Vanguard Money Market Treasury: A Deep Dive into 27 Possible Applications

Introduction

In today's uncertain economic climate, finding a safe and secure place to park your money is more important than ever. Vanguard Money Market Treasury (VMMXX) is a popular option for investors looking for a low-risk, high-yield investment. In this article, we'll take a deep dive into VMMXX, exploring its features, benefits, and potential applications.

Features of Vanguard Money Market Treasury

• High Yield: VMMXX offers a competitive yield that is typically higher than traditional savings accounts.
• Low Risk: VMMXX invests in short-term Treasury securities, which are considered to be among the safest investments in the world.
• FDIC Insured: Up to $250,000 of your investment is protected by the Federal Deposit Insurance Corporation (FDIC).
• Minimum Investment: The minimum investment for VMMXX is just $1,000.

Benefits of Vanguard Money Market Treasury

• Safe and Secure: VMMXX's investment in Treasury securities makes it a low-risk investment, suitable for even the most conservative investors.
• High Liquidity: You can access your money in VMMXX anytime you need it, with no penalties or fees.
• Tax-Efficient: VMMXX is considered a money market mutual fund, which means it is not subject to income tax on its dividends.
• Convenient: VMMXX can be purchased and managed online, making it a convenient investment option.

Potential Applications of Vanguard Money Market Treasury

VMMXX is a versatile investment that can be used for a variety of purposes, including:

• Emergency Fund: VMMXX is a great place to keep your emergency fund, as it provides easy access to your money and a competitive yield.
• Short-Term Savings: VMMXX is a good option for short-term savings goals, such as a down payment on a house or a new car.
• Retirement Planning: VMMXX can be used as a conservative investment option in a retirement portfolio.
• Cash Management: VMMXX can be used as a way to manage your cash flow, by providing a safe and secure place to park your extra money.
• Money Market Account Alternative: VMMXX offers similar features to a money market account, but with a potentially higher yield.
• Diversification: VMMXX can be used to diversify your investment portfolio and reduce overall risk.
• Schwab Bank Money Market Fund: VMMXX can be held in a Schwab Bank Money Market Fund, which offers a check-writing feature and additional FDIC insurance.
• Other possible applications: Cash management, Investment vehicle, Retirement planning, Short-term savings, and Emergency fund.

Comparison to Other Vanguard Money Market Funds

¹ As of July 27, 2023

As you can see from the table above, VMMXX has a higher yield than the other Vanguard money market funds, while still offering the same level of safety and security.

How to Invest in Vanguard Money Market Treasury

You can invest in VMMXX through Vanguard's website or by calling their customer service number. You will need to provide your personal information and investment instructions.

Conclusion

Vanguard Money Market Treasury is a safe, secure, and high-yield investment that can be used for a variety of purposes. Whether you are looking for a place to park your emergency fund, save for a short-term goal, or diversify your investment portfolio, VMMXX is a great option to consider.

Additional Resources

• Vanguard Money Market Treasury Fund
• Money Market Accounts vs. Money Market Mutual Funds
• How to Choose the Right Money Market Account

Tables

Table 1: Vanguard Money Market Treasury Returns

Table 2: Comparison to Other Vanguard Money Market Funds