What is the largest money market fund in the world?
The largest money market mutual fund is Vanguard Federal Money Market Fund (Nasdaq:VMFXX), with assets exceeding US$120 billion. The largest retail money fund providers include: Fidelity, Vanguard, and Schwab.
It's technically possible to lose money in a market account, but not in the same way you can lose money in an investment account. Depending on the terms of your money market account, you could lose value to fees and inflation.
MMFs' aggregate net assets reached a new record of $6.4 trillion on December 31, 2023, according to the OFR's monthly U.S. Money Market Fund Monitor. MMFs experienced cumulative inflows of $1.2 trillion in 2023, the largest on record.
With more than $9 trillion in assets under management (AUM) globally, money market funds (MMFs) are key players in short-term funding markets, especially in US dollars.
BlackRock, Inc. is an American multinational investment company. It is the world's largest asset manager, with $10 trillion in assets under management as of December 31, 2023. Headquartered in New York City, BlackRock has 78 offices in 38 countries, and clients in 100 countries.
| Mutual fund | Assets under management |
|---|---|
| Vanguard 500 Index Fund Admiral Shares (VFIAX) | $851.2 billion |
| Fidelity 500 Index Fund (FXAIX) | $407.6 billion |
| Vanguard Total International Stock Index Fund Admiral Shares (VTIAX) | $354.4 billion |
| Fidelity Government Money Market Fund (SPAXX) | $290 billion |
The Bottom Line. Both money market accounts and money market funds are relatively safe, low-risk investments, but MMAs are insured up to $250,000 per depositor by the FDIC and money market funds aren't. Banks use money from MMAs to invest in stable, short-term securities with minimal risk that are liquid.
Smith: Since their introduction in 1971, money market funds have broken the buck just two times. The first was in 1994, when a fund was liquidated at 96 cents per share because of large losses in derivatives.
Money market funds seek stability and security with the goal of never losing money and keeping net asset value (NAV) at $1. This one-buck NAV baseline gives rise to the phrase "break the buck," meaning that if the value falls below the $1 NAV level, some of the original investment is gone and investors will lose money.
What is the safest money market fund?
| Rank | Fund | Minimum investment |
|---|---|---|
| 1 | Vanguard Federal Money Market Fund (VMFXX) | $3,000 |
| 2 | Schwab Value Advantage Money Fund Investor Shares (SWVXX) | $0 |
| 3 | PIMCO Government Money Market Fund (AMAXX) | $1,000 |
| 4 | Vanguard Cash Reserves Federal Money Market Fund Admiral Shares (VMRXX) | $3,000 |
The Bottom Line
While money market funds aren't ideal for long-term investing due to their low returns and lack of capital appreciation, they offer a stable, secure investment option for individuals looking to invest for the short term.
Many accounts have monthly fees
Another drawback to remember is that while they have high yields, money market accounts can also come with cumbersome fees. Many banks and credit unions will impose monthly fees just for the upkeep of your account.
Goldman Sachs Investor Money Market Fd;I
The Fund seeks to maximize current income to the extent consistent with the preservation of capital and the maintenance of liquidity by investing exclusively in high quality money market instruments.
Income earned from money market fund interest is taxed as regular income, up to 37% depending on the investor's tax bracket. While some local and state taxes offer breaks on income earned from U.S. Treasury bonds, federal income tax still applies.
The annual expense ratios for our money market funds range from 0.09%–0.16%, or $9–$16 for every $10,000 invested.
Vanguard is the world's second-largest investment company or brokerage firm, offering a range of active and passive options, as well as a competitive fee structure and other attractive selling points. BlackRock, Inc. is the world's largest investment firm and asset manager.
Some examples of companies that are currently larger than BlackRock in terms of market capitalization include: - Apple Inc. - Facebook Inc. - Tesla Inc.
2024-03-07 - BlackRock Inc. has filed an SC 13G/A form with the Securities and Exchange Commission (SEC) disclosing ownership of 58,561,851 shares of Fidelity National Information Services, Inc. (US:FIS). This represents 10.2 percent ownership of the company.
“Fidelity's advantage is that it has a massive base of retail and adviser clients using its brokerage services, so it can easily push the ETF to them,” he told Blockworks. “On the other hand, BlackRock is the largest asset manager in the world, with plenty of marketing and distribution muscle of its own.”
Who owns BlackRock?
BlackRock is publicly owned, with its shares held by various shareholders, including institutional investors like Vanguard Group and State Street Corporation and individual shareholders.
BlackRock
BlackRock (BLK) is the largest investment firm in the world. It manages $8.6 trillion in assets as of Dec. 31, 2022. 1 The company has been a proponent of ETFs, and it has gained popularity through its iShares funds.
There is no direct way to lose money in a money market account. However, it is possible to lose money indirectly. For example, if the interest rate you receive on your account balance can no longer keep up with any penalty fees you may be assessed, the value of the account can fall below the initial deposit.
Vanguard Cash Reserves Federal Money Market Fund and Vanguard Federal Money Market Fund: You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so.
Key takeaways
Disadvantages of money market accounts may include hefty minimum balance requirements and monthly fees — and you might be able to find better yields with other deposit accounts.
