Does Vanguard Prime Money Market Fund’s expense ration take out a large bite?

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Jesteroftheswamp
Posts: 94
Joined: Fri Sep 02, 2016 4:25 pm

Does Vanguard Prime Money Market Fund’s expense ration take out a large bite?

Post by Jesteroftheswamp » Sat Nov 10, 2018 8:06 pm

I have about $60K in a Cap One MMA earning 1.75%. I was thinking about moving some money over to Vanguard Prime Money Market Fund but am thinking with the expense ration isn’t it likely that the Vanguard fund will net less, or at best an equivalent, to the Cap One MMA?

Momus
Posts: 538
Joined: Tue Feb 21, 2012 9:23 pm

Re: Does Vanguard Prime Money Market Fund’s expense ration take out a large bite?

Post by Momus » Sat Nov 10, 2018 8:10 pm

Vanguard Prime MM or Fed MM already include expense ratio on their return. So, what you see is what you get 2-2.23% net return. I would move it yesterday if I were you.

retiringwhen
Posts: 530
Joined: Sat Jul 08, 2017 10:09 am
Location: New Jersey, USA

Re: Does Vanguard Prime Money Market Fund’s expense ration take out a large bite?

Post by retiringwhen » Sun Nov 11, 2018 8:08 am

Momus wrote:
Sat Nov 10, 2018 8:10 pm
Vanguard Prime MM or Fed MM already include expense ratio on their return. So, what you see is what you get 2-2.23% net return. I would move it yesterday if I were you.
Agreed, SEC yields are AFTER expenses are deducted for all mutual fund products. Btw, look at VUSXX if you live in a high tax state, it may do a smodgen better and is slightly Les risk.

vwgrrc
Posts: 44
Joined: Mon Jul 18, 2016 5:35 pm

Re: Does Vanguard Prime Money Market Fund’s expense ration take out a large bite?

Post by vwgrrc » Sun Nov 11, 2018 8:30 am

Btw, you need to look at the compund yield below SEC yield if you are comparing it to a saving account, which will be 2.25% in this case.

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