Changes to our taxable money market fund lineup

Nowadays, we’re saying some changes to our taxable dollars industry lineup that aim to far better aid your wants for principal preservation, liquidity, and aggressive yields. We have observed and navigated two industry crises in twelve years. With that as a backdrop, we believe it’s far better to provide consumers with a remarkably aggressive generate by lowering fees on a safe government portfolio instead than incurring possibility in the prime industry.

A glance at the key changes

Vanguard Key Money Current market Fund will transform its financial investment tactic and be renamed Vanguard Dollars Reserves Federal Money Current market Fund. When this transform goes into effect in late September 2020, the fund will commit practically solely in cash, U.S. government securities, and/or repurchase agreements that are collateralized solely by U.S. government securities or cash. While the fund has historically been managed a lot more conservatively than its peer team, this transform further more lowers its possibility.

Effective nowadays, the bare minimum first financial investment for the fund’s Admiral™ Shares is being reduced from $five million to $3,000, producing a lot more than 1 million shareholders suitable for diminished fees (.10{bcdc0d62f3e776dc94790ed5d1b431758068d4852e7f370e2bcf45b6c3b9404d} for Admiral Shares in contrast with .sixteen{bcdc0d62f3e776dc94790ed5d1b431758068d4852e7f370e2bcf45b6c3b9404d} for Trader Shares).

With these changes, Vanguard seeks to continue on to provide a dollars industry fund with yields that are remarkably aggressive to all those of prime dollars industry funds, though furnishing the security and security of a portfolio of government securities. Our formula is as simple as it has been prosperous: prudent management and minimal charges.

Our decades of experience, deep financial investment expertise, and minimal charges have enabled Vanguard’s taxable dollars industry funds to provide remarkably aggressive yields devoid of taking undue hazards. This tactic has authorized Vanguard Key Money Current market Fund Admiral Shares to outperform ninety seven{bcdc0d62f3e776dc94790ed5d1b431758068d4852e7f370e2bcf45b6c3b9404d} of the competition in excess of the past 2 decades.* A lot more remarkable, Vanguard Federal Money Current market Fund Trader Shares has trailed Vanguard Key Money Current market Fund Trader Shares only a little in excess of the similar time period.**

Vanguard’s government dollars industry funds have outperformed their peer-team averages and are rated inside the major decile of friends in excess of the 1-, 3-, five-, and 10-yr periods finished June thirty, 2020. We believe a minimal-charge government dollars industry fund has the likely to rival the generate of a prime dollars industry fund and at lessen degrees of credit and liquidity possibility. Vanguard’s government dollars industry funds have delivered sturdy returns relative to prime dollars industry funds, and at lessen degrees of possibility.***

What you need to do

Existing Trader share owners (VMMXX): You have the option to promptly convert† to Admiral Shares to start out taking edge of the lessen expense ratio. You can locate simple stage-by-stage instructions below. If you never initiate a conversion, you will be mechanically transformed someday in between late 2020 by way of 2021. Be aware: Our checkwriting support isn’t out there for the fund’s Admiral share course. Checkwriting is out there for Vanguard Federal Money Current market Fund and other Vanguard dollars industry funds.

Existing Admiral share owners (VMRXX): You never need to get any motion.

Own Advisor consumers who individual Trader Shares (VMMXX): You’ll mechanically be converted† to Admiral Shares in the course of the up coming quarterly rebalance. Speak to an advisor if you have issues about this transition. Be aware: Our checkwriting support isn’t out there for the fund’s Admiral share course. Checkwriting is out there for Vanguard Federal Money Current market Fund and other Vanguard dollars industry funds.

Reopening the Treasury Money Current market Fund

Vanguard Treasury Money Current market Fund (VUSXX) has reopened to new buyers, also helpful nowadays. The fund was closed in April, in the course of a period of heightened volatility and elevated desire in U.S. Treasury investments, to safeguard present buyers from an accelerated reduction in the fund’s generate.

Mainly because of changes in the industry atmosphere, Vanguard thinks it’s now in the ideal passions of shareholders to reopen the fund.


*For the twenty-yr period finished June thirty, 2020, Vanguard Key Money Current market Fund Admiral Shares outperformed ninety seven{bcdc0d62f3e776dc94790ed5d1b431758068d4852e7f370e2bcf45b6c3b9404d} of its peer-team normal. (Supply: Lipper, a Thomson Reuters Firm.) Effects will change for other time periods. Only funds with a bare minimum twenty-yr historical past have been integrated in the comparison. Be aware that the aggressive performance information proven represent past performance, which is not a promise of upcoming final results, and that all investments are matter to hazards. For the most latest performance, check out our web site at vanguard.com/performance.
**The performance of Vanguard Key Money Current market Fund Trader Shares is as follows: 1 yr, 1.52{bcdc0d62f3e776dc94790ed5d1b431758068d4852e7f370e2bcf45b6c3b9404d} five years, 1.25{bcdc0d62f3e776dc94790ed5d1b431758068d4852e7f370e2bcf45b6c3b9404d} 10 years, .64{bcdc0d62f3e776dc94790ed5d1b431758068d4852e7f370e2bcf45b6c3b9404d} twenty years, 1.sixty eight{bcdc0d62f3e776dc94790ed5d1b431758068d4852e7f370e2bcf45b6c3b9404d} thirty years, 2.82{bcdc0d62f3e776dc94790ed5d1b431758068d4852e7f370e2bcf45b6c3b9404d} because inception (June four, 1975), four.eighty five{bcdc0d62f3e776dc94790ed5d1b431758068d4852e7f370e2bcf45b6c3b9404d}. The fund’s latest 7-day SEC generate (August 21, 2020) is .05{bcdc0d62f3e776dc94790ed5d1b431758068d4852e7f370e2bcf45b6c3b9404d}. The fund’s expense ratio is .sixteen{bcdc0d62f3e776dc94790ed5d1b431758068d4852e7f370e2bcf45b6c3b9404d}. The performance of the fund’s benchmark (Money Current market Funds Normal) is as follows: 1 yr, 1.sixteen{bcdc0d62f3e776dc94790ed5d1b431758068d4852e7f370e2bcf45b6c3b9404d} five years, .89{bcdc0d62f3e776dc94790ed5d1b431758068d4852e7f370e2bcf45b6c3b9404d} 10 years, .44{bcdc0d62f3e776dc94790ed5d1b431758068d4852e7f370e2bcf45b6c3b9404d}. The performance of Vanguard Federal Money Current market Fund Trader Shares is as follows: 1 yr, 1.39{bcdc0d62f3e776dc94790ed5d1b431758068d4852e7f370e2bcf45b6c3b9404d} five years, 1.10{bcdc0d62f3e776dc94790ed5d1b431758068d4852e7f370e2bcf45b6c3b9404d} 10 years, .55{bcdc0d62f3e776dc94790ed5d1b431758068d4852e7f370e2bcf45b6c3b9404d} twenty years, 1.sixty{bcdc0d62f3e776dc94790ed5d1b431758068d4852e7f370e2bcf45b6c3b9404d} thirty years, 2.seventy five{bcdc0d62f3e776dc94790ed5d1b431758068d4852e7f370e2bcf45b6c3b9404d} because inception (July thirteen, 1981), four.09{bcdc0d62f3e776dc94790ed5d1b431758068d4852e7f370e2bcf45b6c3b9404d}. The fund’s latest 7-day SEC generate (August 21, 2020) is .09{bcdc0d62f3e776dc94790ed5d1b431758068d4852e7f370e2bcf45b6c3b9404d}. The fund’s expense ratio is .11{bcdc0d62f3e776dc94790ed5d1b431758068d4852e7f370e2bcf45b6c3b9404d}. The performance of the fund’s benchmark (US Governing administration Money Current market Funds Normal) is as follows: 1 yr, .ninety three{bcdc0d62f3e776dc94790ed5d1b431758068d4852e7f370e2bcf45b6c3b9404d} five years, .sixty eight{bcdc0d62f3e776dc94790ed5d1b431758068d4852e7f370e2bcf45b6c3b9404d} 10 years, .34{bcdc0d62f3e776dc94790ed5d1b431758068d4852e7f370e2bcf45b6c3b9404d}. Overall performance information are as of June thirty, 2020. Resources: Bloomberg Lipper, a Thomson Reuters Firm. The performance information proven represent past performance, which is not a promise of upcoming final results. Financial commitment returns will fluctuate. Present performance could be lessen or higher than the performance information cited. For performance information latest to the most latest thirty day period-end, check out our web site at vanguard.com/performance. The generate quotation a lot more carefully displays the latest earnings of the fund than the total return quotation. The performance of an index is not an exact illustration of any certain financial investment, as you simply cannot commit directly in an index.
***For the 1-, 3-, five-, and 10-yr periods finished June thirty, 2020, nine of nine Vanguard dollars industry funds outperformed their peer-team averages and 2 of 2 Vanguard government dollars industry funds outperformed a lot more than 70{bcdc0d62f3e776dc94790ed5d1b431758068d4852e7f370e2bcf45b6c3b9404d} of all prime dollars industry funds. (Supply: Lipper, a Thomson Reuters Firm.) Effects will change for other time periods. Only funds with a bare minimum 10-yr historical past have been integrated in the comparison. Be aware that the aggressive performance information proven represent past performance, which is not a promise of upcoming final results, and that all investments are matter to hazards. For the most latest performance, check out our web site at vanguard.com/performance.
†Share course conversions aren’t a taxable event.

Notes:

Vanguard Key Money Current market Fund, right up until late September 2020: The fund is only out there to retail buyers (natural people). You could eliminate dollars by investing in the fund. While the fund seeks to maintain the worth of your financial investment at $1 per share, it simply cannot promise it will do so. The fund could impose a rate on the sale of your shares or could briefly suspend your means to promote shares if the fund’s liquidity falls beneath expected minimums due to the fact of industry situations or other aspects. An financial investment in the fund is not insured or guaranteed by the Federal Deposit Insurance coverage Corporation or any other government company. The fund’s sponsor has no legal obligation to provide money aid to the fund, and you must not assume that the sponsor will provide money aid to the fund at any time.

Vanguard Dollars Reserves Federal Money Current market Fund, following late September 2020, Vanguard Treasury Money Current market Fund, and Vanguard Federal Money Current market Fund: You could eliminate dollars by investing in the fund. While the fund seeks to maintain the worth of your financial investment at $1 per share, it simply cannot promise it will do so. An financial investment in the fund is not insured or guaranteed by the Federal Deposit Insurance coverage Corporation or any other government company. The fund’s sponsor has no legal obligation to provide money aid to the fund, and you must not assume that the sponsor will provide money aid to the fund at any time.

All investing is matter to possibility, which includes the achievable loss of the dollars you commit.