Schwab money fund pays 0.45% ?

[workmyfingerstothebone]

Google SWVXX and you get this:

Fees & Expenses
Front load N/A
Max. redemption fee N/A
Total expense ratio 0.11%
12 b-1 N/A
Turnover N/A

Thanks for the info,


I'm showing a net fee of 0.34% and gross fee of 0.35%


https://www.schwabassetmanagement.com/products/swvxx

 

[dunkelblau]

Maybe it is for people who buy a LOT of the fund... big inflows or outflows can mess up a fund...



Back when I was in corp trust I would buy between $200 mill and $500 mill for a week every month or so before payments... I had to keep the fund informed of when they were getting money and when I was gong to take it back...

From https://www.schwab.com/money-market-funds it appears that Schwab has restrictions (item #3) for this:
3. Qualifies as a "retail money market fund," which means it is available for investment by natural persons only.

SWVXX is under Prime Money Funds3 (Taxable); these and the Municipal Money Funds3 (Tax-Exempt) have item#3, but the Government and Treasury Money Funds (Taxable) and Variable Share Price Money Funds (Taxable) do not. "The Variable Share Price Money Fund is a prime taxable money fund intended for institutional accounts." Its name suggests this is expected to break the buck while all the others "seek to preserve the value of your investment at $1.00 per share, but cannot guarantee they will do so."

As for risks, the lower-yielding Government and Treasury Money Funds (Taxable) are excluded from this statement: "... may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the fund's liquidity falls below required minimums because of market conditions or other factors. An investment in the Schwab Money Funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Schwab Money Funds’ sponsor has no legal obligation to provide financial support to the Funds, and you should not expect that the sponsor will provide financial support to the Funds at any time."

 

[audreyh1]

MM yield is always after expense ratio.

 

[FREE866]

Thanks for the info:
SNVXXhas an gross expense ratio of 0.38%,,, seems high to me for a money market fund. Is that yield, 4.11 %, after expenses ?
I'll have to check what my Vanguard cash account fee is...

I think it is AFTER expenses like Audrey said, but not positive.

 

[pb4uski]

Does SWVXX have a redemption fee if sold before 180 days?

I see this disclaimer when I try to buy SWVXX:
"All no-transaction-fee (NTF) funds (except ProFunds, Rydex, and Direxion funds) held 180 days or less are subject to a short-term redemption fee of $49.99. This fee is in addition to any applicable transaction fees or fees addressed in the fund prospectus."

Thanks!

No $49.99 fee... not sure where that is coming from.

 

[Texas Proud]

Well, just started the transfer from my 401(k) to Schwab...


Getting the ETrade bonus.. so thanks to whomever mentioned it...


Doing NUA so will get hit with a big tax bill this year

 

[imnontrad]

I bet Schwab has som brokered CDs in the 4-5% range. If this is money that she plans to use in the next 4-5 years, consider building a CD ladder.

 

[partition1]

Goldman Sachs MM is 3.75% with a 1% referral bonus

...nice place to park a few $$

https://www.marcus.com/share/SHE-IFB-BMZ2

 

[pb4uski]

Actually SWVXX is 4.47%, and will probably be going up.

 

[Bdarr]

The easiest way for me is buying short term treasuries at auction, 3 and 6 months treasuries. They can be sold at any point but if you can't wait three months there are other options, even Betterment cash reserves pays 4%. No need to get such small returns from anything but extremely short term money needs!

 

[mickeyd]

I use VGCRFMMF currently for all of my cash. I used Ally for several years but last year changed back to this MMF as the 7day yield surpassed Ally's yield. I think many folks did this.

Vanguard Cash Reserves Federal Money Market Fund Admiral Shares
Management style

Active
Asset class

Money Market
Category

Taxable Money Market
Risk / reward scale

1
Less

More

Expense ratio

0.10%
as of 12/21/2022

7 day SEC yield

4.52%

C

as of 02/21/2023

Investment minimum

$3,000
as of 02/21/2023

NAV price

$1.00
as of 02/21/2023