Wealthy PotVUSXX vs VMFXX (2026)
These are Vanguardâs two cash workhorses. VMFXX is the settlement fund (cash sweeps into it automatically) and is a government fund. VUSXX is a Treasury fund you buy manually ($3,000 minimum) whose income is largely state-tax-exempt. Pick VMFXX for the automatic sweep and no minimum; pick VUSXX in a high-tax state to boost after-tax yield.
By Wealthy Pot · Last updated September 2026
| Feature | VUSXX | VMFXX |
|---|---|---|
| Provider | Vanguard | Vanguard |
| Wrapper | Money-market fund | Money-market fund |
| Holdings type | Treasury | Government |
| 7-day SEC yield | 3.71% (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 | 0.07% | 0.11% |
| Minimum | $3,000 | $0 (as the settlement fund; $3,000 standalone) |
| State tax | Fully state-tax-exempt, 100% U.S. Treasury (2025); met the CA/CT/NY threshold | Partly state-tax-exempt (66.6% U.S. government obligations, 2025, met the CA/CT/NY threshold) |
| Auto-sweep? | No, a purchased fund ($3,000 minimum) | Yes, the Vanguard brokerage settlement fund |
| Best for | High-tax-state Vanguard investors who want the lowest fee and state-tax savings | Vanguard investors: it is the default settlement fund and very cheap |
Where VUSXX wins
- A largely state-tax-exempt Treasury fund, valuable in high-tax states
- A rock-bottom 0.09% expense ratio
- Very low credit risk (predominantly U.S. Treasuries)
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?
These are Vanguardâs two cash workhorses. VMFXX is the settlement fund (cash sweeps into it automatically) and is a government fund. VUSXX is a Treasury fund you buy manually ($3,000 minimum) whose income is largely state-tax-exempt. Pick VMFXX for the automatic sweep and no minimum; pick VUSXX in a high-tax state to boost after-tax yield.
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.