
Idle cash sitting in MooMoo account - possible to squeeze some yield?
T bills vs Gvt obligations ( short term risk mgmt ) - what's your choice?
How will floating-rate treasury funds (USFR, TFLO) fare when interest rates start to fall?
VMSXX has now temporarily surpassed all MMFs for higher federal tax brackets.
Which is more risk free: cash or money market funds that invest in government treasuries?
Which yield definition should you use when comparing floating rate treasury funds?
Are money market funds like VUSXX considered a security? Do you still own the security if the firm fails?
Vanguard Treasury Money Market Fund good idea? Won't I lose money?
Higher federal tax bracket? Tomorrow is probably the day to switch from VUSXX to VMSXX
17 Week T-Bills is now returning the highest yield. 4 weeks tumble which may impact VUSXX
Table of Money Market Funds/ETF's or Ultra Short Term Funds/ETF's available on Merrill Edge
Chasing the yield: Time to switch back from VMSXX (muni) to VUSXX (treasury)
How Does VUSXX (Treasury Money Market Fund) Work?
Vanguard's e-mail contact to ask a KID's translation
Have you found any ~1 year term investment products paying better than savings accounts right now?
Mentions
I personally strive to keep around 5% of my portfolio in cash or cash like holdings, for buying stocks that go below my target market value. I actually just put in an order today to move more of it from sweeps to VUSXX for the better rate.
VUSXX currently yields 3.93% with a .07 expense ratio
if you’re not sure when you’ll invest, just mix it up: some in VUSXX, some in a high-yield account. the rates are almost neck and neck lately. I found my HYSA through BankTruth, they track which banks are actually keeping their APY stable instead of dropping it after a month.
You're over thinking it. A Treasury ETF like VBIL, SGOV, USFR or Treasury Money Market like VUSXX are functionally equivalent. Just pick whatever is most convenient for you.
I might be corrected on this, but they are the same. SGOV is a treasury/bond ETF while VUSXX is a money market fund. Different vehicles with the same destination. SGOV price rises over a month and resets when dividends are paid. MMF prices are fixed to $1 per share with dividends paid in accordance with current interest rates (minus their expense ratios)
SGOV vs VUSXX? The Vanguard offering keeps a stable $1 price.
VUSXX and SGOV both pay around 4.5% right now.
You can buy Vanguard VUSXX and VMFXX money market funds at eTrade. Would those be marginable? As MMFs with a constant share value of $1 they would also avoid tax filing cap gain/loss reporting. They accrue dividend daily for the amount held on each day - you don't lose yield if you don't hold until the dividend payment. VUSXX dividends are all or mostly all state tax exempt. VMFXX dividends are typically partially state tax exempt.
Pokémon cards!... no wait, that was a few decades ago. You don't say whether this is your life's savings, how old to you, and what your needs might be. Selling will likely cause capital gains, and you need to understand your tax position/impacts. Not knowing you or your situation here are some general thoughts: Have high interest debt, consider paying it off, may be your best ROI. If you don't need the money in the next 5 years or so, invest away. If you are looking to buy a house with it in the next year, put it in a CD or VUSXX or similar. Understand your risk tolerance, goals, and options. There are tons of online tools to assist. Consider moving some to a Roth IRA every year if you aren't already funding on and have income. Be careful with what you "learn", this is like an unmoderated FB group. YMMV.
I use VUSXX to get rid of state income tax on my savings. It’s still almost as liquid as cash.
> I'd like to make 5% or more while remaining completely liquid I'd like 100%. But what I like and what's reality are different things. You can expect around 4%. I have a few hundred thousand spread amongst SWVXX, VMFXX, VUSXX and SGOV. They are all pretty much the same but why have everything in the same basket.
Yes. You can short sell an ETF like VOO, buy an inverse ETF, or use an index futures contract. Short selling is very risky. I've been in the market for many years, and until Trump came into office, I just rode the fluctuations out. This time I sold most of my positions and move my money into treasury bills, VUSXX. I still have about a million dollars in an IRA, but I can ride it out plus I don't want the tax consequences of selling.
Why? The highest cd's i'm seeing are 4.1%, which is about the same as VUSXX or most hysa's.
I put my money where Warren puts his: VUSXX.
For example if you thing Google, FedEx, and SAP are going to do well, you can buy shares of those but I was advised not to spend more than 10% of my investment money on individual companies. So for $100k investment money, max spend is $10,000 total on those. The rest of the money I invest in things like VOO (index fund that tracks the S&P 500) and VTI (index fund that tracks the entire stock market). These funds include most of the major companies so you get a good diversity. I also use the rest of that money to put in treasury funds like SGOV or VUSXX. These funds invest in bonds, and their return rates are similar to the current interest rate set by the Fed. Yea, that means a very conservative return, but I go by my risk tolerance because I learned last April I don’t like TOO much volatility lol. Those funds have far less volatility than stocks and index tracking funds.
SPAXX is short term government bonds. VUSXX has a very slightly higher yield if that little difference matters. The other choices are CDs but that aren't much better. Here are your choices today. [https://imgur.com/a/pGAiQDa](https://imgur.com/a/pGAiQDa)
I keep cash in VUSXX [https://investor.vanguard.com/investment-products/mutual-funds/profile/vusxx](https://investor.vanguard.com/investment-products/mutual-funds/profile/vusxx)
Smart move selling underperformers. PYPL and TWLO have struggled with growth and market challenges. Block (Square) has more potential with fintech diversification. Moving to a money market fund like VUSXX is a safe temporary strategy while reassessing your portfolio. Consider more stable growth stocks or broad market ETFs.
SGOV, VUSXX, SWPXX, or other money market funds
At 22 with no debt, you’re already in a solid spot. Stick with broad ETFs like VOO and keep stacking cash in VUSXX - slow compounding beats chasing gimmicky 'high income' funds that usually bleed on the back end. Options can wait till you’ve got more capital and screen time under your belt.
When I said HYSA I was actually lying, I have it in a Money Mark Fund called VUSXX
Sure, but that's not really an answer. Be as realistic as possible. What is these likelyhood you will need this money for bills? If you think there is a likelihood you will need to use or for bills, just put it in a money market fund like VUSXX or SWPXX
Fund 7-Day SEC Yield Expense Ratio Tax Exemption (State) VMFXX 4.21% 0.11% Partial SPAXX 5.20% 0.42% Partial VUSXX 4.20% 0.07% Full FDLXX 5.00% 0.42% Partial
We use VUSXX at vanguard. We keep very little in a checking account, just what's needed to pay bills coming up etc. If we need more money we transfer from VUSXX to checking etc. Might as well maximize the amount of interest we can get. With the added benefit of most of it being exempt from state income tax
SGOV primarily holds Treasury bonds. The fund receives or accrues interest from the bonds. This causes the net asset value share price to increase daily until the ex-dividend date. If you own shares on the day before the ex-div date you get the entire dividend for the preceding month - even if you only owned it on just the one day before the ex-div date. Since the dividend is derived from Treasury bond interest it is exempt from state income tax. To claim the state tax exemption you have to get the year end statement from the fund that shows the percent of dividends from (Treasury bonds) federal obligations. You will have to do a manual calculation of state tax exempt dividends and make an extra entry in tax software to reduce dividend income reported to the state. This info is not on broker's 1099. Here's how to do it: [https://thefinancebuff.com/state-tax-exempt-treasury-fund-etf.html](https://thefinancebuff.com/state-tax-exempt-treasury-fund-etf.html) If you sell shares In between the ex-div date and two days before next ex-div date you get capital gain from the share price increase and not the dividend on the sold shares. Cap gains are not state tax exempt. They are taxed the same as ordinary income. SGOV current yield is \~4.2%, not 5%. FDIC does not cover SGOV or any other stock or mutual fund. SGOV holds Treasury bonds. That is just as safe, or safer, than FDIC. You might be more comfortable with a Treasury only money market fund. The yield is about the same as short term bond funds, like SGOV and VBIL. MMFs accrue dividend for every day you own them. You get the dividend you accrue even if you don't own them on the day before the ex-div date. MMFs share price is held at exactly $1 all of the time so there are no cap gains or losses from buying or selling shares. You generally need to buy MMFs only at the broker that sponsors them. There may be some exceptions. Ally Invest and eTrade may allow buying Vanguard's VUSXX MMF.
What's the rate? VUSXX is currently rated at 4.5%. SGOV is basically the same.
Sorry I left that out. I posted on the Bogglehead site and thought they might boot my post. They may have. It's Vanguard personal advisor. 0.3%, just the advisor service. Because I would have over $500,000 I would get a dedicated advisor. He would set the investment, review the account every 90 days and talk on the phone once a year unless I had other questions. With the $24,000 in retirement accounts and the property sale there's 1.2 million sitting in Vanguard Cash Plus and VUSXX. There's still some in Bank of America. The only tax thing he mentioned was tax loss harvesting. No accounting or estate management.
Sorry, I was trying to not be too wordy or get my post booted off. We sold some commercial property and a cell tower easement lease. We're not usually people who have too much money. We were collecting rent from a tenant who purchased the property and by selling the tower lease we got 23 years future tower rent. With my retirement accounts and the property sale there's 1.2 million sitting in Vanguard. Only $240,000 is in a personal advisor account, those are my personal 401K and a Roth. They allocated how it's invested, I never call for advice. The other money is in Vanguards Cash Plus and VUSXX money market. I had to get the money out of Bank of America. I pay 0.3% for personal advisor and if over $500,000 I get a dedicated personal advisor. I still owe long term capital gains and we will have a big year of Medicare IRMMA coming up in 2 years, so a portion of the money must be somewhere safe. I have done a lot of research but clearly no expert. I'm having second thoughts about personal advisor for all this money as they only monitor the account every 90 days and I was told otherwise we would have a call once a year. If I did have questions I could speak to the same advisor when I call. He indicated he could help with tax loss harvesting. The 0.03% adds up, he quoted me about $4000 a year in personal advisor fees. I was thinking about what am I willing to risk and put it where I see money is being made? I don't think I worded that right. I've always been a stay the course person, but we are in retirement with a disabled son and I don't want to make a stupid mistake. That mistake maybe paying someone $4000 a year. Thanks if you made it this far.
I'd drop the SCHD and put these cash part in VUSXX or SGOV instead of a hysa/cd.
Keeping that $115k in equities like VDADX or VTSAX exposes you to market swings that could cut your down payment right when you need it. Moving the money into something like VUSXX or VMFXX is a much safer play, since those money market funds will preserve your capital and give you a modest yield while keeping it liquid. Your Roth IRA can stay invested in equities, since that’s for the long term and not tied to your house purchase. The key is to separate short-term money you’ll need soon from long-term money you won’t touch for decades. For a house in 2–3 years, safety beats chasing returns.
Follow this general guide: [https://www.bogleheads.org/wiki/Prioritizing\_investments](https://www.bogleheads.org/wiki/Prioritizing_investments) Chase is 'probably' ok if you have the self-directed brokerage account and can resist their likely pitch to pay them to manage your money. Otherwise, the big three are good: Vanguard, Fidelity, or Schwab. Put funds that have to be safe and accessible in a few days in money market funds like VMFXX or if you are in a state with high taxes consider VUSXX for it's state tax exemption (if you report the dividends correctly). For long term investment, see the links on the sidebar over at r/Bogleheads for the reasons to use a low fee index fund that owns the 'whole market'. That would be VT or the equivalent 60/40 mix of VTI (US) and VXUS (international). These own 'everything' so other companies/sectors are redundant.
I have vanguard but have not put any money in their cash plus acct, I keep all cash in their money market specifically VUSXX, you can also just put the cash in their brokerage acct settlement fund which is VMFXX. They both have a 7-day SEC yield of about 4.2% while the cash plus earns about 3.65%. Money markets are not FDIC insured but they are as safe as can be w/o FDIC especially VUSXX which is a US treasury money market fund. I have not used the cash plus acct so don’t know its nuances. Call vanguard.
See the links on the sidebar over at r/Bogleheads for the reasons long term investments should be a low-fee index fund that owns the 'whole market'. That would be VT or a 60/40 mix of VTI (US) and VXUS (international). Those include 'everything' so other funds would be redundant. VUSXX would also be a reasonable choice for the short-term liquid side - or if you want to work at it, T-bills of varying durations. These would be state tax exempt if that matters.
And if you buy a bond fund holding longer term bonds, the value of that fund will drop if interest rates go up since now no one wants those low interest bonds when they could get better returns from new issues. And the reverse happens if interest rates go down. There are money market funds (the ones ending in XX) that try very hard to keep the price locked at $1/share for stability using ultrashort bonds for backing. These are pretty safe but do not lock in interest rates (a good thing if they are going up, bad if going down and you want to hold). Also, not sure if anyone has mentioned tax variations. US Treasury based bonds including T-bills and money market funds like VUSXX are exempt from state taxes. Municipal bonds get a federal tax exemption and in some cases also state tax but generally have correspondingly lower returns.
Sell enough to cover your worries and buy t-bills or VUSXX. Part of your portfolio should be in something stable anyway.
That's a serious gamble. You are giving up potential much higher equity growth in about the only tax free place you can get it based on thinking you can guess the best market timing to buy in. Good luck with that. If we could guess things like that we could all be rich. Oh wait, we can't all do better than average... I normally use VUSXX to hold 'safe' cash, but mostly for the state tax advantage.
Don’t lock yourself into a CD and pay a bank/credit union to be a middle man. Learn how to use Treasury Direct or just by SGOV or VUSXX. You’ll get a better rate and learn a thing or two about short duration bills/bonds and yields. You can also lock yourself into a longer term bond in Treasury Direct.
Read this: [https://www.bogleheads.org/wiki/Prioritizing\_investments](https://www.bogleheads.org/wiki/Prioritizing_investments) Then for your long term investments use a low fee index fund that owns the 'whole market'. That would be VT or the equivalent 60/40 mix of VTI (US) and VXUS (international) You can look through the links on the sidebar over at r/Bogleheads for the reasons. You can probably do better with a money market 'fund' at a brokerage than a money market 'account'. VUSXX is a good choice especially if you are in a state with high taxes and go to the trouble of reporting the dividends correctly to get the exemption for US treasuries.
VUSXX is *not* a bond index. It is a *money market fund* which uses Treasury *Bills* as an underlying asset. So similar alternatives would be: * Whatever Treasury Bill backed money market fund Chase offers * Buying 4 week Treasury Bills * Using a money market fund
I personally use money market funds (I personally use VUSXX, but generally any fund ending in "XX" is a money market fund. Verify that before buying though) over opening a separate HYSA. They generally have better or comparable return rates, and if they are investing in treasury bills they are considered low risk.
VMRXX and VUSXX are the best and can be purchased at Vanguard and at JP Morgan Chase. As of today, their yeilds are 4.22% & 4.23%. Money Market Funds at Fidelity and Schwab pay much less.
VMRXX and VUSXX are the best and can be purchased at Vanguard and at JP Morgan Chase. As of today, their yeilds are 4.22% & 4.23%, expense ratio very low.
HYSA, VUSXX, VTIPS, SGOV. Choose your poison
First talk with a tax professional and make sure taxes are considered from the sale. Then other than a high yield savings account, you could look at money market funds that invest in treasury bills or cash like instruments. Something like VUSXX might be of interest.
I have a decent amount of money in a money market like VUSXX that I can use to buy in when there are good deals to be had. For example, I put in thousands back in April and have now outperformed the S&P 500 by over 3x YTD. People may say it’s “missing out on market gains” to not just put it all in but that money includes savings for upcoming big purchases like wedding, home, etc… plus I can replenish it by just allocating more of my next few paychecks to that account
If you want 'safe', use VUSXX treasury-based money market that is state tax exempt if you report the dividends correctly. If you want 'diverse', use VT (or VTI for just US funds).
Thanks will look into your suggestions, not married, no debt. Just rent and typical expenses. Emergency fund is the MM/VUSXX.
SGOV or a Treasury MM like VUSXX
Did some quick math and you would need to invest $20k in SGOV to make $50 more per year than SPAXX. Another option is Vanguard cash account, you can set your core fund to be VUSXX or VMFXX which is a bit closer to SGOV. + pair with any credit card.
It's an estimate of the annualized yield of the MM. You need to read Investopedia. MM are low risk but if interest rates fall I'm assuming your return from this MM and cash plus account will also fall but I don't know because I haven't read VUSXX prospectus so idk what's in the fund. Your MM trades will settle at the end of the day and depending on your account you might have to wait until the following day to see the funds in your settled cash.
If you want that higher APY and also have money availability, look into money market funds on brokerages like Vanguard, Fidelity, and so forth. For example on Vanguard you can put money into VMFXX which has a 4.23% 7-day yield and can be available to you quickly. I think Vanguard even automatically has your settlement cash in VMFXX by default so it’s always earning. I use VUSXX for state tax purposes.
blech. 🤮 look at its price drop in 2022. anything that's "in the market" has possible risk of devastating early performance. i'm imagining having actually followed your advice in say 2021, then witnessing the destructive effects of higher rates for longer in that kind of bond portfolio and suffering a drastic revaluation of the holdings. total return is also dismal. no thanks to target retirement portfolios. i'd rather just sit on VUSXX, forfeit the risk and go with OPs notion of tapping out.
VBIL is the Vanguard 0-3 Month Treasury Bill ETF. The current yield is 4.21%. 0.51% more over the savings account on $200K is $1020 a year more in income without even calculating the $3K a month to be added. SGOV is a very similar 0-3 Month Treasury Bill ETF. Either is fine. The dividends on both are all or nearly all exempt from state income tax if you have that. The raises the taxable equivalent yield to be even better. If you use Vanguard as a broker their VUSXX Treasury money market fund is currently 4.18%. That would be another good choice. The ETFs can be bought at any discount broker for no fee. The ETFs and VUSXX are one business day liquid to cash out and transfer to your bank to use it. I would not leave the money in high yield savings and lose out on $1020+ a year. It's basically free money. Baby on the way? You're gonna need that $1020. Children are worth it, but expensive.
> One thing I am facing now is having a few Thousand (7k) sitting idle waiting for an opportunity. If it's your dry powder, then you keep it sitting there. Since by putting it in a fund, like VUSXX or SGOV, you won't have instant access to it to take advantage of an opportunity. You will have to wait a day. And considering how fast things move, waiting a day could be too late.
80k is my rainy day fund in a VUSXX. I never actually invested those 80k. [](https://investor.vanguard.com/investment-products/mutual-funds/profile/vusxx).
Depends on when you will need the money. If it is many years out, visit r/Bogleheads and follow the sidebar links for investment advice. Maybe you should be bumping up your 401k contributions with the extra money. If it is nearby, stick to any of HYSAs, CDs, T-bills, or money market accounts and they are all going to float around the same rates. My go-to is VMFXX at Vanguard which has the advantage of being their settlement account and always available quickly. Or VUSXX is a similar fund that is all-treasuries and thus fully state tax exempt if you bother to report the dividends correctly instead of only partially like VMFXX. Or you can buy t-bills from the account with a little more trouble and have the income reported as state tax exempt interest in the first place.
If the money is still earmarked as a downpayment, then yes - get it out of the market. Not because of market timing, but because it shouldn't be invested in stock in the first place. Instead of moving it to a bank account, just put it into SGOV, USFR, or even VUSXX at Vanguard.
FZFXX's 7 day SEC yield (which is standardized) is 3.95%. VUSXX's is 4.21%. Etfs use a 30 day yield, so it's not directly comparable, but SGOV is 4.18%.
It looks like FZFXX offers a good rate 5 - 5.2% which beats SGOV and VUSXX. What would be a drawback of using FZFXX rather than these others? Why is the rate higher? There must be some extra risk?
Just put a grand of each in for fun in a test account. Compare how they behave. Nothing wrong with VUSXX, it’s cool. Just sub optimal now that etf is T+1 (the small advantage money market mutual funds had before). The difference is minimal end of the day. So it’s whatever. Have a blessed day. Best of luck.
> The price fluctuation in SGOV is not a relevant issue. When you see price fluctuations - it's because of the fluctuations in the ultra-short term interest rates. That's not what I'm talking about. I'm talking about SGOV is just an equity that trades as an equity. Thus the price is set by the market. Which is currently between 100.25-100.75. But nothing keeps it there. It can trade down to 1 if that's all the market can bear. There's risk. With VUSXX that isn't the case. The price is fixed at a $1. Sure, very very rarely, it can break the buck but that's so rare as to be non-existent. There is more risk with SGOV since it's price is set by the market. There's less risk with VUSXX since it's price is fixed.
The price fluctuation in SGOV is not a relevant issue. When you see price fluctuations - it's because of the fluctuations in the ultra-short term interest rates. VUSXX has the same fluctuations which is reflected in the daily yield. The reason to choose one over another is if someone really cares about the differences of 2 weeks in the duration. For the vast majority of people - it's really doesn't matter that much.
> This is the right answer. SGOV for short term. I would go with VUSXX instead. No chance of price fluctuation and it has a lower expense ratio.
VUSXX and chill. Although I’d out half of that $150k back in VFIAX, assuming you do t need it for 5+ years.
BACKGROUND: Beginner investor here. In Texas so no state income tax, managed to max out traditional Ira for $7500 this year, no debt, no kids, nothing crazy I want to buy/do, etc, my goal is to get around 4.5% or higher on parked cash in my bank account with a little to no risk vessel like a hysa or mmf. I had in a HYSA with a fintech bank but they kept lowering my rate (even when the amount they advertised was adjusted I always would get lower than that, and had to call in to get it adjusted). I tried to use Roger bank and wanted to transfer 100k and they kept giving me issues when I made a new account and requested to increase the amount to bring in so I cancelled them. QUESTIONS: 1.) What’s the difference between just putting my money into SGOV vs a HYSA? I’m seeing there is also VUSXX, FZFXX, etc. 2.) I like to be very liquid at all times so if I were to go back and forth and buy 100k in SGOV, enjoy the interest, the sell it all in 5 months. The a month later I decide to put 100k back in? I’m only responsible for interest amount or the whole 100k? Would this cause tax implications or is there a more simplified way to handle this? 3.) What suggestions would you have?
$5/month is not a bad deal to cover after death costs. I suggest having $500-$1,000 in a savings account in case of an emergency, but the actual amount is up to you. I had to take my daughter’s hamster to emergency once and it cost $500! I suggest saving 6-9 months of your monthly expenses in a T-Bill or money market fund. Start out slowly and you’ll eventually get there. I’m in California and T-bills are exempt from state/local taxes and as are money market funds as shown below: • Vanguard Treasury Money Market Fund (VUSXX) • Fidelity Treasury Only Money Market Fund (FDLXX) • Schwab Treasury Obligations Money Fund (SNOXX) There are pros and cons to both so do a bit of research
Why are you holding 2 different S&P 500 funds? It's silly and redundant. VUSXX isn't a good long term investment. It's a place to store short term money. Like an emergency fund, car/house down payment. If you need the money in VUSXX for an emergency fund or whatever, that's fine. If you want that money to be in long term investments, then move to broadly diversified index funds. A total US fund + total international fund (VTI + VXUS) is a great choice. There's no real reason to hold specifically an S&P500 fund in an account where you can choose whatever investment you want.
I think I'm going move half of my VUSXX cash into VOO, and then invest a couple thousand in a broader index that covers the whole market like VTI.
Seen people suggest SGOV and VUSXX, I understand fidelities is an ETF and vanguards is a mutual fund, they look fairly similar in returns and expense fees, is a reason why you would go with one over the other?
There is nothing low risk that is paying 5%+. Similar risk to HYSA would be things like short term bond and brokerage money market funds. SGOV and VBIL are good short term bond funds, currently yielding \~4.18%. Vanguard's MMFs VMFXX and VUSXX are currently \~4.23%. Other broker MMFs are lower because of their higher expense ratio. Fidelity's SPAXX is \~3.97%. The 0.58% difference between 4.18% and a HYSA at 3.6% on $45K would earn an additional $261 a year.
> You can also use any brokerage and buy short term fund like SGOV. Currently yield is 4.17%. SGOV could go down sightly in value through. That's why I don't use SGOV. I use a MMF like VUSXX. SGOV is a security that can trade at whatever it trades at. VUSXX is fixed at a $1. It also has a lower expense ratio.
I always recommend to lock in freedom first....then take smart risks. A good move is to split between stability and upside: park 10–15% in money markets like VUSXX (5.25%) for liquidity, 15% in high-yield REITs like STWD (10%+), 20–25% in index ETFs like VOO or VTI, 15% in covered-call ETFs like JEPI (8.5% yield), 15–20% in high-growth AI stocks like NVDA or SMCI, and keep <5–10% for optional plays like the Wheel strategy or 0DTE options only if you know what you’re doing...
Curious on people's thoughts on VMSXX vs VUSXX
Oh thanks for clarifying things. So what do you suggest? Just take less with a HYSA, or go with SGOV, or VUSXX (I believe that’s a money market account). When they sketchy bonds crash happened back then, did ishares have any part in that or VUSXX? And yes that’s what I was worried about. I didn’t want it to look like a wash out, but sometimes I like to move money around to the bank paying the highest interest rate so that’s why I was wondering what’s the best way to go about it? Thanks for the help!
>If I want to put 20k into VUSXX money market fund do I just do that in my brokerage account and then I'll be able to sell only the VUSXX if/when it's needed? Yes, exactly. I have two different taxable brokerage accounts, one for emergency funds and one for longer-term investing, to make it easier for me to monitor them separately, but you don't need to do that. But yes, you buy now, and then later when you need it you sell and after it settles to cash you transfer it to your bank. I would advise making sure the bank accounts are already set up now in Vanguard so you don't have to do that when you need the cash, since it'll take about a week as it is to get the money moved.
Some banks were paying higher than Treasury money markets. Up until just recently, First Foundation Bank had been consistently paying more than VUSXX even going back before covid
My employer sponsored 401k (started in 2018) is set up through vanguard so I just utilize vanguard to keep it simple. In 2018 I also opened up a Roth IRA as well as an individual brokerage account. My Roth is already maxed out for the year and 401k will be maxed out by November. I have ~20k in savings that can be accessed instantly but it's sitting in an account earning 0.95%. After reading through this sub and some others I've determined that I want to put my "emergency fund" in VUSXX which is currently at 4.23%. Realistically 20k is well over a years worth of emergency funds for my family. Now for the ignorant question... my individual brokerage account just has VXUS and some other funds. If I want to put 20k into VUSXX money market fund do I just do that in my brokerage account and then I'll be able to sell only the VUSXX if/when it's needed? Bear with me here, I realize this is a dumb question for all of you experienced with investing but I've never sold any funds before. I've only ever made contributions to plan for retirement
My conservative position in my E*trade is VUSXX and in Fidelity it is FZDXX. I have viewed these as safe holdings that are better than cash, like a HYSA. Care to comment on if these are good positions for someone trying to preserve value and make sure not to lose money to inflation?
USFR might be marginally better. But yes VUSXX is very good
We use VUSXX along with a regional bank that gives 4.15% and First Foundation Bank 4.31%
Yes, I know it's boring, but I would really like something like a leveraged VUSXX.
I see what you're saying but I still don't get it but you can do what you want. My suggestion remains: $100k = SGOV (or VUSXX) $100k = VOO or VTI
I would probably invest in VUSXX or SPAXX after selling.
If I had million bucks and was not planning on buying property with it: * VUSXX or SGOV 10% * SPY or VOO 30% * QQQ or VGT 30% * BRK.B 30% I've been DCA via 401k and Brokerage accounts into something like the above since 1993 and have about $4.1M bucks now. It's the get rich slowly method.
SGOV is a short term bond fund, not a money market fund. VMFXX is a MMF. Both make a reasonable substitute for a savings account. There are pros and cons to each. SGOV dividends are usually all or close to all state tax free. VMFXX has been \~50% state tax free. If you use VMFXX as your Vanguard settlement fund it is same day liquid to do an ACH transfer to someplace that you can spend it or use it to buy something else at Vanguard. SGOV settles one day after a sale so it takes 1-2 days before you can ACH transfer it out. The proceeds of SGOV can be used the day of the sale, but before settlement, to buy something else at Vanguard. But that triggers the first half of a good faith trading violation. You're ok as long as you don't sell what you bought with unsettled funds before the funds from the sale of SGOV settle. Recently SGOV yield has been less than VMFXX. SGOV being more state tax free may make the net/effective yield better than VMFXX depending on your state tax rate. VUSXX is a Vanguard Treasury bond MMF. Its yield recently has been as good or better than VMFXX. As a Treasury fund it has been all or nearly all state tax free. VUSXX can't be used as a settlement fund so it trades and transfers the same way as SGOV. Unless you have a huge amount of money in these the slight differences in yield doesn't amount to anything worth agonizing about optimizing. Pick one and get on with life.
that's what we use. for some reason, it's the lesser talked about treasury money market option. SGOV and USFR are the (2) funds that get recommended the most we keep our real estate acquisition fund in VUSXX. it's usually one of the highest rates out there and we like to keep our money with Vanguard. we have kept it in select banks as well who were offering various rate promos or simply had a higher rate b/c they wanted to increase deposits (ie First Foundation Bank which has a rate higher than VUSXX last I checked actually)
VUSXX is pretty much the same yield as VMFXX but has the state income tax advantage as well.
Look at VUSXX. Same yield as VMFXX but since it's treasuries, more of the dividends are not subject to state income tax.
I wanted to know is it better to put 100k in a HYSA earning 4.5% in a fintech/digital bank, or open a brokerage account in SGOV or is VUSXX better? What are the pros and cons to each, because I don’t think SGOV/VUSXX stock price would fall, but the US economy would have to tank right to lose the 100k?