FinallyRetired
Thinks s/he gets paid by the post
- Joined
- Aug 1, 2002
- Messages
- 1,322
Vanguard Treasury MM Fund closed
I just got a notice from Vanguard that they've closed the Treasury Money Market fund to new contributions. New money will be redirected to the Prime Money Market Fund. The reason given is that yield on short term Treasuries is so low that the fund's future yield could falll to negligible levels.
I really don't understand why they would close a MM fund for that reason. Of course returns are negligible (0.08 YTD) but hey, they're non-negative, which is more than can be said for just about any other Vanguard Fund, and it's safe, which is all I care about at this point.
Treasure MM has an average maturity of 77 days, whereas Prime MM has a whhopping YTD return of 0.27% an average maturity of 68 days. I also note Prime MM is 50% in Treasuries and the rest in CDs and commercial paper.
Mmmm.... something doesn't add up here. They [-]want me [/-] force me to change my savings to a fund with comparable yield, shorter maturity, and higher risk... Could it be they're running short of cash and need some infusion?
Any insights?
I just got a notice from Vanguard that they've closed the Treasury Money Market fund to new contributions. New money will be redirected to the Prime Money Market Fund. The reason given is that yield on short term Treasuries is so low that the fund's future yield could falll to negligible levels.
I really don't understand why they would close a MM fund for that reason. Of course returns are negligible (0.08 YTD) but hey, they're non-negative, which is more than can be said for just about any other Vanguard Fund, and it's safe, which is all I care about at this point.
Treasure MM has an average maturity of 77 days, whereas Prime MM has a whhopping YTD return of 0.27% an average maturity of 68 days. I also note Prime MM is 50% in Treasuries and the rest in CDs and commercial paper.
Mmmm.... something doesn't add up here. They [-]want me [/-] force me to change my savings to a fund with comparable yield, shorter maturity, and higher risk... Could it be they're running short of cash and need some infusion?
Any insights?