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.