1Traditional bank savings accounts calculate interest using annual percentage yield (APY), while money market funds use the 7-day SEC yield formula. APY is the real rate of return earned on an investment, considering the effect of compounding interest. Compounding interest is calculated periodically, and the amount is almost immediately added to the balance. 7-day SEC yield is calculated based on the fund's average 7-day distribution and allows for comparison across many money market products. This yield includes distributions paid by the fund plus any appreciation over a 7-day period, minus average fees within 7 days.
2In 2016, the SEC began requiring institutional money market funds to have a floating share price like stock or bond funds. Institutional money market funds are intended for institutional investors, and Vanguard doesn't offer them to retail investors.
37-day SEC yield is calculated based on the fund's average 7-day distribution and allows for comparison across many money market products. This yield includes distributions paid by the fund plus any appreciation over a 7-day period, minus average fees incurred during 7 days.
4Recently instituted money market requirements will do away with gates and adjust when and how fees are applied. While rules aren't yet in effect, the rule amendments will become effective 60 days after publication in the Federal Register with a tiered transition period for funds to comply with the amendments. For more information, see the SEC press release regarding money market fund reforms and amendments.
5For the quarter-end, year-to-date, 1-year, 3-year, 5-year, and 10-year periods ended December 31, 2023, 6 of 6 Vanguard money market funds, 70 of 83 Vanguard bond funds, 21 of 23 Vanguard balanced funds, and 124 of 136 Vanguard stock funds—for a total of 221 of 248 Vanguard funds—outperformed their Lipper peer-group averages. Only mutual funds and ETFs (exchange-traded funds) with a minimum quarter-, 1-, 3-, 5-, or 10-year history, respectively, were included in the comparison. Source: Lipper, a Thomson Reuters Company. The competitive performance data shown represent past performance, which is not a guarantee of future results.View fund performance
For more information about Vanguard funds or ETFs, visit vanguard.com to obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information about a fund are contained in the prospectus; read and consider it carefully before investing.
You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not a bank account and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor is not required to reimburse the Fund for losses, and you should not expect that the sponsor will provide financial support to the Fund at any time, including during periods of market stress.
Bank deposits and CDs are guaranteed (within limits) as to principal and interest by an agency of the federal government.
Bank accounts can offer more liquidity, ATM access, and overdraft protection. You should consider all material differences before choosing to invest.
All investing is subject to risk, including the possible loss of the money you invest.
While U.S. Treasury or government agency securities provide substantial protection against credit risk, they do not protect investors against price changes due to changing interest rates. Unlike stocks and bonds, U.S. Treasury bills are guaranteed as to the timely payment of principal and interest.
There may be other material differences between products that must be considered prior to investing.
Although the income from a municipal bond fund is exempt from federal tax, you may owe taxes on any capital gains realized through the fund's trading or through your own redemption of shares. For some investors, a portion of the fund's income may be subject to state and local taxes, as well as to the federal alternative minimum tax.
