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5 Best Money Market Mutual Funds – Investing

Jodie Price

By Jodie Price | Updated September 15, 2025

Money market funds offer a safe and flexible way to earn steady returns while keeping your cash accessible. By investing in short-term, high-quality debt, they balance safety, liquidity, and yield, making them a step up from savings accounts without long-term commitments. The best options offer competitive yields, low costs, and easy access to your money, ensuring your funds are secure and productive.

  • Fidelity Money Market (SPRXX)

    The Fidelity Money Market (SPRXX) offers a trailing 12-month yield of 4.53%, making it a competitive choice for investors seeking steady returns. It manages $129.7 billion in total assets, reflecting its size and investor confidence. However, the fund carries an expense ratio of 0.42%, which is higher than some other money market options.

    Editor’s Take

    The Fidelity Money Market Fund stands out for its accessibility, requiring just a one-dollar minimum investment to get started. However, its expense ratio of 0.42% is higher than many competitors, which could impact overall returns compared to lower-cost options. Still, it appeals to investors looking for an easy entry point with minimal barriers.

    Most of the fund’s holdings are in U.S. Treasury repurchase agreements, also known as repos. These are essentially overnight loans to the Federal Reserve, secured by U.S. Treasurys, and repurchased the next day at a slightly higher price—providing a built-in interest rate.

    Beyond repos, the fund diversifies with other short-term assets such as commercial debt and certificates of deposit. This mix helps balance liquidity and stability while keeping returns steady for investors seeking a low-risk cash management option.

  • Schwab Prime Advantage Money Investor (SWVXX)

    The Schwab Prime Advantage Money Investor (SWVXX) delivers a trailing 12-month yield of 4.87%, offering strong income potential for investors. It is one of the largest funds of its kind, with $363.7 billion in total assets under management. The fund also maintains a relatively low expense ratio of 0.34%, making it a cost-effective choice.

    Editor’s Take

    The Schwab Value Advantage Money Fund has improved by attracting investor funds from low-yield bank deposits to higher-yield money funds. This shift has helped the fund become a more attractive option for those seeking steady returns.

    Today, the fund manages over $360 billion in assets, making it one of the largest in its category. Its biggest holdings are Federal Reserve repurchase agreements, which provide security and consistent yield.

    With more than 750 holdings in total, the portfolio is broadly diversified. The top 10 holdings make up about a quarter of the fund, while other investments include certificates of deposit and commercial papers from financial institutions, adding both stability and liquidity.

  • T. Rowe Price U.S. Treasury Money (PRTXX)

    The T. Rowe Price U.S. Treasury Money Fund (PRTXX) offers a trailing 12-month yield of 4.58%, making it a competitive option for income-seeking investors. It manages $14.7 billion in total assets, focusing primarily on U.S. Treasury securities. With a low expense ratio of 0.31%, the fund provides cost-efficient access to stable, government-backed investments.

    Editor’s Take

    The T. Rowe Price U.S. Treasury Money Fund stands out for its focus on repurchase agreements, which make up the majority of its holdings. This structure provides stability and reliability, aligning with its strategy as a government-backed money market fund.

    To meet this objective, the fund commits at least 80% of its assets to U.S. Treasurys. This heavy allocation to high-quality government securities helps ensure both safety and liquidity for investors.

    Another appealing feature is accessibility, as the fund requires only a $1 minimum investment. This is a practical option for various investors looking for a secure way to hold cash and earn modest returns.

  • JPMorgan Liquid Assets Money Market Morgan (MJLXX)

    The JPMorgan Liquid Assets Money Market Morgan (MJLXX) manages $78.8 billion in total assets and offers a trailing 12-month yield of 4.43%. While it provides a stable return, it comes with a relatively higher expense ratio of 0.59%. This fund may appeal to investors seeking liquidity and consistent performance from a well-established institution.

    Editor’s Take

    MJLXX focuses on investing in high-quality, short-term money market instruments, providing a practical balance of safety and yield. Its portfolio includes U.S. Treasury debt, commercial papers from financial institutions, certificates of deposit, and Treasury repurchase agreements. These holdings create a diversified and secure investment base.

    A key strength of this fund is the high credit quality of its bonds. Over half of the bonds in MJLXX are rated AAA, which represents the highest level of creditworthiness. This gives investors confidence in both the safety and stability of the fund’s portfolio.

    By combining short-term liquidity with a focus on top-rated securities, the fund appeals to investors seeking dependable performance. It serves as a reliable option for preserving capital while keeping cash accessible.

  • Vanguard Federal Money Market Investor (VMFXX)

    The Vanguard Federal Money Market Investor (VMFXX) manages $352 billion in assets, offering a trailing 12-month yield of 4.76%. With an exceptionally low expense ratio of 0.11%, it provides investors with an efficient balance of yield and cost. This fund is a strong choice for those seeking stability and affordability in a money market option.

    Editor’s Take

    The Vanguard Federal Money Market Investor fund manages more than $350 billion in assets, making it one of the largest portfolios among money market funds. Its size places it just behind Schwab’s Prime Advantage Money Investor fund, which is widely used as a sweep account. This scale shows the fund’s popularity and reliability with investors.

    VMFXX invests primarily in securities issued by the U.S. government and its agencies, as well as in repurchase agreements and Treasury bills. The fund usually has an average maturity of 30 to 60 days, balancing stability and liquidity. This short-term focus allows investors to keep cash accessible while earning steady returns.

    While the fund offers an attractive expense ratio, it does come with a minimum investment requirement of $3,000. For investors able to meet this threshold, VMFXX provides a practical mix of safety, scale, and accessibility.

Frequently Asked Questions

Which money market funds offer the best rates for jumbo deposits this year?

Funds that cater to large deposits often provide slightly higher yields than standard accounts. In 2025, some money market accounts report rates near 5.00% for balances above certain thresholds. Online banks and specialized funds tend to offer the most competitive returns for jumbo deposits.

How do Vanguard money market funds compare to other top funds?

Vanguard continues to emphasize low costs and government-backed holdings. The Vanguard Treasury Money Market Fund is popular for investors in high-tax states because of its federal tax advantages. However, it cannot serve as a settlement fund for trades, which may limit convenience compared to other providers.

What are the typical minimum balance requirements for leading money market accounts?

Many accounts require at least $500 to $2,500 to open. Some banks set higher thresholds, especially for their premium or jumbo-rate accounts. Online banks often provide lower minimums, making them more accessible if you want to start with smaller amounts.

Can you list the advantages of investing in money market ETFs over traditional funds?

Money market ETFs trade on exchanges, so you can buy and sell them throughout the day like stocks. They usually have lower minimums than traditional funds and may offer better liquidity. You also gain flexibility if you want to manage them in a brokerage account alongside other investments.

What are the characteristics of Schwab’s money market funds for this year?

Schwab provides competitive yields on government and prime money market funds. The firm focuses on keeping expense ratios low while maintaining daily liquidity. These funds are designed to provide stability and easy access to cash, making them suitable for short-term investment needs.