Does Vanguard have a tax-exempt money market fund? (2024)

Does Vanguard have a tax-exempt money market fund?

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).

Does Vanguard have a tax free money market fund?

Vanguard Municipal Money Market Fund's investment objective is to seek to provide current income that is exempt from federal personal income taxes while maintaining liquidity and a stable share price of $1. As such it is considered one of the most conservative investment options offered by Vanguard.

Which money market funds are tax-exempt?

Are money market funds at Vanguard safe?

Money market funds and other securities held in the Vanguard Brokerage Account are eligible for SIPC coverage. Securities in your brokerage account are protected up to $500,000. To learn more, visit the SIPC's website. Up to $250,000 by FDIC insurance.

What is rate of return for Vanguard Federal money market?

How are Vanguard money market funds taxed?

The earnings from money market funds can come from interest income or capital gains, so they're taxed the same way as other investment income.

What is the difference between Vanguard Vmfxx and Vmrxx?

One key difference between VMRXX and VMFXX is that VMRXX invests more than 25% of its assets in securities issued by companies in the financial services industry. In contrast, VMFXX invests primarily in government-backed securities.

Should I buy tax-exempt money market funds?

Taxable funds generally have higher returns—nominally. But if the tax on those returns effectively wipes out the additional return, the more optimal choice is the tax-free fund. So, the choice is obvious: The tax-free money market is the way to go because the tax savings provide a better yield.

Is there a tax free money market account?

FMOXX - Fidelity ® Tax-Exempt Money Market Fund | Fidelity Investments.

Does Fidelity have a tax free money market?

FMOXX - Fidelity ® Tax-Exempt Money Market Fund | Fidelity Investments.

What are the risks of Vanguard money market fund?

Principal Risks

The Fund is designed for investors with a low tolerance for risk; however, the Fund is subject to the following risks, which could affect the Fund's performance: Income risk, which is the chance that the Fund's income will decline because of falling interest rates.

What is the safest money market fund?

Vanguard Treasury Money Market Fund

This fund only invests in US Treasuries and repurchase agreements insured by the federal government, making it among the safest in a category of relatively safe investments.

Does Vanguard have a prime money market fund?

Vanguard Prime Money Market Portfolio | Vanguard.

Is Vanguard money market better than savings account?

Bottom line

The key difference between the two is that high-yield savings accounts are FDIC-insured, while money market funds are not. However, money market funds are considered very low-risk investments and may even have higher interest rates than high-yield savings accounts.

How often does Vanguard money market pay dividends?

Over the course of the month, VMFXX collects income from the investments it owns (more on this later), which it then pays out on the first trading day of the following month. For example, on September 1, 2023, the VMFXX dividend per share was $0.00473, which came from income earned during the month of August 2023.

How much does Vanguard money market account pay?

Vanguard Federal Money Market Fund (VMFXX)

This low-risk fund aims to provide a balance between cash flow and liquidity. VMFXX has a seven-day SEC yield of 5.3%. The investment minimum is $3,000, and the fund has a 0.11% expense ratio.

Is Vanguard Federal money market exempt from state tax?

For example, if you reside in California and own shares of Vanguard California Municipal Money Market Fund, the income reported on Form 1099-DIV, Box 12, is 100% exempt from California state income tax.

Do you pay taxes on money market funds?

Typically, money market funds pay dividends monthly, and the earnings made in 2023 "could be significant," said Day. "But unfortunately, this is before taxes." Rather than more favorable capital gains rates, you'll owe regular income taxes on money market fund earnings, with a top bracket of 37%.

Does Vanguard offer high yield savings accounts?

The Vanguard Cash Plus Account, offering access to a 4.70% APY,* is here. See how we can help you make the most of your savings.

What happened to Vanguard Prime money market?

VALLEY FORGE, PA (August 27, 2020)—Vanguard today announced the following changes to its taxable money market fund lineup: Vanguard Prime Money Market Fund will be reorganized into a government money market fund and renamed Vanguard Cash Reserves Federal Money Market Fund.

What is the current yield of VMRXX?

What is the minimum balance for VMRXX?

Launched in 1989 and holds total assets of $88.5 billion as of July 31, 2022. The portfolio contains 155 securities. The minimum investment is $3,000, and any additional investment after that is priced at $1 per share.

What are two disadvantages of a money market fund?

What is the 7 day yield on a money market fund?

The seven-day yield is a method for estimating the annualized yield of a money market fund. It is calculated by taking the net difference of the price today and seven days ago and multiplying it by an annualization factor. Since money market funds tend to be very low risk, the higher the seven-day yield the better.

What is the tax rate on money market funds?

Income earned from money market fund interest is taxed as regular income, up to 37% depending on the investor's tax bracket. While some local and state taxes offer breaks on income earned from U.S. Treasury bonds, federal income tax still applies.