Wealthy PotVMFXX 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
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)) changes daily 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.
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…
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.