Hi all, I'm hoping someone can help me with a few questions about these funds.
Vanguard Prime Money Market Fund (VMMXX)
Vanguard Tax-Exempt Money Market Fund (VMSXX)
1. Given the state of interest rates, is there still a meaningful tax benefit to VTSXX? (I can't see one)
2. Given the state of interest rates, aren't investors guaranteed a LOSS in these funds with an expense ratio of 0.17%/0.16% respectively, and a return of 0.01%?
3. As far as I can tell these are the most common recommendations for liquid asset allocation. What are you using for the cash portion of your AA? Are there better options out there?
Cheers
- James