SWVXX vs VMFXX (2026)
A cross-brokerage comparison that is really about where your cash already lives. SWVXX is Schwab’s prime fund: higher yield, some short-term corporate credit risk, no state-tax break, and you buy it manually. VMFXX is Vanguard’s government settlement fund: automatic, cheaper, partly state-tax-exempt. Moving money between brokerages to capture the spread is rarely worth it. Pick the best cash option at the brokerage you already use.
By Wealthy Pot · Last updated October 2026
| Feature | SWVXX | VMFXX |
|---|---|---|
| Provider | Schwab | Vanguard |
| Wrapper | Money-market fund | Money-market fund |
| Holdings type | Prime | Government |
| 7-day SEC yield | 3.71% (7-day yield, Sep 30, 2026, SEC filing) | 3.79% (7-day yield, Sep 30, 2026, SEC filing) |
| Share price | Stable $1.00 NAV (targeted, not guaranteed) | Stable $1.00 NAV (targeted, not guaranteed) |
| Expense ratio | 0.34% | 0.11% |
| Minimum | $0 | $0 (as the settlement fund; $3,000 standalone) |
| State tax | Fully taxable at the state level (0% U.S. government obligations, 2025) | Partly state-tax-exempt (66.6% U.S. government obligations, 2025, met the CA/CT/NY threshold) |
| Auto-sweep? | No, Schwab does not auto-sweep into it; you buy it manually | Yes, the Vanguard brokerage settlement fund |
| Best for | Schwab investors who want a higher prime-fund yield on cash | Vanguard investors: it is the default settlement fund and very cheap |
Where SWVXX wins
- A competitive prime-fund yield
- No minimum investment
- One of the most popular funds for Schwab cash
Where VMFXX wins
- The Vanguard brokerage settlement fund: cash lands here automatically
- A very low 0.11% expense ratio, so a high net yield
- Government fund with lower credit risk
- Portion of income is state-tax-exempt
Which should you choose?
A cross-brokerage comparison that is really about where your cash already lives. SWVXX is Schwab’s prime fund: higher yield, some short-term corporate credit risk, no state-tax break, and you buy it manually. VMFXX is Vanguard’s government settlement fund: automatic, cheaper, partly state-tax-exempt. Moving money between brokerages to capture the spread is rarely worth it. Pick the best cash option at the brokerage you already use.
Compare these against every fund in our money-market fund comparison.
We summarize the funds' published facts, not user reviews. Yields are variable, change daily, and are re-checked against each fund's official page. Neither money-market funds nor ETFs are FDIC-insured, and an ETF's share price can fall as well as rise. Some outbound links may be affiliate links. That never affects our comparisons. Nothing here is financial advice.