Because as others noted above, Fed MM may actually be safer than FDIC insurance. If this ever becomes a relevant question, we will all have much bigger problems.wade22 wrote: ↑Sat Aug 03, 2019 9:01 am Even though a current-day MM account might be exposed to similar or less risks on paper, it seems it's still susceptible to temporarily losing value in times of turmoil with no guarantee backing it's short-term value. When it comes down to it, why would I want a non-insured limbo account when it's possible to have an insured one? For a few days of low, variable yield when I just want the money out of dodge? There are pros to a money market account, but they don't apply much to my investing proclivities.
If this is what is giving you pause over Vanguard, I suggest this is the tail waging the dog. If this really bothers you move your money out of the sweep account to a bank. It is a PITA but that’s what I do to put short term money in the NY MM account.