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Money Market Fund Review

VMFXX Review (2026)

VMFXX is one of the best-value money funds available: it is Vanguard’s settlement fund, so cash sweeps into it automatically, and its rock-bottom fee means more of the yield reaches you. For Vanguard investors it is close to a default best answer for cash.

By Wealthy Pot · Last updated September 2026

TickerVMFXX
ProviderVanguard
WrapperMoney-market fund
Holdings typeGovernment
7-day SEC yield3.63% (7-day SEC yield)
Share priceStable $1.00 NAV (targeted, not guaranteed)
Expense ratio0.11%
Minimum$0 (as the settlement fund; $3,000 standalone)
State taxPartly state-tax-exempt (66.6% U.S. government obligations, 2025, met the CA/CT/NY threshold)
View VMFXX at Vanguard ↗

Pros

  • 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

Cons

  • Only available at Vanguard
  • A $3,000 minimum applies if you buy it as a standalone fund rather than the settlement sweep

Who VMFXX is for

Best for Vanguard investors who want their settlement cash to earn a strong, low-fee money-market yield with no extra steps.

Yield, fees & minimum

Vanguard Federal Money Market Fund (VMFXX) is a government money-market fund from Vanguard, with a 0.11% expense ratio and a $0 (as the settlement fund; $3,000 standalone) minimum. Its 7-day SEC yield (3.63% (7-day SEC yield)) moves with short-term rates. Confirm the current figure on the official page. State tax: partly state-tax-exempt (66.6% u.s. government obligations, 2025, met the ca/ct/ny threshold). It can serve as an automatic core/sweep position. It aims to hold a stable $1.00 share price, though that is a target rather than a guarantee.

The bottom line

VMFXX is one of the best-value money funds available: it is Vanguard’s settlement fund, so cash sweeps into it automatically, and its rock-bottom fee means more of the yield reaches you. For Vanguard investors it is close to a default best answer for cash. Main drawback: only available at vanguard; a $3,000 minimum applies if bought as a standalone fund.

Compare VMFXX with


View VMFXX at Vanguard ↗Compare all money-market funds

See how VMFXX stacks up in our money-market fund comparison, or compare FDIC-insured options in our high-yield savings guide.

We summarize the fund's published facts, not user reviews. 7-day yields are variable, change daily, and are re-checked against Vanguard's official page. Money-market funds are not FDIC-insured and, while low-risk, can lose value in extreme conditions. Some outbound links may be affiliate links. That never affects which funds we include or how we rate them. Nothing here is financial advice.