Money Empire

7 Best Money Market Funds to Buy for Safety

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If you're looking for a safe place to put your money, money market funds are a great option. These funds invest in short-term debt instruments such as government Treasuries, certificates of deposit, and commercial paper. While they may not offer the high returns of some other investment options, they do offer the peace of mind that comes with knowing your principal is safe.

Here are seven of the best money market funds to buy for safety:

Vanguard Federal Money Market Fund (VMFXX)

Vanguard's Federal Money Market Fund is a great option for investors looking for a low-cost, low-risk way to invest their money. With an expense ratio of just 0.11%, this fund is a great choice for investors who want to keep their costs low while still having their money invested in a safe place. The fund's 5.3% 7-day SEC yield is higher than the average for a money market fund.

JPMorgan Prime Money Market Fund (VMVXX)

JPMorgan's Prime Money Market Fund is a good choice for investors who want to invest their money in a diversified portfolio of short-term debt instruments. The fund has an expense ratio of 0.50% and a 5.2% 7-day SEC yield. While the yield is slightly lower than the average for a money market fund, the fund's diversification and low expenses make it a good choice for investors who want to keep their money safe.

Vanguard Municipal Money Market Fund (VMSXX)

If you're looking for a money market fund that invests in municipal bonds, Vanguard's Municipal Money Market Fund is a great option. The fund has an expense ratio of 0.15% and a 3.4% 7-day SEC yield. While the yield may not be as high as some other options, the fund's diversification and low expenses make it a good choice for investors who want to invest in municipal bonds while keeping their money safe.

Invesco Government Money Market Fund (INAXX)

Invesco's Government Money Market Fund is a good choice for investors who want to invest their money in short-term government debt instruments. The fund has an expense ratio of 0.32% and a 4.9% 7-day SEC yield. The fund's diversification and low expenses make it a good choice for investors who want to keep their money safe while benefiting from the security of government debt instruments.

SPDR Bloomberg 1-3 Month T-Bill ETF (BIL)

If you're looking for a money market fund that can provide liquidity and safety with minimal volatility, consider investing in SPDR Bloomberg 1-3 Month T-Bill ETF. This exchange-traded fund provides exposure to short-term U.S. Treasuries with a focus on the 1- to 3-month maturity range. The fund's expense ratio is just 0.14%, and its 4.97% 7-day SEC yield is competitive with other money market funds. The ETF's holdings are composed of Treasury bills, which are some of the most liquid and least volatile financial instruments in the market. As a result, this fund provides investors with a low-risk way to diversify their portfolios while maintaining liquidity and capital preservation.

iShares 0-3 Month Treasury Bond ETF (SGOV)

If you're looking for a more diversified investment than a money market fund but still want to maintain a high level of safety, consider investing in iShares 0-3 Month Treasury Bond ETF. This exchange-traded fund provides exposure to short-term U.S. Treasuries with a focus on the 0- to 3-month maturity range. The fund's expense ratio is just 0.07%, and its 5.37% 7-day SEC yield is slightly higher than the average for a money market fund. The ETF's holdings are composed of Treasury bonds, which are some of the most liquid and least volatile financial instruments in the market. As a result, this fund provides investors with a low-risk way to diversify their portfolios while potentially earning slightly higher yields than a traditional money market fund.

Invesco Short Term Treasury ETF (TBLL)

Invesco Short Term Treasury ETF is a great choice for investors who want to diversify their portfolio with exposure to short-term government Treasuries. The fund's expense ratio is 0.08%, and its 5.22% 7-day SEC yield is slightly higher than the average for a money market fund. The ETF's holdings are composed of government Treasuries with a focus on the short-term maturity range, providing investors with a low-risk way to diversify their portfolios while maintaining liquidity and capital preservation.

In conclusion, these seven money market funds and ETFs provide investors with a range of options for safely investing their money. Each fund has its own unique characteristics and investment objectives, allowing investors to choose the best fit for their investment needs and risk tolerance. With low expenses, liquidity, and a focus on safety, these funds are a great choice for investors who want to protect their capital while still generating attractive returns.