Wealthy PotVMFXX vs VMRXX (2026)
Two Vanguard government money-market funds that hold much the same thing. VMFXX is the settlement fund — cash lands there automatically and there is no minimum. VMRXX is a separate fund you buy deliberately, with a $3,000 minimum and a slightly lower expense ratio. The fee gap is a rounding error on ordinary balances, so the honest answer is that most people should leave cash in VMFXX and not think about it. VMRXX earns its keep only on a large balance where a hundredth of a percent is real money.
By Wealthy Pot · Last updated September 2026
| Feature | VMFXX | VMRXX |
|---|---|---|
| Provider | Vanguard | Vanguard |
| Wrapper | Money-market fund | Money-market fund |
| Holdings type | Government | Government |
| 7-day SEC yield | 3.63% (7-day SEC yield) | 3.63% (7-day SEC yield) |
| Share price | Stable $1.00 NAV (targeted, not guaranteed) | Stable $1.00 NAV (targeted, not guaranteed) |
| Expense ratio | 0.11% | 0.10% |
| Minimum | $0 (as the settlement fund; $3,000 standalone) | $3,000 |
| State tax | Partly state-tax-exempt (66.6% U.S. government obligations, 2025 — met the CA/CT/NY threshold) | Partly state-tax-exempt (69.6% U.S. government obligations, 2025 — not flagged for the CA/CT/NY threshold) |
| Auto-sweep? | Yes — the Vanguard brokerage settlement fund | No — a purchased fund ($3,000 minimum) |
| Best for | Vanguard investors — it is the default settlement fund and very cheap | Vanguard investors who want a cheap government fund and don’t need a sweep |
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
Where VMRXX wins
- A very low fee government fund, often the highest net yield of Vanguard’s lineup
Which should you choose?
Two Vanguard government money-market funds that hold much the same thing. VMFXX is the settlement fund — cash lands there automatically and there is no minimum. VMRXX is a separate fund you buy deliberately, with a $3,000 minimum and a slightly lower expense ratio. The fee gap is a rounding error on ordinary balances, so the honest answer is that most people should leave cash in VMFXX and not think about it. VMRXX earns its keep only on a large balance where a hundredth of a percent is real money.
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.