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Post by mozart522 on Jul 1, 2022 12:42:44 GMT
VG MM distribution yield is up 74% over last month and 382% over the May2nd distribution. Annual yield currently 1.39% and rising.
One can argue that is 6.6% below inflation, but then is doesn't come with a 15-20% paper loss either.
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Post by retiredat48 on Jul 1, 2022 16:33:56 GMT
Thanks...
R48
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Post by anitya on Jul 1, 2022 18:11:55 GMT
Just adding more info to the thread.
VMFXX is Vanguard's sweep account and is yielding 1.39%. Fidelity non-sweep MMFs are yielding slightly higher, if folks are parking a lot of cash in MMFs.
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Post by yogibearbull on Jul 2, 2022 12:20:05 GMT
Fido also has the policy of automatically tapping non-core/settlement m-mkt funds if needed to cover purchases. At other brokerages, one has to do transfers into the core/settlement fund. Schwab doesn't offer any m-mkt funds as core/settlement. M-mkt funds should track $IRX (3-mo T-Bills; scale is 10x) with a small delay and accounting for m-mkt ERs. stockcharts.com/h-sc/ui?s=%24IRX&p=D&yr=1&mn=0&dy=0&id=p47293861101 |
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Post by mozart522 on Jul 2, 2022 13:40:19 GMT
yogibearbull ",M-mkt funds should track $IRX (3-mo T-Bills; scale is 10x) with a small delay and accounting for m-mkt ERs. stockcharts.com/h-sc/ui?s=%24IRX&p=D&yr=1&mn=0&dy=0&id=p47293861101" So if I understand what you are saying, in a rate environment like today, one would be better off with the MM than the 3-mo T-bill, as the MM yield would be expected to rise during the 3 months while the t-bill yield is fixed for 3 months. And of course, the opposite would be true as rates drop,
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