Some questions about Money Market Funds at brokerage

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Badgered
Posts: 36
Joined: Tue Apr 02, 2024 4:57 pm

Some questions about Money Market Funds at brokerage

Post by Badgered »

Question:
What happens to yield payments in money market funds if you sell before the settlement date?

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Background:
I have a fair amount in money market funds at the moment as an alternative to bonds. According to the prospectus, the MM calculates distributions daily and actually distributes income monthly on the 1st. If I sell my position in the money market mid-month, I should still receive the income distribution on the 1st correct? So, there is no ex-dividend date like you would see in other stocks/holdings?

Just checking, as I might put the money market funds into bonds if/when the rates start changing.
jebmke
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Re: Some questions about Money Market Funds at brokerage

Post by jebmke »

Pro-rated on days you held the fund
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alex_686
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Re: Some questions about Money Market Funds at brokerage

Post by alex_686 »

Money market funds go ex-div daily with a payment date at the end if the month. They system is very robust with no real way to game or lose value.
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Topic Author
Badgered
Posts: 36
Joined: Tue Apr 02, 2024 4:57 pm

Re: Some questions about Money Market Funds at brokerage

Post by Badgered »

jebmke wrote: Tue May 14, 2024 11:54 am Pro-rated on days you held the fund
alex_686 wrote: Tue May 14, 2024 12:03 pm Money market funds go ex-div daily with a payment date at the end if the month. They system is very robust with no real way to game or lose value.
Thanks for the feedback. :happy
That's how I thought it would work, but wanted to make sure since the documentation wasn't all that clear to me.
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