8 Best Money Market Funds of 2024

Money Market Funds (MMFs) are open-ended mutual funds that invest in short-term, high-quality debt and cash equivalents such as treasury bills and commercial paper. They offer income, stability and liquidity, and help address the problem of “cash drag” in the short-term; when investors are not sure where to reinvest their cash. Think of money market mutual funds as a cash management solution intended to offer portfolio diversification, liquidity and operational ease with low credit risk. For conservative investors looking for short-term opportunities to preserve capital, MMFs are excellent choices. Their popularity has grown, especially as interest rates have risen. In fact, the current dividend yield offered by MMF is significantly higher relative to the past 10 years.

PRO TIP:

To select the best Money Market Mutual Funds (MMFs), we applied the following criteria, which you can also use in your search:

1. 1. Low Minimums and Fees: Target funds that are accessible with low initial investments, specifically those requiring $3,000 or less. Also, choose funds with expense ratios of 0.60% or lower to ensure more of your investment goes towards potential returns.
   2. Substantial Assets Under Management (AUM): Look for funds with at least $4 billion in AUM. A higher AUM often reflects investor confidence and the fund’s stability in the market.
   3. High Yields: Prioritize funds with a 30-day SEC yield above 4.00%. The SEC yield, calculated after deducting expenses, is a key indicator for comparing the performance of mutual funds.
   4. Accessibility: Consider funds that are widely available and not limited to certain brokerages, advisors, or pension schemes, providing you with greater flexibility in your investment choices.

The Koyfin Screener allows scanning through more than 100K global securities using 5,900+ filter criteria. Add the “Money Market” asset type and set filters as mentioned in our Pro Tip to refine your search.

Begin Your MMFs Search

For those interested in other screening tools, the ‘Best Stock Screeners’ blog post offers a comparison to help find the perfect match.

*Data as of February 13th, 2024

Investing in MMFs requires regular monitoring. Keep an eye on market interest rates and economic indicators, as they directly affect MMF returns. Also, watch for shifts in fund management strategies and market regulations, which can impact fund performance and stability.

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SPAXX is a government money market fund managed by Fidelity that deploys its investors money into cash, US government securities and repurchase agreements as well as reverse repurchase agreements. Repurchase agreements, sometimes referred to as Repos, are overnight loans to the Federal Reserve, backed by US Treasury. The Fed repurchases them the following day at a slightly higher price. That premium is the implicit interest rate.

Launched in February 1990, this fund has grown to an incredible $247.5 billion in assets under management. While the expense ratio is 0.42%, higher than some of the other entrants in this list, the 4.67% yield and incredible size ought to make up for that. While MMFs are not the same as bank deposits, if a crisis arises, funds with the largest asset bases are the ones best equipped to preserve your principal. This fund requires a minimum initial investment of only one US Dollar; one of three funds on our list with such low minimum investment levels.

Key Investment Insights for Fidelity Govt. Money Market (SPAXX):

SPRXX is a money market fund managed by Fidelity that primarily allocates its funds into US dollar-denominated money market securities, repurchase agreements, and potentially reverse repurchase agreements. They also invest in commercial debt and certificates of deposit and intend to invest at least 25% of its assets in the financial services sector.

Established in January 1989, SPRXX has grown to $54.4 billion in assets under management and has an expense ratio of 0.42%, with a notable yield of 4.77%. This fund is the second on our list with a minimum initial investment of just one US Dollar.

Key Investment Insights for Fidelity Money Market (SPRXX):

VUSXX, known as Vanguard Treasury Money Market Fund, is a fixed-income fund under the Vanguard Admiral Funds banner, emphasizing US Treasury securities in its investment strategy; where at least 80% of the funds’ assets will be invested. The remaining assets are invested into repurchase agreements, backed by the US Treasury.

The Fund maintains a dollar-weighted average maturity of 60 days or less and a dollar-weighted average life of 120 days or less. Launched on December 14, 1992, VUSXX has consistently grown its holdings, currently managing $44.5 billion in assets. With an expense ratio of 0.09%, it positions itself as one of the cost-effective choices for investors. The fund’s 4.94% yield complements this cost advantage, making it an attractive option for those seeking steady returns. For that low cost, however, investors must make an initial minimum investment of at least $3,000.

Key Investment Insights for Vanguard Treasury MMF (VUSXX):

VMFXX, the Vanguard Federal Money Market Fund, is the larger sister fund of VUSXX. With the same minimum initial investment of $3,000 and a slightly higher expense ratio of 0.11%, the VMFXX fund offers a slightly higher yield of 4.98% and a larger asset base of $233.2 billion.

Unlike VUSXX which primarily invests in US Treasury securities and repurchase agreements, VMFXX follows a slightly different portfolio construction; including investments in short-term, high-quality money market securities issued by US government agencies.

Key Investment Insights for Vanguard Federal MMF (VMFXX):

IMRXX, the Invesco Treasurer’s Series Trust Premier Portfolio, has the highest 30-day SEC yield on our list at 5.55%. The fund comes with an expense ratio of 0.18% and primarily channels its investments into cash, US government securities, corporate securities from creditworthy entities, and various bank obligations, among other short-term securities. IMRXX has accumulated $3.4 billion in assets under management and requires a minimum initial investment of $1,000.

Key Investment Insights for Invesco Premier Portfolio (IMRXX):

MJLXX is a money market fund managed by JP Morgan, primarily channeling its portfolio into high-quality, short-term money market instruments payable in US dollars. They also invest in corporate debt, commercial paper, funding agreements, repurchase agreements, certificates of deposit and bank obligations.

Incepted in 2005, MJLXX has $14.4 billion in assets under management. The 0.43% expense ratio is the highest on our list, with a yield of 4.68%. For investors looking for funds that include environmental, social and governance (ESG) factors in its investment decisions, MJLXX managers are known to do just that. However, the fund’s literature makes it clear that considering ESG factors do not alter the fund’s strategic goals. This fund requires a minimum initial investment of $1,000.

Key Investment Insights for JPMorgan Liquid Assets MMF (MJLXX):

SWVXX is a global money market fund managed by Charles Schwab, placing its focus on high-quality short-term money market investments from both US and foreign issuers. This includes assets like commercial paper, promissory notes, and obligations backed by the US government.

Incepted on April 30, 1992, SWVXX has expanded its footprint to $95 billion in assets under management, the second largest on our list. The fund’s expense ratio stands at 0.31% with a robust yield of 4.93%, and is the third fund on our list with a minimum initial investment of one US Dollar.

Key Investment Insights for Schwab Value Advantage MMF (SWVXX):

AIMXX, operated by Invesco, is a government money market fund that allocates its assets primarily towards high-quality, US dollar-denominated short-term debt instruments. The fund also allows flexibility to invest up to 50% of its assets in US dollar-denominated foreign securities. The fund’s core strategy revolves around the preservation of capital and liquidity, emphasizing a careful selection of instruments backed either by the US Government or its agencies, among others.

Incepted in 1993, AIMXX is the second smallest fund on our list with $3.5 billion in assets under management. AIMXX has an expense ratio of 0.45%, a yield of 4.64%, and requires a minimum initial investment of $1,000.

Key Investment Insights for Invesco Govt. Money Market (AIMXX):

How To Find Top Money Market Funds

Step 1: Sign Up to Koyfin for Free. Register an account and get started; no credit card required. 

Step 2: Create a Screener. Head to ‘My Screens’, create a new Mutual Fund screener and give it a name. 

Step 3: Define your Investment Universe. Add the “Money Market” asset type. 

Step 4: Add Filter Criteria. We have thousands of data points you can add to a screener. 

Step 5: Create Screen. When you are happy with your screener, give it a name, hit save and apply. You can also save this screener output as a watchlist too.

How to Create a Watchlist for Top Money Market Funds

Step 1: Sign Up to Koyfin for Free. Register an account and get started; no credit card required.  

Step 2: Create a Watchlist. Head to ‘My Watchlists’, create a new watchlist and give it a name. 

Step 3: Add Tickers. Click ‘Add Ticker’, then ‘Import Securities’, then copy and paste the below list of tickers. 

SPAXX, SPRXX, VUSXX, VMFXX, IMRXX, MJLXX, SWVXX, AIMXX

Step 4: Customize Columns. Hit the ‘Columns’ icon to add and remove columns from your watchlist table. 

We have thousands of data points you can add to a watchlist, including fundamental data, price and returns data, analyst estimates, percentile ranks, security information, portfolio tools, and the ability to create your own formulas and labels. 

Now your watchlist is ready, and you can use the rest of the Koyfin terminal to track and analyze these funds.

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Our insights are derived solely from historical information and analyst predictions, employing an impartial approach. Please note that our articles do not serve as financial guidance.