Saturday, August 20, 2005

Money Market Funds

Money market funds are coming back to life with yields approaching 3% or better. During the last year, the rates have come from below 1% to 3% following the Fed Funds rates. If the Federal Reserve keeps raising the rates going forward then the Money Market rates should approach 4% by the end of this year. Below is the list of Money Market Funds from the major fund families.

Vanguard Prime Money Market Fund (VMMXX)
  • Current yield is 3.18%

  • Expense Ratio of 0.30%

  • Average Maturity of the holdings is 36 days

  • $3,000 minimum is required for General Non-IRA account

  • Assets of about $51 billion

Fidelity Cash Reserves (FDRXX)
  • Current yield is 3.16%

  • Expense Ratio of 0.42%

  • $2,500 minimum initial investment required for General Non-IRA account

  • Assets of $59.5 billion

Fidelity Select Money Market (FSLXX)
  • Current yield is 3.23%

  • Expense Ratio of 0.39%

  • $2,500 minimum initial investment required for General Non-IRA account

  • Assets of about $617 millions

Fidelity US Government Reserves (FGRXX)
  • Current yield is 3.16%

  • Expense Ratio of 0.35%

  • $2,500 minimum initial investment required for General Non-IRA account

  • Assets of about $2.3 billion

T. Rowe. Price Prime Reserve (PRRXX)
  • Current yield is 2.94%

  • Expense Ratio of 0.62%

  • $2,500 minimum initial investment required for General Non-IRA account

  • Weighted average maturity is 42 days

  • Assets of about $4.9 billion

The data is as of August 20, 2005. The accuracy of the data cannot be guaranteed. All disclaimers apply.

3 comments:

Jose Anes said...

When ING Direct, and Emigrand Direct have money market accounts with better yields, the only advantage I see from these funds is the ability to quickly transfer money to other funds of the same Company/Family.


Money And Investing

Joe said...

I prefer ING.

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Jeannette Easter said...

I wonder why T. Rowe's money market fund is lagging like that. Not only that, but they seem to have a hard time bringing costs down, even with the volume that they have. Maybe they should focus more on longer term bonds.