Compare these two money market funds

[Captain Cactus]

Vanguard has two money market funds:
 
1)  VMMXX:  1.41% yield, 0.16% expense ratio.
2)  VMFXX:  1.24% yield, 0.11 expense ratio (this is the default settlement fund).

I've got about $120K that I'm primarily earmarking for a real estate investment in less than 18-24 months.

Questions:
1)  Any reason why I shouldn't put my dry powder into the higher yielding MM fund?
2)  Are there better options out there that I'm missing?

Thank you MMM community! 

[phil22]

i'm in a similar situation and have cash parked in VMFXX.  no particular reason.  for the questions:

1) none i can think of
2) now that those money market funds actually generate a trickle of returns, i think they'd be easier to manage than CDs, for example.  i don't care about missing out on a couple hundred dollars' worth of potential returns so simpler is better.

[Captain Cactus]

Thanks for reply.  I agree.  If anybody else has input, please speak up!

[Frugancial Advisor]

Where are you located?

If you have 18-24 months before you need the money, you should easily be able to get a guaranteed rate of 1.50% or more on a GIC/CD. That or do some HISA-Hopping: Find companies who offer high introductory savings account rates (i.e. 2.50%) for the first 3 months and when the period is up, hop to another firm offering a similar introductory rate!

[Rocky Road]

Can those MM Funds lose any capital? Capital One MM account is yielding 1.4% now ad FDIC insured.  Not familiar with the tickers you names sorry.  If FDIC insured, sounds good.